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Rent Increase Laws in San Francisco

Rent Increase Laws in San FranciscoRent Increase Laws in San Francisco

Summary

San Francisco is one of the most popular places in California to live. With the thriving cultural scene, beautiful coastal backdrop, and plenty of economic and educational opportunities, it is no wonder that San Francisco is a national hub for tech, arts, and commerce. With that in mind, it's no surprise that real estate investors keep a close eye on opportunities to invest in this area. When they do, however, they need to be wary of pricing their rentals in a way that follows local and state rent control laws.

San Francisco is one of the priciest rental markets in the nation. Averaging $2,800 for a one-bedroom apartment, which is almost $1K over the national average. The high rent is no surprise considering landlords price their units incredibly competitively in the area. However, the City of San Francisco has put limitations on how much landlords can raise rents in order to protect its residents from being priced out o their homes. 


Can I Raise Rent For My San Francisco Units? 

Landlords can raise the rent in San Francisco but are restricted in several ways to protect tenant rights. The time and amount that a landlord can increase rent depend on two factors:


  • The approved rent increase rate, annually published by the Rent Board
  • The "anniversary date" of the last rent increase or lease signing


Landlords can only increase rent once every twelve months on the "anniversary date" of the last rent increase/move-in date. When they raise the rent after 12 months, they may only do so at the rate approved for that year unless they have not raised the rent in over 12 months. In this case, the landlord may increase the rent above the approved rate to "catch up" to market rates as long as they are in accordance with state rent control laws. 


Landlords may also increase rent above the city limit if significant improvements are being made to the unit, such as a major renovation or the addition of new amenities or rooms. 


Rent Increase Limits in San Francisco

Each year, the San Francisco Rent Board pre-approves a percentage rent increase limit for all protected rentals in the area. This percentage is based on the Consumer Price Index for All Urban Consumers in the Bay Area, and this year was determined at 60% of this recommendation. 


For 2022, the allowable rental increase amount is 2.3%. 


This figure is for units that had a rent increase in the previous year and may not apply to certain properties. However, the State of California also imposes a rent control limit of "5% plus the percentage change in the cost of living, as defined, or 10%, whichever is lower."


Other Considerations When Raising Rents in San Francisco

In addition to the percentage land rent increase frequency limitations, San Francisco landlords must also provide proper notice before raising their rent. Increases are not allowed to be automatically triggered, and landlords must give 30 days notice for an increase of less than 10% or a 90-days notice for an increase of more than 10%. This notice must be delivered in writing, and an additional five days may be added to the notice requirement if sent by mail. 


How To Price Your San Francisco Rental Right

RentSpree makes it easy for you to price your rental right regardless of its location in the Bay Area. We provide detailed insights into local and national market trends and help you navigate local laws and regulations using our Rent Estimate tool. If you're looking for a simple pricing strategy that works, talk to us about how to use our Rent Estimate tool. 


You can schedule a demo to learn how to best price your San Francisco rental, or contact us to learn about all the tools available on RentSpree!

Rent Estimate

Price your rentals with confidence with a custom Rent Estimate Report

RentSpree offers a comprehensive rent analysis and rent rate estimate report to help you maximize your rental profit.

Cap Rate Calculator

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How to use

Enter information in the boxes below to calculate the comparative value of a piece of property in order to determine if it would be a good investment for you.

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Commission Calculator

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Rent to Income Ratio Calculator

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Rent-to-Income Ratio Calculator

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Rent-to-Income Ratio:

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Move-in Move-out Calculators

Move-In Calculator

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Move-out Calculator

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Move-Out Prorated Rent:

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