My family is inheriting a completely paid off 3 bed, 1.5 bath house in Ingleside San Francisco, right next to the Oceanview neighborhood. We want to turn it into a rental property but are unfamiliar with the local market. I work in Manhattan and house hack in NJ while the rest of my family is spread out along the East Coast. I hoping to connect with other investors that own/manage properties in the area as I will be flying out in mid April to start interviewing property managers.
I have a ton of questions but here are the biggest:
- Are there any local laws or codes that I should be aware of when converting the property into a rental? Are there certain requirements of a rental? For example, in NJ the house needs to able to reach 70 degrees, fire extinguisher needs to be no more than 10 ft away from kitchen, etc.
- Are there annual property inspections?
- How much of an impact does a lack of a parking spot have on rent?
- Any major leasing items that I should be aware of that are unique to San Francisco?
- Any property management recommendations?
I look forward to hopefully connecting with some other San Francisco investors!
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I’m very familiar with the area - definitely a few things you should know, both about SF rental laws in general as well as the dynamics of that neighborhood. I also have a great property manager recommendation who lives in the area.
Hi James, welcome to being a landlord in San Francisco. Here are some answers to your questions.
1. Since this is a house and if you rent out the entire house under one lease, there is no rent control but there is just cause eviction. Yes, there are minimum heat requirements of 68 degrees for certain times of the day. The SF rent board will answer your questions, see this link https://sfrb.org/landlord-tenant-information
2. For SFH, there aren't annual property inspections that I am aware of.
3. Take a look at Craigslist and Hotpads and look at rental comps to see where they are priced at without a parking spot. There is an impact for sure but there are many homes and units rented without parking these days as Uber, Lyft and buses are abundant.
4. You'll need to wrap your head around just cause eviction. Thanks to Costa Hawkins, your SFH is not under rent control but is under just cause eviction. However, if the house has an in law or you rent multiple rooms under multiple leases for the house, it will be under rent control.
5. Yelp has a lot of good leasing agents and property managers.
Thanks @Johnson H. ! That is all really helpful information. Do you own properties in the area? Would love to connect when I fly over in a few weeks.
@Jamie M. thanks for the response! I will pm you for your property manager recommendation. Do you own properties in the area? Would love to connect.
It might make sense to sell that property & invest in an area with a better return. You might be able to trade that house for 20+ units somewhere else. We chose Sacramento. best of luck! jo.
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