Did You Know? All About Rent Board Fees
A Detailed Review of San Francisco’s Rent Board Fees
Rent Board fees are required for almost all multifamily properties.
Rent Board fees, like taxes, are a fact for almost all landlords in San Francisco. Here, we dive into some of the important minutiae that every landlord should know about these fees.
What are Rent Boards Fees and What Do They Pay For? How Much are Rent Board Fees?
The City of San Francisco charges an annual Rent Board fee per residential unit and single room occupancy (SRO) unit that is subject to rent control. This fee funds the operating costs of the Rent Board. The San Francisco Rent Board administers the city's rent control ordinance, mediates landlord-tenant disputes, and provides information about rental housing rules and regulations to the public.
For 2022-2023, the fee is $59 per apartment unit per year and $29.50 per residential hotel room (AKA. Single Room Occupancy (SRO) unit) per year.
How and When Does the City Collect Rent Board Fees?
Previously the Rent Board fee was included on the property tax bill. However, starting in 2021-2022 the Rent Board now collects the fee directly from property owners.
The Rent Board has set up a special website to pay for rent board fees and to learn more about the ordinance, linked here - https://sf.gov/pay-your-rent-board-fee
The fee must be paid no later than March 1st each year to avoid penalties.
Can I Passthrough Rent Board Fees to My Tenants?
Landlords may pass through 50% of the Rent Board fee to tenants. For 2022-2023, this is $29.50 per apartment and $14.75 per SRO unit.
The pass-through can be deducted from the annual interest payment on the tenant's security deposit. Alternatively, landlords can bill tenants separately for the fee.
Can a Landlord Retroactively Collect Rent Board Fee Passthroughs from Previous Years?
Yes, Landlords can "bank" Rent Board fees starting in November 1999 to collect in future years from tenants. Fees cannot be collected retroactively from years prior to 1999.
Are There Exemptions to the Rent Board Fee?
Some units are exempt from paying the Rent Board fee, such as owner-occupied units or government-regulated affordable housing. Below is a summary of situations that are exempt from Rent Board Fees:
Guest rooms exempted from rent control (Chapter 41)
Nonprofit cooperative units owned/occupied by residents
Hospital, convent, monastery, elder care facilities
College, high school, elementary school dormitories
Units rent-controlled by a government agency (except SFHA Section 8)
Owner-occupied units with homeowner's exemption on file
Units occupied by the owner that are not rented at any time (with affidavit)
What Happens if Rent Board Fees are not Paid?
Payment of the Rent Board Fee is due by March 1st annually. Missing this deadline incurs a 5% penalty, increasing by 5% each for April 1 and May 1, totaling 15%. If unpaid by June 1st, a notice is sent; 30 days are given to pay once noticed. Failure leads to referral to a collection agency with added fees.
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