Rentals in San Francisco are some of the most expensive in the entire country, even compared to major metropolitan areas like Washington D.C. or New York City. San Francisco is a fantastic place to live, with beautiful parks and a rich history. There is always something going on, so it’s easy to see why the city is so enticing.
Before the pandemic, rent prices in San Francisco were what could only be described as astronomical. A single-family home in SF was five times the national average. It’s a simple supply and demand case as more and more people were trying to move into the Bay Area. However, this trend drastically changed when the pandemic hit, and people no longer needed to live and work in an expensive urban metropolis.
From one-bedroom apartments to single-family homes, the cost of rent in San Francisco has significantly plummeted since the onset of the pandemic. While the city exodus might worry landlords needing to pay mortgages, rates, insurance, and other associated fees, these vacancies allow the opportunity of getting new tenants in the strict rental market. However, tenant screening is crucial, and we are here to tell you why.
Suppose you find yourself with difficult tenants that are not doing anything criminal but cause more wear and tear to your property than could be reasonably expected. This will inevitably increase your maintenance and repair bills and may also affect the relationship you have with your neighbors. Moreover, if rent is habitually late, this can put you in tricky situations with your mortgage lender and make your finances suffer.
Removing a tenant from your rental property in San Francisco can be a stressful, lengthy, and often expensive ordeal. Although you can remove a tenant for just cause, proving this just cause can be challenging. As such, it is instrumental to find the best tenants from the beginning.
There are ways to remove tenants from a rental property in San Francisco legally, but it will inevitably be an expensive process. Even if you want to move into your own home, you’ll need to follow the letter of the law to avoid getting sued, and this will mean legal expenses. You will also need to pay each and every occupied tenant a moving allowance up to a maximum of $15,000 in total. In addition, you’ll need to occupy the premises for three years before legally renting it out to other tenants.
Selling your rented San Francisco home is even trickier. Sitting tenants occupying the property for more than 12 months have a right to stay indefinitely unless you can find just cause to remove them. Not only will this be expensive, but laws favor the side of tenants, so it is crucial to get legal advice from the start.
While there is money to be made in the rental market in San Francisco, it is vital to understand your long-term objectives for your rental property. Spending the time screening and finding the right kind of tenants, in the beginning, can save you years of trouble in the long run.