Why your security deposit usually cannot exceed one month of rent
State law changed the upfront math for tenants under California Assembly Bill 12. Since July 1, 2024, most landlords cannot collect more than one month of rent as a security deposit. The main exception is a small landlord: an individual (or a family LLC or trust) who owns no more than two residential rental properties with four or fewer units in total. A small landlord may still collect up to two months, but only one month if the tenant is a service member. This cap covers pet deposits as well. If a landlord on 24th Street lists an apartment for $3,000 per month, they cannot ask for a $3,000 general deposit alongside an additional $500 pet deposit. The entire upfront security holding cannot surpass the $3,000 threshold, regardless of whether you own a dog or a cat.San Francisco adds a distinct requirement that sets it apart from neighboring markets like Daly City or San Mateo. Under Chapter 49 of the San Francisco Administrative Code, landlords must pay annual interest on tenant security deposits held for a year or more. The rate is set each year by the San Francisco Rent Board. When your lease renews or when you vacate an apartment near Dolores Park, check whether your landlord credited that interest against your rent or issued a direct payment. Most nearby cities, including Daly City and San Mateo, have no such rule.What state law says about application fees
Applying for flats along Irving Street or Judah Street often means competing in weekend open houses where dozens of applicants drop files. California Civil Code Section 1950.6 strictly regulates screening fees, adjusting the maximum allowable amount annually based on changes in the Consumer Price Index. The cap is currently in the low-to-mid $60s per applicant and goes up a little each year, so check the current figure before you apply. A property manager charging an arbitrary $100 flat fee per person is violating state statutes.Landlords can only charge you for the actual out-of-pocket cost of pulling credit reports and processing background checks, up to that statutory limit. They must provide you with an itemized receipt showing their exact screening expenses. If an owner collects your fee but accepts another applicant before pulling your credit file, they are legally required to refund your money in full. Keep digital copies of payment receipts whenever you submit applications in multi-applicant runs.Why required fees must be included in the advertised rent
In newly built mid-rises in SoMa, base rents often look competitive until the lease contract arrives. Management companies frequently attempt to unbundle building services, layering separate monthly charges for resident package portals, basic gym access, key-fob programming, and bicycle locker rooms.Under California law (SB 611, signed in 2024), any fee you are required to pay to rent the unit must be included in the advertised rent. Landlords also can no longer charge you a fee just for serving a legal notice, such as a notice to pay rent. If you cannot opt out of a monthly tech package or amenity fee, it belongs in the headline price, not in the fine print after you are approved. Truly optional extras that you can decline, like a parking space or a storage locker, can still be priced separately. Because this is state law, the same rule applies in the East Bay, the Peninsula, and the South Bay, not just in San Francisco.How shared utility billing (RUBS) can raise your monthly costs
Older multi-unit buildings on California Street or Pine Street rarely have separate water or gas meters for each individual flat. To handle shared utility expenses, property managers routinely use a Ratio Utility Billing System, known as RUBS. Instead of paying a utility company directly for what you consume, a billing company (often a third party) divides the whole building's water, sewer, and common-area trash bill across tenants using a formula based on square footage or bedroom count.Newer buildings are more likely to have a separate meter for each unit, so you pay only for what you use. When reviewing an older building's lease terms, ask for the last three months of RUBS bills for that specific unit, so you know your real total monthly cost before you sign.Late fee clauses in these same leases require close scrutiny. California contract law forbids punitive late charges. A large flat penalty charged the moment rent is one day late is likely unenforceable. A late fee should be a reasonable estimate of the landlord's actual costs caused by the delay, typically structured as a small percentage of past-due rent after an established grace period.The lease questions to ask before you sign
Before paying a security deposit, clarify the property's regulatory status under the San Francisco Rent Ordinance. The line between covered and exempt housing dictates your future housing stability.- When was the building built, and is this unit covered by rent control? In general, apartments in buildings built before June 13, 1979 are covered by San Francisco's limits on annual rent increases (set at 60% of inflation). Single-family homes and most condos are usually exempt from those limits under state law (Costa-Hawkins), even when they are older. Newer buildings are not covered by the city's limits, but units more than 15 years old may fall under California's statewide rent cap (AB 1482). Ask the landlord directly, and check with the San Francisco Rent Board if you are unsure.
- What is the exact monthly cost including dedicated parking, pet rent, storage lockers, and utility formulas?
- Which specific utility services are billed to the tenant, and which remain the account responsibility of the owner?
- Does the lease mandate private renters insurance, and what minimum personal liability limit must the policy cover?
- What are the precise procedural rules for replacing a departing roommate or requesting a sublet?