Waive lease termination fees for those with COVID-related health or economic concerns


Waive lease termination fees for those with COVID-related health or economic concerns
The Issue
We made this petition because we believe that something should be done for individuals who wish to terminate their lease agreements and vacate due to health, economic, and/or safety concerns due to COVID-19. While we each signed contracts agreeing that we would pay rent until the lease ends, we did not foresee the events caused by the COVID-19 outbreak. More specifically, COVID-19 has affected the economy with many individuals losing their jobs and the ability to afford rent or exorbitant lease termination fees.
As it currently stands in the lease agreement, there are two options for lease termination with Prometheus Real Estate Group in Oregon that are similar to other apartment complexes:
- Lease break fee: with written notice provide 1.5 times base rent. This buys the remainder of the lease contract.
- Rent responsibility: give 30 days written notice and remain responsible for rent until the new neighbor moves in. With the current "stay at home" order this is not a viable option, because most interactions such as touring an apartment with an agent or meeting in-person to sign a lease are restricted.
Exception: Oregon law currently states that termination fees are waived for individuals who vacated due to military service or domestic abuse.
If an individual needs to vacate due to health and safety concerns caused by the pandemic, it's not unreasonable to ask landlords and lawmakers to consider the exception and work with the tenant to avoid punitive damages. Due to limited funding, Oregon has no government office that deals directly with tenant-landlord affairs and can speak on the tenant’s behalf. Currently real estate companies are eligible to receive federal bailout money and recoup losses, meanwhile a record-breaking 6.6 million Americans are filing for unemployment at a time when 40% of American adults cannot afford to cover a $400 emergency with cash. In other words, these fees could put many individuals in a financial bind.
If a tenant needs to leave an apartment complex due to pre-existing conditions that put them at risk for serious illness (and possibly death) due to SARS-CoV-2 infection, they should not have to also endure further financial hardship. Notwithstanding the emotional toll on individuals who live thousands of miles away from family and lack a reliable support network.
In response to the pandemic, property managers have taken measures to protect themselves from all people coming in and out of the building, including tenants. Take for example the aforementioned large commercial real estate property managers' response in Portland, where they made unilateral changes to close off significant portions of the building and services. This clearly demonstrates that the building is not a safe environment for everyone. Meanwhile tenants are expected to pay in full for limited service, locked office doors, blocked access to common areas and amenities. In our specific case, we were not given the opportunity to weigh in for alternatives to a mutually beneficial solution, or discussions of remuneration, changes in policies, or compensation. Currently tenants have to accept these changes in policy with no platform for discussion or recourse.
An additional consequence to these policy changes is that property managers are unable to show apartments, which no longer gives tenants a fair opportunity to waive their termination fees under the "Rental Responsibility" option (see #2). Tenants are forgiving on many fronts to both local landlords and commercial owned real estate groups. Professionally managed properties, especially those seeking bailout money, should reciprocate without hassle and not be so dogmatic. These are unprecedented times and penalties should be waived or greatly reduced.
157
The Issue
We made this petition because we believe that something should be done for individuals who wish to terminate their lease agreements and vacate due to health, economic, and/or safety concerns due to COVID-19. While we each signed contracts agreeing that we would pay rent until the lease ends, we did not foresee the events caused by the COVID-19 outbreak. More specifically, COVID-19 has affected the economy with many individuals losing their jobs and the ability to afford rent or exorbitant lease termination fees.
As it currently stands in the lease agreement, there are two options for lease termination with Prometheus Real Estate Group in Oregon that are similar to other apartment complexes:
- Lease break fee: with written notice provide 1.5 times base rent. This buys the remainder of the lease contract.
- Rent responsibility: give 30 days written notice and remain responsible for rent until the new neighbor moves in. With the current "stay at home" order this is not a viable option, because most interactions such as touring an apartment with an agent or meeting in-person to sign a lease are restricted.
Exception: Oregon law currently states that termination fees are waived for individuals who vacated due to military service or domestic abuse.
If an individual needs to vacate due to health and safety concerns caused by the pandemic, it's not unreasonable to ask landlords and lawmakers to consider the exception and work with the tenant to avoid punitive damages. Due to limited funding, Oregon has no government office that deals directly with tenant-landlord affairs and can speak on the tenant’s behalf. Currently real estate companies are eligible to receive federal bailout money and recoup losses, meanwhile a record-breaking 6.6 million Americans are filing for unemployment at a time when 40% of American adults cannot afford to cover a $400 emergency with cash. In other words, these fees could put many individuals in a financial bind.
If a tenant needs to leave an apartment complex due to pre-existing conditions that put them at risk for serious illness (and possibly death) due to SARS-CoV-2 infection, they should not have to also endure further financial hardship. Notwithstanding the emotional toll on individuals who live thousands of miles away from family and lack a reliable support network.
In response to the pandemic, property managers have taken measures to protect themselves from all people coming in and out of the building, including tenants. Take for example the aforementioned large commercial real estate property managers' response in Portland, where they made unilateral changes to close off significant portions of the building and services. This clearly demonstrates that the building is not a safe environment for everyone. Meanwhile tenants are expected to pay in full for limited service, locked office doors, blocked access to common areas and amenities. In our specific case, we were not given the opportunity to weigh in for alternatives to a mutually beneficial solution, or discussions of remuneration, changes in policies, or compensation. Currently tenants have to accept these changes in policy with no platform for discussion or recourse.
An additional consequence to these policy changes is that property managers are unable to show apartments, which no longer gives tenants a fair opportunity to waive their termination fees under the "Rental Responsibility" option (see #2). Tenants are forgiving on many fronts to both local landlords and commercial owned real estate groups. Professionally managed properties, especially those seeking bailout money, should reciprocate without hassle and not be so dogmatic. These are unprecedented times and penalties should be waived or greatly reduced.
157
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Petition created on April 27, 2020
