If your San Francisco rental property is subject to the Rent Board Fee, there are some changes to how that fee is billed and paid. These changes are effective in the 2021 – 2022 tax year, and we want to bring them to your attention in our blog today.
At Gordon Property Management, we know that renting out property in San Francisco can seem risky, especially when it comes to navigating some of the strictest rental laws in the country. If you ever have any questions about what’s required of you, please don’t hesitate to reach out to us.
Purpose of the Rent Board Fee
As you probably know, the City imposes a fee on residential rental property owners to fund the Rent Board’s administration of services. It’s the Rent Board that enforces the Rent Ordinance and in previous years, that fee was collected with an extra charge that you likely found on your property tax statements. If you didn’t pay the Rent Board fee, you were penalized in the same way you’d be penalized for neglecting to pay your property taxes.
San Francisco Rent Board Changes for 2021 – 2022
Effective in tax year 2021-2022, Administrative Code Section 37A was amended pursuant to Ordinance No. 134-21. The Rent Board Fee is being removed from the property tax billing statement and instead of having that show up on your property taxes, the Rent Board will be required to issue a separate invoice for that fee.
If the fee is not paid by March 1 of each tax year, the Rent Board will add a five percent penalty to the amount of the fee that is owed. If the fee has still not been paid by April 1, there will be an additional five percent penalty. The same will occur on May 1 if the fee has not been paid – there will be yet another five percent fee.
When the fee remains outstanding as of June 1, the Rent Board will refer the matter to the Bureau of Delinquent Revenue.
No changes have been made to the methodology used to calculate the Fee, or the type of units subject to, or exempt from, payment of the Fee.
Requesting Exemption from the Rent Board Fee
If you believe you have a unit or units that are not subject to the Rent Board Fee, you will need to submit a formal request for exemption from the Rent Board fee between November 15 and December 15.
The Rent Board’s new online portal will be available through their website soon, and that’s where you’ll be able to file an online exemption request. If you don’t have an email address, you can request a paper exemption form. However, paper exemption requests will not be accepted by email.
If you’re not sure about what this means for your property or you need some help filing for an exemption or paying your Rent Board fee, please contact us at Gordon Property Management. We are here to serve as your San Francisco property management resource.