ABOUT THE SAN FRANCISCO
BAY AREA RENTAL MARKET
The State of the Rental Market
| How Did Rentals Become So Expensive in the Bay Area? How Much of Your Paycheck Goes to Rent? |
What is the Best Way to Secure a Rental? This Year's Allowable Rent Increase Amount |
How Did Rentals Become So Expensive in the Bay Area?
When it comes to the San Francisco rental market the simple law of supply and demand applies - San Francisco is a small and highly desirable place to live where many qualified people compete for few units.
Most new construction has been in the area of luxury condos. Though some relief has come in this form of new apartment construction, prices will remain higher than the rest of the nation. Websites like Airnnb have also created a new trend towards more short-term rentals.
Housing got tight toward the end of the decade when a booming local economy lured a flood of newcomers to the Bay Area, straining the already scarce supply of rental housing. Though some people left the Bay Area after the "bust", tech came roaring back again with San Francisco at the epicenter. The addition of tech commuter shuttles ("Google buses") from San Francisco to Silicon Valley has made living in the City even more desirable.
What Should I Expect to Pay for a Rental?
| District | 1 Bedroom |
|---|---|
|
Castro / Eureka Valley
|
$2,950 |
|
Civic Center / Cathedral Hill
|
$3,040 |
|
Downtown / Union Square
|
$2,180 |
|
Marina District
|
$3,650 |
|
Mission District / Outer Mission
|
$2,800 |
|
Nob Hill
|
$3,050 |
|
Noe Valley
|
$2,765 |
|
Pacific Heights
|
$3,500 |
|
Potrero Hill
|
$2,825 |
|
Richmond District
|
$2,295 |
|
Sunset District
|
$2,295 |
|
*Last Updated 1/1/2014 Source:zumper.com
|
|
How Much of Your Paycheck Goes to Rent?
The latest statistics show that nearly a quarter of renters spend more than 50% of their income on rent. The recommended ratio is 25-30%. Most landlords require a household income of three times the monthly rent.
What is the Best Way to Secure a Rental?
RentalGuide.com is a great place to start. Remember - landlords want a qualified tenant but there are plenty out there. Here are some helpful hints, based on our 25+ years of experience working with landlords, that will prepare you to stand out as a star candidate: at will prepare you to stand out as a star candidate:
- Check RentalGuide.com for new listings on a daily basis. If a listing meets your criteria, call immediately. Remember, it is time consuming for a landlord to show an apartment (not to mention that they are losing rent for every day the unit sits vacant) so they want to fill a unit quickly. Be first in line for a showing- the early bird gets the apartment!
- When leaving a recorded phone message for a landlord, speak clearly and slowly. In order for a landlord to return your call he / she must understand your phone number. Don't just rely on leaving a message - call back and try to get a live person!
- Be persistent and aggressive without being annoying. Follow up on your showing. Ask the landlord when he / she will be making a decision, if he / she needs any additional information or a deposit. Bring your checkbook! Prospective renters who leave a deposit with their application are one step ahead of the game! Be so bold as to ask for the apartment- i.e. close the deal!
- Make a great first impression. Treat your apartment search as you would a job search- be courteous and professional.
- Know what you will qualify for based on your income (see note above). Don't waste your time (or a landlord's) on units that are out of your price range. While you can try to negotiate down a rental price, you should be reasonable - landlords know what their properties are worth and aren't likely to drastically revise their asking price. Set your sights on a unit that is within your budget.
- Make the landlord's job easy. Go to your interview / rental showing prepared - fill out and print our online application and get a copy of your credit report.
- Get to know the area - where you do and don't want to live - but be open-minded to all your options. We'd all like a cute one bedroom with hardwood floors and a view of the Golden Gate Bridge. If you need a rental now you can't be too picky.
- If you have a pet, write a "pet resume" and attach it to your application. Only 28% of landlords say they take dogs, 40% take cats. Be prepared to pay extra deposits and possibly more rent per month to have a pet.
- Dress for success. Your personal appearance is a reflection on how well you will maintain a landlord's property.
- Make a list of the amenities that you must have (parking, elevator, etc.), keep it short to have as many units to choose from as possible. Save time by asking "qualifying" questions over the phone (i.e. Does the rental meet my most basic criteria?).
- Alert your references that they might be contacted.
- Do a complete walkthrough on any unit you're serious about, and ask about repairs now. Use our rental checklist to inspect your future rental unit. Make your showing productive. Will things fit? Measure your furnishings and take along a tape measure to the units you are considering.
- Comparison shop, check out lots of places to see what your budget will get you. But again, don't be too picky or wait too long to accept a unit if it is offered to you.
This Year's Allowable Rent Increase Amount
Effective March 1, 2014 through February 28, 2015 the allowable annual increase amount is 1.0%. This amount is based on 60% of the increase in the Consumer Price Index for All Urban Consumers in the Bay Area, which was 1.6% as posted in November 2013 by the Bureau of Labor Statistics.
| EFFECTIVE PERIOD March 1, 2014-February 8, 2015 March 1, 2013-February 8, 2014 March 1, 2012-February 8, 2013 March 1, 2011-February 8, 2012 March 1, 2010-February 8, 2011 March 1, 2009-February 8, 2010 March 1, 2007-February 29, 2008 March 1, 2006 - February 28, 2007 March 1, 2005 - February 28, 2006 March 1, 2004 - February 28, 2005 March 1, 2003 - February 29, 2004 March 1, 2002 - February 28, 2003 March 1, 2001 - February 28, 2002 March 1, 2000 - February 28, 2001 March 1, 1999 - February 29, 2000 March 1, 1998 - February 28, 1999 March 1, 1997 - February 28, 1998 March 1, 1996 - February 28, 1997 March 1, 1995 - February 29, 1996 March 1, 1994 - February 28, 1995 March 1, 1993 - February 28, 1994 December 8, 1992 - February 28, 1993 March 1, 1992 - December 7, 1992 March 1, 1991 - February 29, 1992 March 1, 1990 - February 28, 1991 March 1, 1989 - February 28, 1990 March 1, 1988 - February 28, 1989 March 1, 1987 - February 29, 1988 March 1, 1986 - February 28, 1987 March 1, 1985 - February 28, 1986 March 1, 1984 - February 28, 1985 March 1, 1983 - February 29, 1984 April 1, 1982 - February 28, 1983 |
AMOUNT OF INCREASE 1.0% 1.9% 1.9% 0.5% 0.1% 2.2% 1.5% 1.7% 1.2% 0.6% 0.8% 2.7% 2.8% 2.9% 1.7% 2.2% 1.8% 1.0% 1.1% 1.3% 1.9% 1.6% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 7.0% 7.0% |