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Navigating 2025 Rental Laws in San Francisco

Navigating 2025 Rental Laws in San Francisco

Navigating 2025 Rental Laws in San Francisco: 

San Francisco's rental laws are among the most tenant-friendly in the country, and staying informed is crucial for landlords and tenants. In 2025, changes and updates to rental laws aim to address housing affordability, eviction protections, and the balance of rights between tenants and property owners. Whether you're a landlord managing multiple properties or a tenant looking for a place to call home, understanding these regulations can save time, money, and stress.

The Basics of Rent Control in San Francisco

San Francisco's Rent Ordinance, enacted in 1979, remains a cornerstone of the city's rental regulations. In 2025, it continues to apply to most multi-unit properties built before June 13, 1979. Under rent control, landlords can only increase rent by a percentage set annually by the San Francisco Rent Board. For 2025, the allowable annual increase is 2.8%, reflecting inflation trends.

Properties exempt from rent control include:

  • Single-family homes (with certain exceptions for corporate-owned properties).

  • Newer buildings constructed after 1979.

  • Fully owner-occupied buildings with fewer than three units.

While rent control governs how much landlords can increase rent, other rules dictate tenant protections, making it essential to differentiate the two.

Ellis Act Evictions: Stricter Rules in 2025

The Ellis Act, which allows landlords to withdraw rental properties from the market, has faced tighter regulations in 2025. The city has introduced stricter timelines and compensation requirements to protect vulnerable tenants.

Key changes include:

  • Extended notice periods: Landlords must now provide 120 days' notice for most tenants and one year for seniors (62+) and disabled individuals.

  • Increased relocation payments: Landlords must compensate displaced tenants with up to $10,000 per tenant or a cap of $30,000 per household, depending on income and family size.

These changes aim to discourage speculative real estate practices while safeguarding long-term renters.

Just Cause Evictions: Enhanced Protections

San Francisco law requires landlords to provide "just cause" when evicting tenants. This means landlords cannot terminate a tenancy without a valid reason. In 2025, expanded just-cause protections ensure tenants in newly built units (constructed after 1979 but before 1995) are also covered under the Costa-Hawkins Rental Housing Act amendment.

Valid just causes for eviction include:

  • Nonpayment of rent.

  • Breach of lease terms.

  • Owner move-in (OMI), provided landlords comply with strict OMI regulations.

Landlords must follow precise steps to avoid legal disputes, including filing notices with the San Francisco Rent Board and offering relocation assistance where required.

Short-Term Rentals: New Compliance Standards

San Francisco's strict short-term rental laws continue to evolve in 2025. Property owners renting through platforms like Airbnb or VRBO must adhere to:

  1. Registration requirements: Hosts must register with the city's Office of Short-Term Rentals (OSTR).

  2. Rental limits: Hosts can only rent their property for up to 90 days per year if it's not their primary residence.

  3. Tax obligations: Operators must collect and remit transient occupancy taxes (TOT) to the city.

Failure to comply can lead to hefty fines, legal action, and potential bans from short-term rental platforms.

Rent Board Fee and Filing Updates

The San Francisco Rent Board charges landlords an annual fee per rental unit, which they can pass on to tenants (capped at 50%). For 2025, this fee has been adjusted to $58 per unit, reflecting administrative cost increases.

Additionally, landlords must keep meticulous records and report tenant turnover rates, rent increases, and eviction notices to the Rent Board to maintain compliance.

Accessory Dwelling Units (ADUs): A Housing Solution

San Francisco continues to promote Accessory Dwelling Units (ADUs) to increase affordable housing stock. ADUs, often referred to as in-law units or granny flats, are subject to specific rules:

  • Newly constructed ADUs are exempt from rent control, but tenants still receive eviction protections.

  • ADUs must meet zoning, building, and safety standards set by the city.

Incentives, including expedited permitting processes, make ADUs a viable option for property owners looking to maximize their space.

Tenant Buyouts: Transparency Is Key

Tenant buyouts—when landlords offer tenants money to vacate voluntarily—are common in San Francisco but heavily regulated. In 2025:

  • All buyout agreements must be filed with the Rent Board.

  • Tenants have the right to consult legal counsel and may rescind agreements within 45 days of signing.

Landlords must ensure transparency or risk voiding the agreement and facing fines.

Impact of Statewide Legislation

San Francisco's rental landscape also reflects California's broader housing laws. The Tenant Protection Act of 2019 (AB 1482) introduced statewide rent caps and just-cause eviction standards for properties not covered by local ordinances. In 2025, San Francisco remains stricter, but landlords must navigate overlapping regulations carefully.

Conclusion

San Francisco's rental laws in 2025 reflect the city's ongoing efforts to balance tenant protections with landlord rights in a challenging housing market. Whether you're renting out a property or signing a lease, understanding these laws is essential to navigating the complexities of the city's rental landscape.

Stay informed, act responsibly, and use resources like the San Francisco Rent Board to ensure compliance and fairness in all rental transactions.

 


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