What are the new laws going into effect for 2026 that you need to know?
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.
This year, we have some new laws courtesy of the city and the state. At Gordon Property Management, we are ever-vigilant about staying one step ahead of all new legislation. So let’s take a look at them.
Quick Summary:
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Limits on Rental Increases
If your San Francisco rental property falls under the Rent Ordinance, the allowable increase is 1.4% until February 28, 2026.
Normally, we’d know the 2026/2027 allowable increase by now, but the federal government shutdown means there’s been a longer-than-usual wait on the Consumer Pricing Index (CPI) number, which impacts the Rent Board’s decision on how much rent can be raised in San Francisco. The last we heard, they’d be meeting on January 15, 2026, to decide on the allowable increase going forward.
When your rental property is exempt from the Rent Ordinance in San Francisco but falls under the statewide rent control laws under The Tenant Protection Act, the maximum rental increase is 6.3% until July 31, 2026.
Housing Development in San Francisco
The California Environmental Quality Act (CEQA) requires developers to evaluate whether their construction project would harm the environment. If so, changes need to be made to reduce the risk and impact. Apartment buildings included. For 2026, AB 130 exempts urban infill housing projects from that requirement. This is good news for developers and will hopefully add inventory quickly to the San Francisco housing supply.
Another bill (SB79) allows the development of apartment buildings up to seven stories tall if they’re within a quarter mile of specific train stations, which supporters believe will encourage housing development near light rail stations and busy bus stops. Many in San Francisco also hope this will encourage more public transport to alleviate traffic and parking problems.
Aid to Displaced Tenants in San Francisco
In mid-December, San Francisco’s Board of Supervisors voted unanimously to approve legislation that grants displaced lower-income renters up to three and a half years of rental assistance. Essentially, this means that tenants displaced by building demolition, fires, and renovations, would be entitled to rental assistance from developers when they earn 80% of the area’s median income or less. The bill also establishes additional criteria for developers to meet when they want to demolish all or part of a building where residents are in place. Notably, one of the criteria is that any newly developed building would have to be a rental project.
Appliances and San Francisco Rental Homes
Anyone renting out properties without refrigerators needs to do some appliance shopping. Thanks to AB628, all rental units in California must include a working stove and refrigerator. These are now part of the state’s habitability standards, and property owners will be responsible for repairs and replacements of the appliances.
California’s Social Security Tenant Protection Act of 2025
The government shutdown last year has inspired a lot of precautions, and one of those precautions is AB 246, or the Social Security Tenant Protection Act of 2025. This law would protect tenants who rely on Social Security payments from eviction, if funds are frozen due action or inaction from the federal government. As far as we can tell, social security payments were made without skipping a beat during the shutdown, but no one really knows might happen next, so this law means landlords have to sit tight if they’re waiting on a rental payment from a social security recipient who has not received their deposit through no fault of their own.
Security Deposit Reforms for San Francisco and California Property Owners
In recent years, we’ve faced new legislation that requires:
- Security deposits be no more than the equivalent of one month’s rent for many properties.
- Before-and-after photographs be provided when security deposits are being returned, withheld, or deducted from.
Now, AB414 is going into effect, and it allows landlords and tenants more options when it comes to managing security deposits. Landlords are now required to return deposits electronically when a renter asks for that method. The law also permits both parties to agree on alternative return arrangements, such as using the deposit to cover the final month’s rent. In addition, AB 414 mandates that in shared housing situations, each renter must receive their security deposit refund separately.
Disaster Duties of San Francisco Landlords
The number of weather-related issues and natural disasters have been notable throughout California in recent years. And so we have SB610, which protects tenants who are suffering the effects of such natural disasters. When a rental property becomes uninhabitable because of disaster debris, landlords are now required to:
- Remove any disaster-related debris from the property after the natural disaster.
- Avoid collecting rent and any other fees during mandatory evacuations.
- Return any rent that was prepaid as well as applicable security deposits.
- Provide renters the right to return to their home after repairs have been finished.
- Allow tenants to terminate their lease agreement without penalty.
You’ll be required to notify tenants once affected units are habitable again, which we assume you’d do anyway.
This is an overview of the most important legal changes that have arrived in San Francisco for 2026. Making a simple mistake is easy, and that’s why we recommend you get trusted property management through us.
Please contact us at Gordon Property Management for support in remaining compliant with San Francisco’s constantly evolving legal landscape.
