By Stephen K. Lightfoot II

April 2008 SPOSFI Newsletter

In order for property owners to keep up with increased costs— higher mortgage rates, property taxes, insurance, and operating expenses—and otherwise receives a fair return on investment, it is necessary to raise rents. In San Francisco, of course, many landlords’ ability to raise rents is limited by the San Francisco Residential Rent Stabilization & Arbitration Ordinance (SFRO). The SFRO sets forth limits on how much rents can be raised annually for all units covered by the rent ordinance. For example, under the SFRO, the annual allowable rent increase amount effective Mar. 1, 2008 through Feb. 28, 2009 is 2.0%.