A San Francisco family is moving out of the apartment they have called home for years after their new landlord raised the monthly rent from $3,695 to $7,000.
Since 2021, Ashley and Zach Waldman have called a two-bedroom unit in the city’s Outer Richmond District their home. However, this June, they found a notice on their door raising their rent from $3,695 per month to $7,000, according to ABC7.
The building’s new owner, Hans Geiszler, purchased all 10 condominiums and says he is also exempt from California’s statewide rent cap. The reason comes down to another distinction in state law: who owns the condo and how that ownership is structured.
Why Their Condo Falls Outside San Francisco’s Rent Cap
Image Credit: Antonio Gabola on Unsplash
Part of the issue comes down to when the building was constructed. San Francisco’s local rent-control limits generally apply to units that received their first certificate of occupancy before June 13, 1979.
The Waldmans’ building dates to 1996, placing their apartment outside that local rent cap. For units that are covered, the current allowable annual increase is 1.6%, according to the California Attorney General’s Office.
At the state level, California does cap rent increases for many tenants. In the San Francisco area, the current statewide limit is 8.8% over a 12-month period under the Tenant Protection Act.
But some condominiums are exempt from that cap. ABC7 reports that landlord Hans Geiszler says the Waldmans’ unit qualifies for one of those exemptions, allowing for the rent increase.
Rahman Popal, The Law Firm For Tenant Rights, Inc., feels these rent hikes are having a detrimental impact on San Francisco. “The city is being hollowed out,” said Popal. “I get calls from teachers, artists, the backbone of the city, who are facing similar extreme rent hikes.”
The Rent Increase is Sending The Family Elsewhere
The Waldmans tried pushing back after receiving the notice. ABC7 reports that they texted Geiszler saying they rejected the change to their tenancy, and he responded by insisting the notice was not something they could reject.
ABC7 writes that 7 On Your Side contacted Geiszler and asked why he had raised the family’s rent so sharply. The outlet says he promised to respond but had not provided an explanation by the time ABC7 published its article on Aug. 20.
Unable to afford $7,000 per month, the Waldmans have found another place in San Francisco for less than the new $7,000 rent.
“It’s heartbreaking,” said Ashley about the outcome.