rent controlled apartment and new tenants (San Francisco, South San Francisco: apartments, rental, neighborhood)

[rfung]

so I only recently learned that rent controlled apartments are like prized possessions. Are they really that good of a deal? is the only advantage the fact that you won't get big rent hikes year after year? cuz you're still paying market rate when you first join in? I'm only planning on being in SF for a year or two, so would I be correct in assuming I wouldn't benefit much from a rent controlled place?

[twins4lynn]

Yes, you do pay market value for an apartment (that is covered by rent control) but thereafter the rent increases are limited.

Here is a link with the allowable increases for the past 20 years or so. http://www.sfgov.org/site/uploadedfiles/rentboard/docs/documents/571%20Allowable%20Annual%20Increases%2008-09.pdf (broken link)

Good luck finding an apartment . I own a rent control apartment building in SF and have only had one vacancy since owning the building...and that's because the tenant died. The tenants have all lived here since rent control first came around, and aren't moving.

[rfung]

as it were, it seems I know a guy who might be moving out in a few months out of a rent controlled apartment (in SF). He mentioned that he might be able to put someone in the rental agreement as a roomate and then take himself out of the contract in order to keep the same price he was paying.

From reading sfgov.org rental control laws, the owner has to somehow communicate intention to increase rent within 60-90 days after all the original tenants left or the new tenant will inherit the old rent. How 'on top of things' are landlords (in this case, a property management company) as far as enforcing rent increases to market price? It's a 2bed/1bath fixer upper, and it would be a good deal for me to pick up at the old price, but at the market rate, I only plan on staying around for a year, two tops(but who knows right), so I wouldn't necessarily benefit from rent control, am I right to assume that?

(added) or is rent control like gold and I should just jump on it, no matter what as there isn't any real downside. (except that I'd have to put some elbow grease to make it 'my home' vs living elsewhere with roomates)

[sonarrat]

Originally Posted by rfung

as it were, it seems I know a guy who might be moving out in a few months out of a rent controlled apartment (in SF). He mentioned that he might be able to put someone in the rental agreement as a roomate and then take himself out of the contract in order to keep the same price he was paying.

If they'll do that without forcing a new lease, more power to you. If I was a landlord in that situation I'd stonewall as hard as I could.

From reading sfgov.org rental control laws, the owner has to somehow communicate intention to increase rent within 60-90 days after all the original tenants left or the new tenant will inherit the old rent. How 'on top of things' are landlords (in this case, a property management company) as far as enforcing rent increases to market price? It's a 2bed/1bath fixer upper, and it would be a good deal for me to pick up at the old price, but at the market rate, I only plan on staying around for a year, two tops(but who knows right), so I wouldn't necessarily benefit from rent control, am I right to assume that?

Yes, you are correct to assume that. But sometimes rent increases happen very quickly and precipitously. I've lived in a one-bedroom apartment in South San Francisco paying $1075 for about a year. It's not a bad place, but new tenants are now paying $1300 for the same thing and we have no rent control, so who knows when I might get slammed with that 20% price hike!! That's one of the big driving forces behind trying to get out of here and into my own place.

(added) or is rent control like gold and I should just jump on it, no matter what as there isn't any real downside. (except that I'd have to put some elbow grease to make it 'my home' vs living elsewhere with roomates)

In San Francisco you pretty much elbow grease it anyway. Landlords give you a lot more freedom and also a lot more responsibility than they do down the peninsula.

[rfung]

well, seems the guy already found a roomate-to-become-the-main-tenant when he leaves, with full disclosure to the property management company... rent will be calculated to market price in the neighborhood when he moves out, so that's a bit of a risk for whoever takes over.