The allowed rent increase percentage in San Francisco is 3.6%.
The percentage is effective March 1, 2023 through February 29, 2024.
Under the San Francisco Rent Ordinance, a landlord can only increase a tenant’s rent by a certain percentage once every 12 months. Find out if San Francisco's rental laws apply to you.
The Rent Board calculates the allowed rent increase percentage each year.
There is no limit on how much rent a landlord may first charge a tenant when renting an empty unit that is covered by rent control.Back to top
Get a rent increase license
A landlord must get a rent increase license before imposing annual allowable and/or banked rent increases on a tenant.
To get a rent increase license, a landlord must first report into the Rent Board Housing Inventory.
This is effective July 1, 2022 (or March 1, 2023 for condominiums and buildings with 1-9 residential units).Back to top
3.6% current allowed rent increase
Effective March 1, 2023, the allowed rent increase percentage is 3.6%. The percentage is effective through February 29, 2024.
This amount is based on 60% of the increase in the Consumer Price Index for All Urban Consumers in the Bay Area.Back to top
Calculate the rent increase amount
To calculate the dollar amount of the 3.6% annual rent increase, multiply the tenant's base rent by .036.
For example, if the tenant's base rent is $2,000.00, the annual increase would be: $2,000.00 x .036 = $72.00.
The tenant's new base rent would be $2,072.00 ($2,000.00 + $72.00).Back to top
Increase on base rent only
Landlords must calculate the rent increase on the tenant’s base rent only. This includes any housing services like parking or storage. It does not include any temporary passthroughs or fluctuating charges.
Rent increases cannot be rounded up to the nearest dollar.Back to top
Timing and anniversary date
A landlord can impose the first annual increase 12 months after the date the tenant’s lease began.
Once a landlord has increased a tenant’s rent, the date of the increase becomes known as the tenant’s “anniversary date.” The landlord cannot increase the rent again until at least 12 months later.
If a landlord increases the rent more than 12 months later, the effective date of the increase becomes the tenant’s new anniversary date. The landlord must wait at least 12 months to increase the rent again.Back to top
A landlord that does not increase a tenant’s rent on their anniversary date, can save (or “bank”) the increase and add it later.Back to top
A landlord must give a tenant:
- 30-day written notice of the proposed rent increase
- 90-day written notice if the increase (either by itself or combined with another increase in the same year) is more than 10%
If the notice is mailed, the landlord must give the tenant 5 more days.
The rent increase notice should include the:
- Dollar amount of the increase
- Percentage amount of the increase
- Date the increase will go into effect
The landlord should use the percentage that will be in effect on the date of the increase, not the percentage in effect on the date they serve the notice.Back to top
A landlord cannot charge additional rent simply because a new (or additional) roommate has moved into a unit with the existing tenant. This is an unlawful rent increase, even if the lease or rental agreement provides for the additional charge.Back to top
Landlord petitions and passthroughs
Tags: Topic 050
Back to top