Rent Control Laws in San Francisco

Under San Francisco’s rent stabilization ordinance, the amount rent can increase from year to year is tied to the Consumer Price Index (CPI).¹ Rent cannot increase by a larger percentage than the the CPI, with a cap of 7%. Recently, the CPI has hovered around 3% annually. These rent control measures only apply to renewal leases for existing tenants or subtenants, however. If a tenant is entering into a new lease, the landlord can charge as much as they'd like.

Rent can go up by more than the allowed percentage in certain scenarios

There are three situations in which a landlord could raise the rent by a higher percentage than set by the Rent Board:

• Capital improvements: If a landlord makes certain improvements to the property—a new roof, new windows, energy-conservation measures, or anything else that improves the value of the property above and beyond routine maintenance—the cost can be passed on to the tenant at a rate of up to 10% per year. Landlords can also bank these annual increases and use them at a later time. They have to apply for this increase through the Rent Board, and the tenant can challenge the increase or apply for a hardship exemption.²

• Operating costs: If the cost of maintaining or operating the building goes up, the cost can be passed on to the tenant—but only if the increase exceeds the rate set that year by the Rent Board.

• Utility costs: If a landlord is responsible for the utilities—and they increase substantially in cost for some reason—that additional expense can be passed onto the renter.

Most condos and single-family homes aren't rent-controlled

For the most part, single-family homes and condominium units are not covered by the rent control ordinance. However, there are three primary exceptions to this rule:³

• If a tenant rents a single-family home or condo which became vacant because the previous tenant was evicted via a no-fault eviction (that is, not for violating the lease), the new tenant will get rent-control protection. Find out if there's been a no-fault eviction by searching the landlord’s name on the California Superior court website.

• If a tenant rents a single-family home or condo that’s had an uncorrected housing code violation for at least six months before it became vacant, they are covered by the rent control laws. You can search the Department of Building Inspections site to check for violations.

• A condo that’s still owned by the person or entity who subdivided it is subject to rent control—unless it's the last unrented or unsold unit in the building, and the owner lived there for at least a year prior.

Related articles

[1] San Francisco Administrative Code Section 37.3

[2] San Francisco Administrative Code Section 37.7

[3] "Topic No. 019," San Francisco Rent Board (June 2006)