Zoe York, MAI Appraiser, discusses what Oregon's rental control Senate Bill 608 could mean for the value of your multi-family property. Disclaimer: This presentation is meant to answer general, broad questions about the changes to Oregon Rent Control Senate Bill 608 (“SB 608”). Landlords should consult with an attorney before taking any action as it relates to End of Tenancy/Non-Renewal Notices and/or increasing rent. All opinions are my own. These statements are not meant to be taken as investment advice.

1. Zoe R. York, MAI
260 West 12th Avenue, Eugene, OR 97401
(541) 687-1938 / (541) 683-0932
zoe@duncanbrown.com
www.duncanbrown.com
Rene’ Nelson, CCIM, CRE
895 Country Club Rd, Eugene, OR 97401
(541) 912-6583
rene@1031guru.com
www.eugene-commercial.com
Rachel McLaughlin
Exchange Facilitator
Cascade Title Company
800 Willamette Street, Eugene, OR 97401
(541) 687-2233
rmclaughlin@cascadetitle.com
www.cascadetitle.com
Brian Cox
Real Estate & Property Mgmt Attorney
Brian Cox Law Offices
142 W 8th Avenue, Eugene, OR 97401
(541) 683-7151
bcox@coxassociates.info
www.briancoxeugeneattorney.com

2. Zoe York, MAI Appraiser
Commercial Real Estate Appraiser
Duncan & Brown Appraisal
Services

3. Demand Overview – Multi-Family
Eugene-Springfield 2018 Co-Star Rent/Unit Springfield
Co-Star Rent/Unit Eugene
 Rents trending upward since 2013-
14
 Springfield rent increases in range
of 30%-40%.
 Eugene rent increases in range of
20% to 30%.
 Gap closing between
Eugene/Springfield rent levels
given limited supply and high
demand
 Average rent levels Eugene v.
Springfield also impacted by % of
new units in the data set: less new
unit construction in Springfield
compared to Eugene.
 Average increases over time less
than 5% per year.

4. 2-4 Unit Income Approach
Rent Multipliers (GRM/GIM)
GRM (Monthly Factor) – Appraisal Practice
Gross Rent (Monthly) x GRM (Gross Rent Multiplier) = Value
GIM (Annual Factor) – MLS Calculations / Brokers
Gross Rent (Annually) x GIM = Value
EXAMPLE:
Duplex: $800/unit rent = $1,600 Gross Monthly Rent and
$19,200 Annually
GRM: 150
Value: $1,600 x 150 = $240,000
GIM: 12.5
Value: $19,200 x 12.5 = $240,000

5. 2 to 4 Units-Value Change
Trends Over Time:
 Early 2007 GRM’s were 170 to 190 (14-16)
 Late 2010-12 GRM’s were 125 to 140 (10-12)
 Late 2017-2019 GRM’s are 140-165+ (12-14)
*market v. below market impacts
How Changes in Variables Impact Value:
EXTRACTING GRM’s AND GIM’s FROM MARKET
Sample Property Sold for $250,000 - duplex
-Current Rent of Sale Property $1,600/ month, $19,200/year
(Extracted GRM = 156, GIM = 13)
-Market Rent of Sale Property $2,000/month, $24,000/year
(Extracted GRM = 125, GIM = 10.5)

6. What Could Rent Control Mean
for Your Value?
Subject In-Place Rents: $20,000/year
(substantially below market)
Market Rents: $25,000/year
*Potential for limited investor perceived
upside, rents will likely be analyzed as current,
not set at market
2017-2018 Trends: $25,000 x 10.5 =
$260,000. Reflects upside.
Potential Impacts: $20,000 x 10.5*=
$210,000. No more upside.
*Example Shows Extremes, GRMs/GIMS
will be driven by the market

7. Timing of Change
• Changes dictated by market reactions. Lag
of actual change versus observed impacts.
• Will there be added supply due to investor
portfolio changes?
• Will there be added risk PERCEIVED in the
market?
• Primary risk for projects 10% or more
below market.
• Actual long term rental increase trend less
than 5% per year on average. Long term
holds can catch up with good management.

8. Where Do I Go Now?
Visit Rene’s Website For Latest Information…
Oregon Rent Control Center
www.eugenecommercial.com

9. For further information:
Zoe York – zoe@duncanbrown.com
(541) 687-1938
Rene’ Nelson – rene@1031guru.com
(541) 912-6583
Rachel McLaughlin –
rmclaughlin@cascadetitle.com
(541) 687-2233
Brian Cox – bcox@coxassociates.info
(541) 683-7151