San Francisco Residential Lease Agreement

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A residential lease agreement in San Francisco is a binding document between a landlord and a tenant. This agreement outlines the terms and conditions surrounding the use of a rental property in exchange for periodic payments.

Residential Lease Agreement Requirements in San Francisco

San Francisco currently has no city-specific residential lease agreement requirements or disclosures. As such, landlords and tenants in San Francisco follow California requirements for lease agreements.

Landlord-Tenant Rights and Regulations in San Francisco

When it comes to landlord-tenant rights, landlords should be aware of the following:

Just Cause Evictions

Under the San Francisco Rent Ordinance, it is illegal for a landlord to evict a tenant without a just cause. Similar to state law, this includes both at-fault and no-fault just cause evictions. [1] For all evictions, landlords must provide tenants with a written notice stating the just cause reason for the eviction.

No-Fault Evictions

At-Fault Evictions

An at-fault eviction is a term used when the notice to end the tenancy is based on the fault of the tenant. For at-fault evictions, landlords must provide written notice of the eviction, as well as an opportunity to cure the violation (if it is curable).

Some examples of at-fault evictions include:

Eviction Notice Requirements

For no-fault evictions, landlords must provide tenants with written notice of the right to relocation payments. The landlord must pay each tenant a total of $4,500. Half of this amount should be paid at the time of notice, and the other half after vacating the unit. [2] Additionally, if the property is available to rent or lease within 5 years of the eviction, the landlord must first offer the unit to the displaced tenant. The tenant will then have 30 days to accept or reject the offer. [3]

For at-fault evictions, landlords must provide tenants with a written notice stating that they have 10 days to cure the violation. If the 10-day period has passed, it may result in an eviction.

Rent Control Protection

The San Francisco Rent Ordinance also includes rent control protection for most tenants. Under this ordinance, landlords are restricted by how much they can increase rent in a 12-month period. This percentage changes each year based on the Consumer Price Index (CPI). [4] Landlords must give tenants a 30-day notice of a rent increase, as well as a 90-day notice for increases greater than 10%. A landlord must be licensed in order to increase rent.

Foreclosure Evictions

San Francisco tenants cannot be evicted due to foreclosure unless the landlord has a just cause for eviction or the tenant’s lease has ended. [5]

Tenant Buyout Agreements

A buyout agreement is when a landlord offers a tenant money to vacate their unit. Unlike just cause evictions, buyout agreements are less regulated. This can often lead to landlords pressuring or even threatening tenants to move out of their property.

San Francisco landlords must include a written disclosure of tenant rights before discussing a buyout agreement. This includes (but is not limited to) the right to decline the agreement or consult an attorney before making a decision. [6]

Non-Tenant Use

As of April 1, 2020, it is illegal for a person to use a rental property for non-tenant purposes—such as turning their unit into a place of business. [7] Exceptions to this law include any Non-Tenant Use agreements made before April 1, 2020, lawful short-term rentals, or certain 501(c)(3) organizations.

Tenant Harassment

Both state and local law make it illegal for a landlord to harass their tenants. Harassment includes (but is not limited to) refusing to make repairs, abusing the landlord’s right to entry, or pressuring a tenant into vacating their rental unit. [8]

Security Deposits

San Francisco landlords are required to pay interest on all security deposits held for a minimum of one year. At the end of the tenancy, the landlord must pay the tenant the accrued interest. [9]

Optional Lease Agreement Disclosures and Addendums in San Francisco

While not mandatory, landlords can add specific disclosures and addendums to their leases. This helps outline the responsibilities of the tenant and can prevent future liability issues.

Asbestos Disclosure

Since California is listed as the #1 state for asbestos-related deaths, landlords should include a disclosure stating if asbestos is present on the property. If asbestos is present, tenants should take precautions to minimize the chance of disturbing the asbestos fibers.

Pet Disclosure

With San Francisco being one of the most dog-friendly cities in the U.S., landlords may want to address the building’s pet policies. This disclosure should include whether or not pets are allowed on the property, the tenant’s responsibility to cover any pet-related damages, and any additional fees or restrictions surrounding pets.

Medical Marijuana Use Disclosure

Medical marijuana use is legal in San Francisco—which is why it’s important to disclose if it will be permitted on the property. California allows landlords to restrict marijuana usage to non-smoking methods only. They should also clarify if there are any designated smoking areas on the premises.

Summary of Required Lease Disclosures for the State of California

Sources

A landlord shall not endeavor to recover possession of a rental unit unless the tenant has failed to pay rent…habitually pays the rent late…

Each Eligible Tenant who receives a Covered No-Fault Eviction Notice, in addition to all rights under any other provision of law, shall be entitled to receive relocation expenses from the landlord, in the amounts specified in section.

For notices to vacate served on or after January 1, 2018, any landlord who, within five years of the date of service of the notice to quit, offers for rent or lease any unit in which the possession was recovered pursuant to Section 37.9 (a)(8) shall first offer the unit for rent or lease to the tenants displaced, by mailing a written offer to the address that the tenant has provided to the landlord.

On March 1 of each year, the Board shall publish the increase in the CPI for the preceding 12 months, as made available by the U.S. Department of Labor.

Any residential tenant who was in possession of a rental unit at the time of foreclosure may not be evicted by the person or entity who took title through foreclosure (see Section 37.9D (a)), except for just cause as provided in Section 37.9 and related provisions of Chapter 37 , or at the end of the tenant’s existing lease, whichever occurs later.

Prior to commencing Buyout Negotiations for a rental unit, the landlord shall provide each tenant in that rental unit a written disclosure, on a form developed and authorized by the Rent Board, that shall include the following…

Commencing April 1, 2020, it shall be unlawful to use a rental unit or allow a rental unit to be used for a Non-Tenant Use.

No landlord, and no agent, contractor, subcontractor or employee of the landlord, shall do any of the following, in bad faith or with ulterior motive or without honest intent…

A landlord who is subject to the provisions of Section 1950.5 of the California Civil Code shall pay simple interest on all security deposits held for at least one year for his/her tenants; provided, however, that this requirement shall not apply where the rent is assisted or subsidized by any government unit, agency or authority.

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