San Francisco Temporary Rent Reduction Agreement

Posted on April 11th, 2021

Q. My long-time tenant recently discovered that a tenant newly placed in the lobby was paying $200 less than he was paying in the monthly rent, so he asked for a rent reduction. Can I accept a temporary rent reduction? How about offering him a discount instead? Even with dark facts, you can take an aggressive approach. The outgoing principal tenant is trying to hand over the rent control staff to his former tenant, but there is also no need to let him go through the contract. The threat of increased market class rents (where he is held responsible for the insolvency of his former roommates) could inspire all parties to start their own leases again. Here, too, it is a bit new to separate notions like this. You would also need the right “dominant reason” to prove your case – that is, you impose valid provisions of the lease that deal with safety and legitimate use, and you do not use evacuation as an excuse to re-establish a partial market unit. (Good facts: you rent space to strangers for a profit; Bad facts: they just forgot to tell you about their new Kia Sorento all the time.) In the end, it would be a difficult action to win, but also a good faith lawsuit will win you bottomless, since tenants can legitimately give up their rights in the settlement of an illegal civil liability action. Forced evictions for reasons other than non-payment can only be prosecuted if necessary due to violence, the threat of violence, health/security issues or the Ellis Act. However, this limitation on evictions expires on 30 November 2020.

As of December 1, forced evictions that are not based on unpaid rents can be carried out subject to the city`s rent regulations. In comparison, the reduction would be sustainable if it were “due to market conditions.” one. The law is very clear on this issue and was recently put into circulation by the Tenants` Council in the face of the COVID 19 crisis: a landlord who grants a rent reduction because of market conditions makes this reduction sustainable. This means that future rent increases will have to be based on the amount that will become the new base rent. In addition, it is likely not possible for the landowner to withdraw or cancel the reduction at a later date. Please note that the rent is still due – it has not been allocated or cancelled. You should respond to a notice of non-payment from a landlord within 15 days and pay at least 25% of the monthly rent between September 1 and January 31. You can pay 25% per month or pay a lump sum payment before January 31. Between the health crisis and now in much of the Bay Area, the eviction moratoriums are in effect: “No tenant should move now because they cannot pay rent. A large percentage of the tenants who call us now don`t know it,” said Sherburn-Zimmer. Discounts and incentives are also very dangerous when they prevent tenants from going into a declining market or attracting new tenants to unattractive rents. Twenty years ago, a large owner of the city of San Francisco offered “rental coupons” to arriving tenants, which can be used monthly to reduce their rental obligations.

For example, Tenant A`s rental agreement stipulates that the rent is 1200 $US per month, although similar accommodation has not been rented at this level. In order to encourage Tenant A to sign the lease with this amount, the lessor offered US$1,200 of the lease for the first year of the lease. As a result, Tenant A was able to submit a $100 voucher for each month`s rent and pay only $1,100 out of pocket in the first year. This owner then terminated the coupon program as the rental market improved. Hundreds of affected tenants then pursued massive litigation in protest. The Rent Board found that, with this example of Tenant A, the basic initial rent was legally $1,100 per month for each year of rent, because the discount granted by the coupon incentive was permanently incorporated into the o