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Your Legal Rights When Facing an Illegal Rent Increase in San Francisco

Your Legal Rights When Facing an Illegal Rent Increase in San Francisco

Your Legal Rights When Facing an Illegal Rent Increase in San Francisco

14Apr

Your Legal Rights When Facing an Illegal Rent Increase in San Francisco

In the Bay Area's highly competitive rental market, cities like San Francisco, Oakland, and Berkeley offer some of the strongest tenant protections in the country. Rent control ordinances are meant to preserve housing affordability and prevent displacement, but not all landlords comply with the law. If your rent has suddenly jumped without warning, or if you're facing new charges that don't seem justified, you may be experiencing an illegal rent increase.

At Wolford Wayne LLP, we exclusively represent tenants. We're here to help you understand your legal protections, recognize unlawful increases, and take action through Rent Board proceedings or legal remedies. This guide will walk you through your rights and responsibilities under local and state rent control laws.

What Is Rent Control?

Rent control is a set of local laws that limit how much a landlord can raise rent annually and under what conditions a tenant can be evicted. The goal is to promote housing stability and prevent unjust rent hikes. Rent control laws also typically require landlords to justify increases beyond standard limits and to maintain habitable living conditions.

The Bay Area is unique in having multiple overlapping systems of rent control. Local ordinances in San Francisco, Oakland, and Berkeley often provide stronger protections than state law. Tenants need to understand which law applies and how to invoke it. Let's break down some of these laws by city:

San Francisco

San Francisco's Rent Ordinance, administered by the San Francisco Rent Board, governs the amount landlords can increase rent and provides tenants with legal mechanisms to challenge unlawful rent increases. 

San Francisco's regulations apply to multi-family properties constructed before June 13, 1979, ensuring that these older buildings, which house a significant portion of the city's tenants, are subject to controlled rent adjustments.

Not all rental units in San Francisco fall under the Rent Ordinance. The primary determinant is when the building was constructed. Buildings covered under the ordinance include:

  • Multi-unit buildings constructed before June 13, 1979: The majority of rental apartments in San Francisco fall into this category, making them subject to strict rent increase limits.
  • Some in-law units and accessory dwelling units (ADUs): If they were built before 1979 and are part of a larger rent-controlled building, they may qualify for rent control protections. Additionally, in-law units built without a separate certificate of occupancy are always rent controlled regardless of when they were built, as are new-build ADUs.
  • Single-family homes and condominiums where the tenant moved in before 1996: Under the Costa-Hawkins Rental Housing Act, single-family homes and condos are typically exempt from rent control. However, if a tenant moved in before January 1, 1996 and continues to live there, that tenant may still be covered.

However, there are still many buildings in San Francisco that are not rent-controlled, including:

  • Buildings constructed after June 13, 1979: Newer apartment buildings are not subject to the Rent Ordinance's rent increase limits.
  • Single-family homes and condominiums: These buildings are exempt unless a lease was in place before 1996 with rent control protections.
  • Units in Project Based Section 8 Housing or managed by another government program: As these units' rents are managed under another government program, they are not covered by rent control laws.

The Rent Board enforces these rules and sets the annual allowable rent increase. The ordinance also limits evictions to "just cause" and governs passthrough charges for expenses like capital improvements or bond measures.

Oakland

Oakland's Rent Adjustment Program covers rental units built before January 1, 1983, excluding single-family homes and newer units. The annual rent increase is tied to the Consumer Price Index (CPI), and landlords must petition for increases above the CPI rate. Oakland also enforces just cause eviction protections under its own ordinance.

Berkeley

Berkeley's Rent Stabilization and Eviction for Good Cause Ordinance protects tenants in most multi-unit properties built before June 30, 1980. Like San Francisco and Oakland, the city uses a CPI formula to calculate annual increases. It maintains a Rent Stabilization Board to adjudicate disputes.

California's Statewide Rent Control (AB 1482)

For units not covered by local rent control, California's Tenant Protection Act of 2019 (AB 1482) establishes limits on rent increases and prohibits no-fault evictions. The law applies to most apartments older than 15 years, excluding single-family homes unless owned by corporate landlords. For 2025–2026, the statewide cap is 8.8% (5% + CPI). Local ordinances override AB 1482 if they offer stronger tenant protections.

How These Limits Affect You

Understanding these limits is vital for tenants in these cities. They not only offer a shield against potential financial strain but also ensure that rent increases are fair and justifiable. Landlords are required to adhere to these guidelines strictly, and any deviation can be challenged legally.

Renters facing increases above these thresholds have the right to dispute such hikes and seek legal recourse. This is where understanding your rights and the specifics of your city's ordinance becomes crucial. Suppose your landlord imposes an increase that exceeds the allowable percentage. In that case, the hike is an illegal action that can be contested with the support of experienced tenant rights attorneys, such as those at Wolford Wayne, LLP.

Legal Rent Increases: How They Work

In rent-controlled units, landlords are prohibited from arbitrarily raising the rent. Cities like San Francisco, Oakland, and Berkeley set annual rent increase limits tied to inflation, and landlords must follow specific legal procedures when issuing an increase. Understanding these rules helps tenants identify when a rent hike is legitimate and when it crosses the line into illegality.

Annual Allowable Rent Increases by City

Each city sets its own maximum annual rent increase based on changes in the Consumer Price Index (CPI):

  • San Francisco: As of March 1, 2025, through February 28, 2026, the allowable increase is 1.4%.
  • Oakland: The annual allowable rent increase for covered units is based on the CPI for the Bay Area. For 2025-2026, this is approximately 0.8 %, though exact percentages vary and must be confirmed through Oakland's Rent Adjustment Program.
  • Berkeley: The Rent Stabilization Board calculates the annual general adjustment based on CPI. For the 2025 calendar year, the allowable increase is 2.1%.

Each city ties its allowable increase to inflation using CPI data from the prior year. For example, if the CPI increases by 4%, and the ordinance allows for 65% of CPI to be used, then the allowable increase would be 2.6%. Rent boards use these formulas to ensure tenants are not priced out by economic shifts.

Proper Notice Requirements

Landlords must provide written notice before raising rent. Under California law:

  • 30 days' notice is required for increases under 10%.
  • 90 days' notice is required for increases of 10% or more (combined with any increases in the prior 12 months).
  • Notices must include the dollar amount of the new rent, the percentage of the increase, and the effective date.

All rent increase notices must be in writing, served properly, and delivered with adequate notice. Tenants should retain copies of any rent increase notices, rental agreements, and correspondence with the landlord. If you suspect the increase violates rent control laws, these documents will be essential in challenging the action before the Rent Board.

Understanding Passthrough Charges and Surcharges

Passthrough costs enable landlords to recover specific expenses associated with building maintenance, repairs, or voter-approved fees. However, these do not count as permanent increases and are usually temporary surcharges. Common types of passthrough charges include:

    • Operating and Maintenance (O&M) Passthrough: Landlords may apply for a temporary increase to recover increased operating expenses (e.g., higher property taxes, insurance, or maintenance costs). The Board must review and approve this request.
    • Capital Improvement Passthrough: If a landlord completes major renovations that benefit the building (such as replacing a roof, upgrading plumbing, or seismic retrofitting), they may apply to pass a portion of the cost onto tenants. However, this surcharge is temporary and must meet strict Board criteria.
    • Bond Measure Passthroughs: Some voter-approved local bonds (such as school or infrastructure bonds) allow landlords to recover a small portion of the tax increase from tenants. These fees are typically minimal (a few dollars per month per unit).
    • Petitioning the Rent Board for Hardship: If a landlord is not earning a "fair return" on their property, they may petition the Rent Board for a larger increase. These petitions are rare and highly scrutinized.
    • Banking Past Rent Increases: If a landlord did not apply the full rent increase in prior years, they may be able to "bank" those unused increases and impose them later. However, they must follow Board rules, and tenants can challenge excessive banking increases.
    • 1.21 Petitions: In San Francisco, a 1.21 Petition refers to a request filed by a landlord with the Rent Board under Rent Ordinance Rule 1.21. This petition allows a landlord to increase rent if the unit is no longer a tenant's principal place of residence. 
  • Costa Hawkins Rent Increases: If tenancy in a specific unit changes, landlords may have the right to adjust monthly rents. If an original tenant moves out, the landlord may be able to reset the price to market rate under the Costa-Hawkins Rental Housing Act on any subsequent occupants. However, this rule is complex and requires legal review.

However, while these increases are permitted, there are still restrictions on passthrough charges. Landlords may not:

  • Add arbitrary fees that do not fall under approved categories.
  • Pass through personal expenses (such as legal fees or property management costs).
  • Charge tenants for capital improvements or O&M increases without Rent Board approval.
  • Charge tenants without proper motive or the opportunity to dispute the charges.

If a landlord imposes unauthorized or excessive passthrough charges, tenants can file a petition with the Board to dispute them.

Common Illegal Rent Increases and How to Identify Them

Bay Area rent control laws provide essential protections for tenants, but that doesn't stop some landlords from attempting to impose unlawful rent increases. Whether due to misunderstanding the law or intentional exploitation, illegal rent hikes are a significant issue in the city's rental market. Tenants should be aware of common tactics landlords use to raise rents improperly and know how to recognize when an increase violates local regulations. Five of the most common illegal increases include:

1. Rent Increases That Exceed Legal Limits

The most frequent type of illegal rent increase occurs when a landlord raises rent beyond the maximum allowable annual percentage set by the Rent Board. Any increase above this limit without Board approval is illegal.

If a tenant receives a notice of an increase exceeding the allowable percentage, they can file a petition with the Rent Board to challenge the increase. They potentially could get the Board to order the illegal rent hike rolled back or otherwise push back on the landlord’s unlawful actions.

2. Retroactive or Backdated Rent Hikes

Another illegal practice is when landlords attempt to impose retroactive increases, meaning they try to collect additional funds for past months. This typically happens when a landlord claims they "forgot" to apply an increase earlier or when they attempt to charge tenants extra after realizing they weren't collecting as much money as they could have. This is distinct from "banked" increases because the landlord is attempting to raise rent on months already paid, instead of announcing an increase in rent going forward. 

If a landlord attempts to apply an increase retroactively, tenants are not obligated to pay it and can file a complaint with the Rent Board.

3. Unapproved Passthrough Charges or Added Fees

While landlords can apply certain passthrough costs, such as capital improvement surcharges or operating expenses, these charges must be approved by the Board before being passed on to tenants. In some cases, landlords attempt to charge additional fees without proper authorization, leading to unlawful increases.

Tenants who receive unexpected new charges on their rent bills should demand an explanation from the landlord and check with the Rent Board to see if the charge is legal. If it is not, tenants can file a petition to dispute the charge.

4. Rent Increases After an Ownership Change Without Proper Notification

When a building changes ownership, the new landlord must comply with existing rent control laws and honor the terms of all current leases. Some landlords, however, attempt to impose rent increases immediately after taking over, falsely claiming that a change in ownership allows them to reset rental rates.

A change in ownership does not eliminate protections under the San Francisco Rent Ordinance. Tenants who receive an illegal rent increase after a new landlord takes over should report the issue to the Rent Board and seek legal assistance if necessary.

5. Demands for Rent Increases on Non-Rent-Controlled Units That Violate Lease Terms

While market-rate units are not subject to the city's rent control laws, landlords must still abide by the terms of the lease agreement and comply with California's tenant protection laws. Some landlords attempt to raise rent mid-lease or impose excessive increases that violate state law.

If a landlord attempts to increase rent illegally on a non-rent-controlled unit, tenants can challenge the increase based on lease terms and state protections under AB 1482.

What to Do If You Receive an Illegal Rent Increase

If you receive a rent increase that seems too high or improperly issued, don't assume it's legal. Illegal increases are common, even in rent-controlled units. Here's what you should do:

Documenting the Increase

Start by gathering all relevant documents:

  • The rent increase notice
  • Your current lease
  • Proof of past rent payments
  • Any written communication with your landlord

Take note of when you received the notice, how it was delivered, and whether it complies with required timeframes.

Researching Legal Limits and Exemptions

Check whether your unit is covered by local rent control or state law (AB 1482). Visit your city's Rent Board website or contact a tenant attorney to determine:

  • Whether your building is subject to rent control
  • The current year's allowable rent increase
  • Whether any claimed pass-throughs were approved

Requesting Clarification from the Landlord

If you believe the rent increase exceeds legal limits or lacks justification, request a written explanation. Ask the landlord to specify:

  • The legal basis for the increase
  • Whether the increase includes any passthrough charges
  • Whether Rent Board approval was obtained

Filing a Petition with the Rent Board

If the landlord won't correct the issue, you can file a petition challenging the rent increase. Most cities provide a specific process through their Rent Board:

  • San Francisco: File a petition for unlawful rent increase or request a lawful rent determination.
  • Oakland: Submit a tenant response through the Rent Adjustment Program.
  • Berkeley: File a rent overcharge petition or request a rent ceiling adjustment.

Legal Remedies and Rent Board Proceedings

The Rent Board is the frontline venue for resolving rent disputes in many Bay Area cities. These administrative bodies provide a faster and more tenant-friendly process than the courts and often issue binding decisions.

Overview of Rent Board Process

Once a petition is filed, the Rent Board will schedule a hearing. Both parties may present evidence and testimony. Afterward, a hearing officer will issue a decision, which can include rent rollbacks, refunds, and other remedies.

Rent Board hearings are typically informal but structured:

  • Both tenant and landlord can present documents and witnesses.
  • The hearing officer may ask questions and request additional information.
  • Decisions are issued in writing, usually within a few weeks.

How Wolford Wayne Represents Tenants Before the Rent Board

Wolford Wayne LLP regularly appears before Rent Boards in San Francisco, Oakland, and Berkeley. We help tenants:

  • Gather evidence and build a strong case
  • Respond to 1.21 and Costa-Hawkins petitions
  • Challenge excessive increases and win rent rollbacks
  • Navigate procedural hurdles and appeal unfavorable decisions

We understand the nuances of each city's rent laws and advocate effectively for our clients' rights.

Eviction Threats After Rent Disputes

Some landlords attempt to sidestep rent control by evicting tenants who challenge illegal increases. Fortunately, most Bay Area cities require "just cause" for eviction, and retaliation is strictly prohibited.

Just Cause Eviction Protections

Under local ordinances and AB 1482, a landlord must have a legally valid reason to evict a tenant. Examples include:

  • Nonpayment of rent
  • Breach of lease terms
  • Owner move-in (under certain conditions)

Raising rent beyond the legal limit and then using a refusal to pay as grounds for eviction is not permitted under just cause laws.

Retaliatory Eviction After Rent Increase Challenge

California law prohibits landlords from retaliating against tenants who:

  • File complaints with the Rent Board
  • Report code violations
  • Challenge rent increases or assert other legal rights

If an eviction notice is served within 180 days of a protected action, courts may presume the eviction is retaliatory, placing the burden on the landlord to prove otherwise.

Legal Process for Disputing Wrongful Eviction Notices

If you receive a notice to quit or a 3-day notice following a rent dispute:

  1. Do not leave your unit immediately.
  2. Consult with a tenant attorney right away.
  3. Respond within the required legal timeframe (usually five business days).
  4. Prepare for court if needed.

The court will examine whether the eviction is lawful and whether the tenant's rights were violated.

When to Seek Emergency Legal Help

You should contact a tenant attorney immediately if:

  • You're being evicted after challenging a rent increase.
  • Your landlord refuses to honor a Rent Board decision.
  • You are facing harassment or threats tied to a rent dispute.

At Wolford Wayne LLP, we provide emergency consultations for tenants at risk of displacement due to retaliatory or unlawful landlord behavior. We're here to protect your right to safe, affordable housing.

Why Choose Wolford Wayne LLP

We are tenant advocates who understand Bay Area rent laws inside and out. Our attorneys have successfully represented hundreds of renters in San Francisco, Oakland, and Berkeley before the Rent Board and in court. We help tenants:

  • Challenge illegal rent increases
  • Navigate Rent Board hearings
  • Stop retaliatory evictions
  • Obtain rent rollbacks or damages
  • Understand their rights under local and state law

Our firm exclusively represents tenants; never landlords. We are committed to promoting housing justice and empowering tenants.

Professional Legal Counsel for Illegal Rent Increases 

Tenants in the Bay Area have strong protections under rent control laws, but illegal rent increases still occur. Understanding the legal increase limits, knowing how to challenge unlawful hikes, and seeking legal help when necessary are crucial steps in ensuring fair treatment. If you are facing an illegal rent increase, Wolford Wayne LLP can help protect your rights and fight back against unlawful landlord practices. Contact our office today to discuss your situation.

FAQs: Rent Control and Rent Increases

Can my landlord raise the rent in the middle of my lease?

Not if you're within a fixed-term lease. Even in exempt units, landlords must honor lease terms and provide proper notice.

How do I know if my unit is rent-controlled?

Check when the building was built and if it is a multi-family building. Contact your city's Rent Board for confirmation or speak to a tenant attorney.

What if I already paid an illegal increase?

You may be entitled to a refund. The Rent Board can order the landlord to return overpayments.

Can I be evicted for refusing to pay an illegal increase?

No. Refusing an unlawful increase is not just cause for eviction. If you're threatened with eviction, contact a lawyer immediately.

How long does a Rent Board case take?

Hearings are typically scheduled within a few months of filing. Emergency matters may be expedited.

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