San Francisco landlords must pay $117,000 to evict tenants under new law formula.

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San Francisco landlords are facing severe financial challenges due to a new city ordinance requiring substantial relocation fees for evicted tenants. The law, designed to protect tenants, has ignited controversy among property owners. Relocation fees are calculated based on a tenant’s current rent, adjusted for the apartment’s new market value, and then multiplied over 24 months. This formula can force landlords to pay up to $117,000 to evict a tenant.

Landlords argue these high fees create an immense financial burden, complicating property management. For example, with a tenant paying $1,000 a month, the landlord might owe $36,000 in relocation assistance. In some cases, that figure rises to $117,000 depending on market conditions. These significant costs could discourage landlords from investing in improvements or new rental properties.

The most shocking aspect of this law is the sheer scale of the financial outlay required from landlords. The Pacific Legal Foundation has filed a lawsuit, claiming the ordinance violates property rights and could reduce available rental housing, as landlords may opt to sell their properties instead of facing the risk of high relocation fees.

This is INSANE 🚨 San Francisco landlords forced to pay $117,000 to evict someone because the cities new law

“Here's how the new formula works. The tenant's current rent is multiplied by a differential index to adjust for the new market value of that apartment, then that number… pic.twitter.com/VOTkK8IdXC

— Wall Street Apes (@WallStreetApes) December 28, 2024