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Farrell Real Estate Investments

Farrell Real Estate Investments

Your Real Estate Specialists

Local Info

San Francisco:

Current Topics include: 

  • Short-Term Residential Rental Registry
  • New Tenant Buyout Legislation  

Short-Term Residential Rental Registry

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    Applications Accepted Beginning February 2nd, 2015

For more information visit: 
http://www.sf-planning.org/index.aspx?page=4004 

What is the SF Short-Term Residential Rental Ordinance?
On October 27th, 2014 Mayor Lee signed San Francisco Ordinance No. 218-14, amending the Administrative and Planning Codes to allow some residential properties to conduct short-term residential rentals without violating the requirements of the City’s Residential Unit Conversion and Demolition Ordinance (Administrative Code Chapter 41A) or the Planning Code. A short-term residential rental is a rental of all or a portion of your residential unit for periods of less than 30 nights. This law will become effective on February 1st, 2015. At that time, eligible Permanent Residents (owners and tenants) will be able to apply to place their residential unit on the Planning Department’s Short-Term Residential Rental Registry.

What can I do with a Short-Term Residential Rental Registration?
With a valid Short-Term Residential Rental Registration you may rent your primary residential unit for periods of less than 30 nights without violating the requirements of the City’s Residential Unit Conversion and Demolition Ordinance (Administrative Code Chapter 41A) or the Planning Code. This includes renting a portion or your entire unit while you are also present for an unlimited number of nights per year and renting a portion or your entire unit while you are not present for a maximum of 90 nights per year.

How can I apply to be on the Registry?
Short-Term Residential Rental Applications will be made available online and at the Planning Information Center (PIC) located at the ground floor of 1660 Mission Street.
To register your unit, you will need to make an appointment with the San Francisco Planning Department to meet with staff and submit your application. Applications must be filed in person by the permanent resident whose name will appear on the registry. Applications may not be filed by representatives or agents. Drop-ins or dropped off applications will not be accepted. The Planning Department will begin conducting intake appointments on Monday, February 2nd. To schedule an intake appointment, please call 415-575-9179 after Monday, January 26th.

You may not rent your unit (in all or a portion) as a short-term residential rental until you have received a Short-Term Residential Rental Registration number from the Planning Department.

Who is eligible to register?
In order to conduct a short-term residential rental you must meet all of the following conditions:

  • You must be the Permanent Resident (owner or tenant) of the residential unit that you wish to rent short-term. This means you must live in that specific residential unit for at least 275 nights of any given calendar year. If you are a new resident you must have occupied this specific unit for at least 60 consecutive days prior to your application. If you own a multi-unit building, you may only register the specific residential unit in which you reside.

  • You must obtain liability insurance in the amount of no less than $500,000 or provide proof that liability coverage in an equal or higher amount is being provided by any and all hosting platforms through which you will rent your unit.

  • Your residential unit must not have any outstanding Planning, Building, Housing, Fire, Health, Police, or other applicable City code violations.  

  • You may only register one residential unit.

  • Please note that residential units that are subject to the Inclusionary Affordable Housing Program and residential units designated as below market rate (BMR) or income-restricted under City, state, or federal law are not eligible to register.

  • Important note for tenants:  The Planning Department strongly recommends that you review your lease before submitting an application. The registration of your residential  unit on the Short-Term Residential Rental Registry does not override any lease agreements, homeowner’s association bylaws, Covenants, Conditions & Restrictions (CC&Rs), or any other agreement, law, or regulations that prohibit subletting or use of your unit as a short-term residential rental.

    Is there an application fee?
    Yes. The fee for the initial application is $50.00. Your registration will remain valid for two years (pending the registered unit remains in good standing)

    What can I do and not do once I have obtained a Short-Term Residential Rental Registration Number?

  • Once you have obtained a Short-Term Residential Rental Registration Number, you may use your residential unit as a short-term residential rental without violating Administrative Code Chapter 41A or the Planning Code  under the following conditions:

  • You may rent the residential unit (in all or a portion) while you are not present for a maximum of 90 nights per calendar year.

  • You may rent a portion of the residential unit while you are present for an unlimited number of nights per year.

  • You may advertise your residential unit on any and all hosting platforms under the condition that you list your registration number at the top of all listings' descriptions.

    What you may not do with your Primary Residence registered as a Short-Term Residential Rental:

  • You may not rent your residential unit or a portion thereof for more than 90 nights per calendar year while you are not also present during the time of the guests’ stay.

  • You may not rent illegal residential units or unpermitted spaces associated with your property.

  • If you are a tenant, you may not make more than your monthly rent from your short-term rental fees charged to guests.

** Information obtained by the San Francisco Planning Department. Only informational **

New Tenant Buyout Legislation (retroactive Oct 31,2014):

As of March 7, 2015, San Francisco will adopt a new ordinance regulating “Buyout Agreements” (agreements by which a landlord pays a tenant money or other consideration to vacate a rental unit) and “Buyout Negotiations” (any discussion or bargaining, oral or written, between a landlord and tenant regarding the possibility of entering into a Buyout Agreement) for residential rental properties which are subject to local rent control laws.

The new law is operative March 7, 2015, but it has a retroactive effect which precludes condo conversions for properties where (a) Buyout Agreements were entered on or after October 31, 2014 and (b) involved 2 or more tenants (even in the same unit), or any tenant of a “protected class” as defined in the ordinance. Note that local law presently (a) allows conversion of certain 2 residential unit properties where each unit is owner-occupied by a separate owner; (b) otherwise disallows conversion of 2–6 residential unit buildings unless approval was sought under the 2013 “Expedited Conversion” Program; and (c) now prohibits conversion of 5+ residential unit properties. 

The above is only a partial summary of the new law (CCSF Administrative Code §37.9E & Subdivision Code §1396(e)(4)).

The full text can be found at: https://sfgov.legistar.com/View.ashx?M=F&ID=3320331&GUID=B92B8C60-2915-4AC5-A262-5C379255863E.

**Information obtained by the San Francisco Association of Realtors and is for informational purposes only. 
 

 

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