Dear Property Owners,
Regardless of how you feel about the recent election on a national level, we want to take a moment to reflect on the San Francisco results and what they mean for you as a landlord. The outcomes of several key ballot measures and races have the potential to shift the landscape for property owners in our city in a more positive direction.
Here’s a breakdown of the major victories that will benefit landlords:
1. Prop 33 Defeated: A Relief for Landlords
One of the most crucial outcomes for landlords was the defeat of Proposition 33. This measure, if passed, would have imposed stricter limitations on the ability of landlords to adjust rent prices in certain circumstances, particularly targeting the ability to raise rents on new tenants who move in after long-term tenants vacate a unit. Additionally, Prop 33 would have expanded the scope of rent control measures to more properties, even those outside the current rent control framework.
By rejecting Prop 33, voters protected landlords from more stringent rent control measures that could have significantly reduced the ability to set market-rate rents, especially in a city like San Francisco where rental demand remains high. The defeat of Prop 33 ensures that existing rent control policies will remain in place, but without the expansion and added restrictions that could have made managing rental properties even more difficult.
2. Prop 34 Passed
As of Wednesday morning, with almost 9 million ballots tallied, 51.5% of voters supported Proposition 34, while 48.5% opposed it. The final results will be available when the election is certified on Dec. 13.
If it passes, Proposition 34 would require organizations participating in the federal drug discount program, such as the AIDS Healthcare Foundation, to use funds generated from the program for patient care rather than unrelated expenditures. While this proposition does not seem focused on housing, the main objective of the ballot measure was to prevent Michael Weinstein and the AIDS Healthcare Foundation from funding propositions such as the above mentioned 33, that affect landlord rights.
3. Political Shifts: Lurie, Mahmood, and Philhour
In the political arena, several key races saw victories that could change the course of policy development in San Francisco. Most notably, Matt Lurie’s win was a victory for those advocating for more balanced housing policies. Lurie’s platform focused on ensuring that property owners have a voice in housing decisions, particularly around zoning, building permits, and tenant rights.
Equally important were the victories of Bilal Mahmood and Marjan Philhour, who unseated incumbent supervisors, including the staunchly pro-tenant Dean Preston. These changes signal a shift toward a more moderate and pro-business approach in City Hall, opening the door for policy decisions that recognize the importance of supporting property owners in maintaining, improving, and developing housing in San Francisco.
What Does This Mean for You as a Landlord?
The combined effects of these victories signal a new era for San Francisco landlords. With Prop 33 defeated, Prop 34 passed, and a more moderate board of supervisors, we can expect:
- Fewer Regulatory Hurdles: A reduction in the overly burdensome regulations and litigation risks that have made managing properties in San Francisco more challenging in recent years.
- More Favorable Legislation: A shift toward more balanced legislation that recognizes both tenant needs and the rights of property owners, rather than a one-sided focus on tenant protections.
- Better Political Representation: With the election of more moderate figures like Lurie, Mahmood, and Philhour, we are likely to see policy discussions that consider the realities of the rental market, the challenges faced by landlords, and the need for more housing.
For many of us, this election has been a win—not just for landlords, but for the future of a more balanced and practical approach to housing in San Francisco. While there is still work to be done, these victories are a step in the right direction, and we can expect a more manageable and fair regulatory environment moving forward.
We’ll continue to monitor the ongoing changes and provide updates as the new policies take shape. Thank you for your continued commitment to providing quality housing in San Francisco.