San Francisco Residential Lease Agreement

Important Information for San Francisco Landlords

San Francisco Rental Law Highlights

San Francisco Rent Ordinance (SF Admin Code Ch. 37)

• Coverage: Most buildings built before June 13, 1979; buildings with 2+ units
• Exemptions: Single-family homes, condos (owner-occupied), post-6/13/1979 construction, certain other categories
• Rent Increases: Limited to annual allowable increase set by SF Rent Board (typically 1-3%)
• Banking Rent Increases: Landlords can bank unused increases for up to 3 years
• Petition Process: Landlords can petition for additional increases for capital improvements, operating costs
• Just Cause Eviction: Required for all rent-controlled units
• Relocation Payments: Required for most no-fault evictions

Security Deposits (Cal. Civ. Code § 1950.5)

• Maximum Amount: 2 months’ rent for unfurnished; 3 months’ rent for furnished
• Return Timeline: 21 days after tenant vacates
• Itemized Statement: Required if any deductions are made
• Interest Required: No (unless local ordinance requires)
• Bad Faith Penalty: Up to twice the deposit amount plus attorney’s fees
• Pet Deposits: Count toward the 2 or 3-month maximum

Rent and Fees (SF Rent Ordinance, Cal. Civ. Code)

• Rent Increases (Controlled): Limited to annual allowable increase (60% of CPI typically)
• Notice Requirements: 30 days for increases under 10%; 60 days for 10% or more
• Late Fees: Must be reasonable; typically not more than 5-10% of rent
• NSF Fees: Maximum $25 first occurrence; $35 subsequent (Cal. Civ. Code § 1719)
• Costa-Hawkins: Landlord can set initial rent on vacant units; increases limited thereafter

Required Disclosures (Cal. Civ. Code, SF Ordinances)

• Lead paint disclosure (pre-1978 properties) – Federal requirement
• Landlord/agent name and address (Cal. Civ. Code § 1962)
• Bedbug notice and history (Cal. Civ. Code § 1954.603, 1954.604)
• Mold information (Cal. Health & Safety Code § 26147)
• Shared utility arrangements (Cal. Civ. Code § 1940.9)
• Rent control status and tenant rights (SF Admin Code § 37.9)
• Database of eviction notices (SF must report no-fault evictions)
• Asbestos (if known)
• Death on property (within 3 years for AIDS-related deaths only)

Just Cause Eviction – SF Admin Code § 37.9

• At-Fault Causes: Non-payment, breach of lease, nuisance, illegal use, refusal of access, etc.
• No-Fault Causes: Owner/relative move-in, Ellis Act withdrawal, substantial rehabilitation, condo conversion, capital improvement, demolition
• Relocation Payments: Required for most no-fault evictions; amounts set by SF Rent Board
• Good Faith Requirement: Owner move-ins must be in good faith; tenant can sue if landlord re-rents
• Ellis Act: Landlord can withdraw all units from rental market; extensive requirements

Eviction and Termination (Cal. Code Civ. Proc., SF Ordinances)

• 3-Day Notice: For nonpayment of rent (pay or quit)
• 3-Day Notice: For lease violations (cure or quit)
• 30/60-Day Notice: For no-fault causes with relocation payments
• Just Cause Required: Cannot evict without one of enumerated just causes
• Court Process: Unlawful detainer action required
• Right to Cure: Tenant can cure certain violations

Landlord Obligations (Cal. Civ. Code § 1941 et seq., SF Housing Code)

• Habitability: Must maintain in fit and habitable condition
• Essential Services: Heat, water, hot water, electricity, gas
• Building Codes: Compliance with all applicable codes
• Repairs: Reasonable time to complete (typically 30 days)
• Smoke Detectors: Required in all units
• Carbon Monoxide Detectors: Required in units with fuel-burning appliances or attached garages
• Seismic Safety: Soft-story retrofit requirements for certain buildings

Entry Requirements (Cal. Civ. Code § 1954)

• Notice Required: 24 hours’ written notice (except emergency)
• Reasonable Times: Normal business hours (8am-5pm typically)
• Permitted Purposes: Repairs, inspections, showings, emergencies
• Tenant Consent: Can allow entry without notice

Tenant Protections (Cal. Civ. Code, SF Tenant Protections)

• Repair and Deduct: Up to one month’s rent for necessary repairs
• Rent Withholding: For uninhabitable conditions
• Retaliation Protection: 180 days after tenant action
• Harassment: Prohibited under California and SF law
• Buyout Agreements: Must be in writing; tenant has 30-day rescission right
• Tenant Associations: Right to organize

San Francisco-Specific Requirements

Strictest Rent Control in California

• Covers most buildings built before June 13, 1979
• Annual rent increase typically limited to 60% of CPI (1-3% recent years)
• Landlords can bank unused increases for up to 3 years
• Petition process for capital improvements and operating cost increases
• Costa-Hawkins allows initial rent setting on vacancy

Just Cause Eviction Protection

• Cannot evict without enumerated just cause
• No-fault evictions require relocation payments (often $10,000-$20,000+)
• Owner move-in has specific requirements and limitations
• Ellis Act withdrawals subject to extensive requirements
• Good faith requirement strictly enforced

Relocation Payments – SF Admin Code § 37.9C

• Required for most no-fault evictions
• Amounts set annually by SF Rent Board
• Typically $10,000-$20,000+ per tenant (varies by situation)
• Additional amounts for elderly, disabled, or families with children
• Must be paid before tenant vacates

Buyout Agreement Protections – SF Admin Code § 37.9E

• Must be in writing with specific disclosures
• Tenant has 30 days to rescind after signing
• Must include notice of right to rescind
• Landlord must report to Rent Board

Seismic Safety Requirements

• Mandatory soft-story retrofit for certain buildings
• Earthquake safety disclosures required
• Compliance deadlines enforced

Fair Housing Requirements

Best Practices for San Francisco Landlords

• Determine if unit is rent-controlled and comply with SF Rent Ordinance
• Register unit with SF Rent Board if required
• Limit rent increases to allowable annual amount
• Provide all required California and SF disclosures
• Limit security deposits to legal maximums (2 or 3 months’ rent)
• Return deposits within 21 days with itemization
• Provide 24 hours’ notice before entry
• Never use self-help eviction methods
• Ensure just cause exists before evicting
• Budget for relocation payments if no-fault eviction needed
• Comply with seismic safety requirements
• Document everything in writing
• Stay current on rapidly changing SF rental laws
• Consider legal counsel given complexity of SF laws

San Francisco Climate Considerations

• Mediterranean Climate: Mild year-round temperatures
• Cool Summers: Fog common, especially western neighborhoods
• Temperature Range: 50°F to 70°F typical range
• Microclimates: Significant variation across neighborhoods
• Heating Often Needed: Cool temperatures even in summer
• Earthquake Zone: Seismic safety critical

Resources

• San Francisco Rent Board
• San Francisco Tenants Union
• SF Department of Building Inspection
• California Civil Code – Landlord-Tenant Provisions
• SF Administrative Code – Chapter 37 (Rent Ordinance)
• Housing Rights Committee of San Francisco
• Small Property Owners of San Francisco