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

Below, we will explain the rules governing rent-controlled units in San Francisco, how to determine if a rent increase is illegal, and the steps tenants can take to protect themselves against unlawful rent hikes.

Understanding San Francisco’s Rent Control Laws

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

What Is Rent Control, and Which Units Are Covered Under San Francisco’s Rent Ordinance?

Rent control in San Francisco limits the amount landlords can increase rent each year for tenants in certain residential units. It also provides protections against unjust evictions and ensures that tenants cannot be displaced through excessive price hikes.

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.

Even if a unit is not covered by San Francisco’s local rent control laws, tenants may still be protected under state-wide rent control, through the Tenant Protection Act of 2019 (AB 1482), which caps annual increases for many units not covered by local ordinances.

Legal Rent Increase Limits in Rent-Controlled Units

San Francisco’s rent control laws strictly limit how much landlords can increase rent each year for tenants in rent-controlled units. These limits ensure that long-term tenants are not suddenly priced out of their homes due to drastic rent hikes. The San Francisco Rent Ordinance dictates the maximum annual rent increase, with additional regulations governing pass-through costs and other circumstances under which landlords may seek to raise prices beyond the standard limit. 

Annual Allowable Rent Increases Under the Rent Ordinance

For rent-controlled units, landlords cannot raise rent arbitrarily. Instead, annual rent increases are limited by the percentage set by the San Francisco Rent Board.

• Allowable Increases: Each year, the Rent Board calculates the maximum allowable rent increase, which is based on inflation. For the 2025-2026 period, the maximum increase is 1.4%.
• Banking Unused Increases: Landlords who did not increase prices in prior years may be able to bank those unused increases and apply them later, subject to Board rules.
• Pass-Through Charges: In limited cases, landlords may pass along certain costs—such as capital improvement expenses or bond measures—but they must apply for Board approval before doing so.

Additional Pass-Through Costs and Surcharges: What Landlords Can Legally Charge

In some cases, landlords may impose extra charges beyond the annual rent increase, known as pass-through costs. These must be approved by the Board and follow strict guidelines.

Pass-through costs allow landlords to recover certain expenses related to building maintenance, repairs, or voter-approved fees. However, these do not count as permanent increases and are usually temporary surcharges. Common types of pass-through 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. This is slightly different from a Costa Hawkins rent increase because under 1.21 the owner need not show that the last original occupant has vacated, but only that they no longer live there as their principal residence. If approved, it permits the landlord to raise the rent tomarket rateCosta Hawkins Rent Increases: Additionally, if tenancy in a specific unit changes, landlords may also 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 pass-through 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 pass-through charges, tenants can file a petition with the Board to dispute them.

5 Common Illegal Rent Increases and How to Identify Them

San Francisco’s 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 San Francisco 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 and potentially have it rolled back or push back on the landlord based on the increase being unlawful.

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 San Francisco Rent Board.

3. Unapproved Pass-Through Charges or Added Fees

While landlords can apply certain pass-through 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 San Francisco 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 San Francisco Rent Ordinance protections. 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 an illegal increase on a non-rent-controlled unit, tenants can challenge the increase based on lease terms and state protections under AB 1482.

When to Contact a Tenant Rights Attorney

While many rent increase disputes can be handled through the San Francisco Rent Board, certain situations require legal representation. If a landlord violates rent control laws, refuses to comply with Board decisions, or retaliates against you, it may be time to seek legal help. You should immediately seek legal guidance if your landlord:

• Increases rent above the annual limit without Board approval
• Adds unauthorized fees or surcharges
• Backdates an increase or demands retroactive payments
• Fails to provide proper notice before raising rent
• Attempts to use a rent increase as a tool for eviction or harassment

Legal Options If You Receive an Eviction Notice Following a Rent Dispute

Some landlords retaliate against tenants who challenge rent increases by issuing eviction notices. This is illegal under San Francisco’s Rent Ordinance and California state law. If you receive an eviction notice after disputing a rent hike, do not move out immediately—consult an attorney first.

With your attorney’s help, review the notice carefully to see if the eviction falls under San Francisco’s just cause eviction laws. If the notice is illegal, your attorney will help you determine the best course of action to fight the eviction and negotiate a resolution to keep you in your home.

Professional Legal Counsel for Illegal Rent Increases 

Tenants in San Francisco 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.