Furnished Rentals: Are San Francisco's Laws Unique?

is the law different for furnished rentals in san francisco

San Francisco has strict rental laws that are robust when it comes to tenant protections. The San Francisco Rent Ordinance offers rent control and eviction protections for most tenants, particularly those in residential units built on or before June 13, 1979. The allowable rent increase is determined annually by the Rent Board, and landlords must provide tenants with written notice of any rent increase. In addition, landlords may charge a maximum of three months' rent for a furnished unit as a security deposit. So, how do these laws apply to furnished rentals in San Francisco?

Characteristics Values
Rental laws San Francisco has strict rental laws, especially regarding tenant protections.
Rent Ordinance The San Francisco Rent Ordinance offers rent control and eviction protections for most tenants, particularly in residential units built before June 13, 1979.
Rent Control Rent increases are limited to a certain percentage each year, with the allowed increase for 2024-2025 set at 1.7%.
Eviction Protections Landlords must provide valid reasons for evictions, and tenants with tenant-based assistance, such as Section 8 vouchers, are covered by eviction protection.
Short-Term Rentals Short-term rentals (stays of less than 30 days) were illegal before 2015. Now, hosts must register with the Office of Short-Term Rentals and adhere to specific regulations.
Security Deposits Landlords can charge up to two months' rent for an unfurnished unit and three months' rent for a furnished unit as a security deposit.
Repairs and Maintenance Tenants can request repairs, and landlords must address these requests within 30 days. Failure to do so can result in legal consequences.
Discrimination Federal, state, and local fair housing laws prohibit discrimination based on race, color, national origin, religion, sex, familial status, disability, and other protected characteristics.
Ellis Act The Ellis Act, a California state law, allows landlords to withdraw rental properties from the market, but San Francisco has implemented additional regulations, including extended notice periods and relocation assistance for tenants.

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Rent control

The San Francisco Rent Ordinance offers rent control and eviction protections for most tenants. The Rent Ordinance is administered by the San Francisco Rent Board. The ordinance covers most residential rental units built before June 13, 1979. Under this ordinance, the allowable rent increase is determined annually by the Rent Board based on the Consumer Price Index (CPI). For the 2024-2025 period, the allowable increase is set at 1.7%. This means rents can only be raised by certain amounts per year, and the tenant can only be evicted for "just causes". Landlords must provide tenants with written notice of any rent increase, typically 30 days in advance for increases of 10% or less and 90 days for increases above 10%.

Some rental units have restrictions on how much the landlord can charge the new tenant due to previous evictions. If the unit does not fall under an exemption, then it is covered. For the units covered only under California rent control, annual rent increases are capped at 5% plus the cost of living increase or 10%, whichever is lower, for tenants who have occupied the unit for 12 months or more.

Tenants with tenant-based assistance, such as Section 8 vouchers, are still covered by the eviction protection of the Rent Ordinance and are sometimes covered by the rent control of the ordinance. If you live in a single-family home, you usually do not have full rent control protection. While these units do not usually have limits on rent increases, they do have "just cause" eviction protection, meaning tenants can only be evicted for valid reasons.

The "new construction exemption" is the biggest exemption in San Francisco. If you live in a rental unit with a certificate of occupancy after June 13, 1979, with a few exceptions, your unit is exempt from the Rent Ordinance. However, some "accessory units", often called in-law units, are still covered by rent control despite having a certificate of occupancy issued after June 13, 1979.

California law regulates the collection, use, and return of security deposits. Landlords can charge a maximum of two months' rent for an unfurnished unit and three months' rent for a furnished unit as a security deposit. Upon termination of the tenancy, landlords must return the deposit within 21 days, minus any lawful deductions for unpaid rent, repair of damages beyond normal wear and tear, etc.

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Eviction protection

San Francisco has strict tenant protection laws, and the San Francisco Rent Ordinance offers rent control and eviction protections for most tenants. The Rent Ordinance covers most residential rental units built before June 13, 1979, and the allowable rent increase is determined annually by the Rent Board.

Tenants with tenant-based assistance, such as Section 8 vouchers, are covered by the eviction protection of the Rent Ordinance, and sometimes by the rent control provisions. Additionally, tenants in single-family homes are protected under the Rent Ordinance from being evicted without "just cause", even if they are not covered by rent control. Just causes for eviction include non-payment of rent, the owner moving into the home, extensive capital improvements or repairs, and permanently withdrawing the home from the rental market.

The Ellis Act is a California state law that allows landlords to withdraw their rental properties from the rental market, effectively evicting all tenants, provided certain conditions are met. However, San Francisco has implemented additional regulations to govern its use. For example, landlords who invoke the Ellis Act must provide tenants with a minimum of 120 days' notice, which extends to one year for elderly or disabled tenants.

Short-term rentals (stays of less than 30 days) in San Francisco were illegal before 2015. Now, hosts must register with the Office of Short-Term Rentals and comply with various regulations, including obtaining a Business Registration Certificate and posting the certificate number on all listings. Rentals of 30 days or longer are not subject to short-term rental regulations but may be subject to rental/tenant protections and rent control provisions.

California law also regulates the collection, use, and return of security deposits. Landlords can charge a maximum of two months' rent for an unfurnished unit and three months' rent for a furnished unit as a security deposit. Upon termination of the tenancy, landlords must return the deposit within 21 days, minus any lawful deductions.

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Short-term rentals

To offer a residential unit for short-term rentals, you must first obtain a Business Registration Certificate from the San Francisco Office of the Treasurer & Tax Collector. You must then either receive a certificate from the Office of Short-Term Rentals and post the certificate number on all short-term rental listings, or have a complete application pending review with the Office of Short-Term Rentals, currently reside in the residential unit as a permanent resident, and have no complaints or enforcement actions pending against the property. The application fee for short-term rental registration is $925.

Rentals for more than 30 consecutive nights by the same visitors are not subject to short-term rental regulations or hotel taxes. However, rental/tenant protections and rent control provisions may apply to stays of 30 days or more.

Student housing, dormitories, and single-room-occupancy (SRO) buildings are generally not permitted to offer short-term rentals. However, some SROs may offer short-term rentals during the tourist season, which runs from May 1 to September 30. Legally established accessory dwelling units (ADUs) or junior ADUs (JADUs) are permitted to offer rentals/listings for at least 30 days per guest.

California state law allows landlords to withdraw their rental properties from the market and evict all tenants under the Ellis Act, provided certain conditions are met. San Francisco has implemented additional regulations for the use of the Ellis Act, including requiring landlords to provide tenants with a minimum of 120 days' notice, extending to one year for elderly or disabled tenants, and potentially requiring landlords to pay relocation assistance to displaced tenants.

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Security deposits

A security deposit is money, usually one month's rent, that a landlord holds in case the tenant damages the rental unit or breaks the lease and doesn't pay rent. In San Francisco, the law previously allowed landlords to charge up to two months' rent for an unfurnished unit and three months' rent for a furnished one. However, as of July 1, 2024, a new law, AB 12, was enacted, limiting the maximum security deposit for any dwelling unit to one month's rent, regardless of whether it is furnished or unfurnished. This law includes an exception for small landlords with no more than two rental properties and a total of four dwelling units; they may still collect up to two months' rent as a security deposit.

Before a tenant moves in, a landlord may request a security deposit. Regardless of what it is called (e.g., a key deposit, cleaning fee, or last month's rent), this initial payment is considered a security deposit and is subject to the same regulations. It is important to note that there is no such thing as a "non-refundable" security deposit; all money paid in addition to the first month's rent must be refundable. Additionally, there is no legal basis for a landlord to increase the security deposit amount over time.

When a tenant moves out, the landlord must return the deposit within 21 days, although this may be extended if repairs cannot be reasonably completed within that timeframe. The landlord can make deductions from the deposit for specific reasons, such as unpaid rent, reasonable cleaning charges to restore the unit to its original condition, and damage caused by the tenant beyond normal wear and tear. If the tenant does not agree with the deductions, they can request the return of the deposit in writing and, if necessary, sue the landlord in Small Claims Court for the disputed amount and any associated losses.

To ensure a smooth process, tenants should carefully document the condition of the rental unit when they move in, recording any existing damage and ensuring all appliances are functional. They can request that the landlord sign and date this inventory, and it is advisable to keep a copy for their records. Before moving out, tenants have the right to a pre-move-out inspection, during which they can identify and fix any deficiencies to avoid deductions from their deposit. Landlords are required to notify tenants of their right to this inspection within the last two weeks of the tenancy and provide a 48-hour notice of the inspection date. After the inspection, the landlord must provide an itemized statement specifying any repairs or cleaning that could result in deductions. This statement should be left inside the premises if the tenant is not present and must include information reminding the tenant of their rights regarding the security deposit.

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Rent increases

San Francisco has strict rental laws that are robust when it comes to tenant protections. The San Francisco Rent Ordinance offers rent control and eviction protections for most tenants. The Rent Ordinance covers most residential rental units built before June 13, 1979. Under this ordinance, the allowable rent increase is determined annually by the Rent Board based on the Consumer Price Index (CPI). The allowable increase for 2024-2025 is set at 1.7%. Landlords must provide tenants with written notice of any rent increase, typically 30 days in advance for increases of 10% or less and 90 days for increases above 10%.

For units covered only under California rent control, annual rent increases are capped at 5% plus the cost of living increase or 10%, whichever is lower, for tenants who have occupied the unit for 12 months or more. Leases of single-family homes signed after January 1, 1996, are not subject to rent limits, but the tenant is still protected under the Rent Ordinance from being evicted without "just cause." If a tenant moved in after that date, there is no limit on the amount of rent that can be charged. However, if the landlord seeks a rent increase of more than 10% of the tenant's current rent, then notice of the rent increase must be given to the tenant 60 days before it goes into effect.

Tenants with tenant-based assistance, such as Section 8 vouchers, are still covered by the eviction protection of the Rent Ordinance and are sometimes covered by the rent control provisions of the Ordinance. Tenants in single-family homes are also protected by the Rent Ordinance, which mandates that a tenant's rent can only be increased under the limit set by the Rent Board.

Rentals for more than 30 consecutive nights by the same visitors (Intermediate Length Occupancies, ILO) are not subject to short-term rental regulations or hotel (transient occupancy) taxes. However, rental/tenant protections and rent control provisions may apply to stays of 30 days or more.

Frequently asked questions

The San Francisco Rent Ordinance offers rent control and eviction protection for most tenants in residential rental units built before June 13, 1979.

In San Francisco, a short-term rental is defined as the rental of a residential unit for less than 30 nights. Rentals longer than 30 nights are subject to different regulations and may be subject to business personal property taxes.

To list a furnished rental on Airbnb in San Francisco, you must complete a registration process, which includes obtaining a Business Registration Certificate and a certificate from the Office of Short-Term Rentals. You must also post the certificate number on all listings and keep records for at least two years.

In San Francisco, landlords can charge a maximum of three months' rent for a furnished unit as a security deposit. The security deposit must be returned to the tenant within 21 days of the termination of the tenancy, minus any lawful deductions.

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