San Francisco Housing Laws: State & Local Rules for Property Owners

January 29, 2026

San Francisco property owners operate in one of the most highly regulated rental markets in the country. Between California statewide housing laws and San Francisco’s local ordinances, compliance requires close attention and ongoing education. When state and local laws overlap, the stricter rule generally applies.


Several recent updates at both the city and state level directly affect how rental properties are managed, from rent increases and eviction procedures to security deposit documentation and tenant fees. Understanding these requirements helps owners protect their investment while operating responsibly in a complex regulatory environment.

San Francisco Housing Laws and Local Rent Control Rules

San Francisco’s Rent Ordinance continues to provide strong tenant protections, particularly for older residential buildings.


Rent Increase Limits in San Francisco

For most rental units built before June 13, 1979, annual rent increases are tied to the Consumer Price Index.
The allowable rent increase is 1.6 percent and is effective March 1, 2026 through February 28, 2027.
The allowable rent increase percentage changes annually and becomes effective March 1 of each year.


Landlords must also comply with notice requirements:
A minimum of 30 days’ written notice for rent increases of 10 percent or less
A minimum of 90 days’ written notice for increases above 10 percent

Proper notice timing and documentation are essential to remain compliant.


Just Cause Eviction Protections

San Francisco requires landlords to establish one of the city’s defined “just causes” to terminate a tenancy. These fall into two categories.


At-fault evictions include reasons such as nonpayment of rent or lease violations. No-fault evictions include circumstances such as owner move-in or the permanent withdrawal of a unit from the rental market.


Each just cause category has specific procedural requirements, and errors in notice language or timing can delay proceedings or result in penalties.


Ellis Act Evictions

For property owners withdrawing rental units from the market under the Ellis Act, San Francisco imposes stricter local standards. These include extended notice periods, generally 120 days for most tenants and up to one year for senior or disabled tenants.


Relocation payments are also required and may reach up to $10,000 per tenant, with household caps that can exceed $30,000, depending on tenant circumstances.


Tenant Buyout Agreements

San Francisco closely regulates tenant buyouts, often referred to as “cash for keys.” All buyout agreements must be filed with the San Francisco Rent Board. Tenants have the right to consult legal counsel and a 45-day period during which they may rescind the agreement.


Rent Board Fees

San Francisco landlords are required to pay an annual Rent Board fee for each residential dwelling unit or guest unit that falls under the Rent Ordinance, unless a current exemption is on file with the Rent Board or a Homeowners’ Exemption is on file with the Office of the Assessor-Recorder. This fee funds the operations of the San Francisco Rent Board and must be paid directly through the Rent Board Portal.


For the 2025-2026 fee year, the Rent Board fee is:

  • $59.00 per dwelling unit
  • $29.50 per guest unit, such as single-room occupancy (SRO) or residential hotel rooms


If the fee is paid in full, landlords may pass through up to 50% of the cost to tenants. This allows for pass-through amounts of:

  • $29.50 per dwelling unit
  • $14.75 per guest unit


The Rent Board fee is due March 1 of each year. A 5% late penalty is added for each month the fee remains unpaid after March 1, up to a maximum penalty of 15%. Fees that are not paid in full by June 1 may be referred to the Bureau of Delinquent Revenue, with additional costs added.


While this fee was previously collected through property tax bills, landlords have been responsible for paying it directly to the Rent Board since 2022.


California State Housing Laws Affecting San Francisco Property Owners

California state law establishes baseline landlord-tenant requirements that apply statewide, including in San Francisco.


Tenant Protection Act (AB 1482)

The California Tenant Protection Act continues to limit annual rent increases for covered properties to 5 percent plus the local Consumer Price Index, capped at 10 percent in any 12-month period.


The law also requires just cause for terminating a tenancy once a tenant has occupied a unit for at least 12 months. In San Francisco, local rules often impose stricter standards.


Security Deposit Documentation Requirements (AB 2801)

Landlords are required to document the condition of a rental unit when deductions are made from a security deposit. This includes taking photographs after move-out and before repairs related to deductions, as well as photographs taken prior to move-in for new tenancies.


These photographs must be provided to the tenant along with the itemized security deposit statement.


Security Deposit Limits

California law generally limits security deposits to one month’s rent for unfurnished residential units, though certain exemptions apply and not all owners are subject to this limit.


Rent Payment Reporting

Landlords who own 15 or more residential units must offer tenants the option to have positive rent payment history reported to at least one national credit bureau.


Fee Limitations

Landlords are prohibited from charging tenants fees for paying rent or a security deposit by check. Fees for serving eviction or termination notices are also not permitted.


For military service members, any additional security deposit charged due to credit concerns must be returned after a period of on-time rent payments.


Eviction Response Timelines

State law provides tenants with additional time to respond to an unlawful detainer lawsuit, affecting eviction timelines and reinforcing the importance of accurate notice and documentation.


Domestic Violence Protections

Landlords must change locks, at the landlord’s expense, when a tenant provides documentation indicating that they or a household member are a victim of domestic violence or abuse.


Why Staying Informed Matters

San Francisco housing laws are designed to balance tenant protections with responsible property ownership. The layered nature of state and local regulations makes compliance complex, but proactive awareness helps owners avoid costly mistakes, reduce disputes, and plan more effectively for long-term ownership.

Managing Compliance With Confidence

Compliance is not just about avoiding penalties. It is about protecting your investment, maintaining stable tenancies, and operating responsibly in a challenging market.



At BanCal Properties, we help owners navigate San Francisco housing laws with clarity and confidence. From rent adjustments and notices to maintenance compliance and tenant communication, our team provides thoughtful, hands-on guidance tailored to your property.


Contact us today if you have questions about how local or state housing laws affect your rental property.

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Author - Kelli Smith

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