New laws for San Francisco property managers take effect in 2026

Sarah Dennis-Phillips, Director of the San Francisco Planning Department
Sarah Dennis-Phillips, Director of the San Francisco Planning Department
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San Francisco property managers and landlords will face several new legal requirements in 2026, according to Gordon Property Management.

The changes include limits on rental increases, new housing development rules, expanded tenant protections, appliance requirements, security deposit reforms, and disaster response duties. These updates are expected to impact both property owners and tenants throughout the city.

According to Gordon Property Management, “San Francisco has some of the strictest tenant protections in the nation. It’s difficult to evict anyone, rent control is serious, and recent inspection requirements for buildings are ensuring your property is safer than ever before.” The company said that for properties under the Rent Ordinance, allowable rent increases are capped at 1.4% until February 28, 2026. For properties exempt from local ordinances but covered by statewide law, the maximum increase is set at 6.3% until July 31, 2026.

Housing development may accelerate due to two state bills: AB130 exempts urban infill housing projects from certain environmental reviews under the California Environmental Quality Act (CEQA), while SB79 allows apartment buildings up to seven stories within a quarter mile of specific train stations. Gordon Property Management said these measures aim to add inventory quickly and encourage public transport use.

Tenant protections have also expanded. Displaced lower-income renters may receive up to three-and-a-half years of rental assistance if their building is demolished or lost due to fire or renovation. New habitability standards require all California rentals to include working stoves and refrigerators; landlords must handle repairs or replacements as needed.

Security deposit reforms now allow electronic returns upon request and permit alternative arrangements such as applying deposits toward final rent payments. In shared housing situations, each renter must receive their refund separately. Disaster-related legislation requires landlords to remove debris after natural disasters, refrain from collecting rent during evacuations, return prepaid rents and deposits when necessary, notify tenants when units become habitable again, and allow lease termination without penalty.



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