San Francisco has all kinds of unique rental situations. From bunk bed pods to beds that descend from the ceiling, living in one of the most expensive cities in the country forces people to get creative in order to find semi-affordable housing. And one of the best ways to get a deal is to luck into a room in a San Francisco apartment that’s been rent-controlled for years.

But when you sign up to live with someone who’s paying far below market rate, they’re not just becoming your roommate — they’re also becoming your landlord. The “master tenant,” as they’re often known, gets to decide your rent; you’ll likely cut a check directly to them and even funnel repair requests their way. This situation is ripe for conflict, seeing as one person has drastically more power than the other tenants. But it’s not a perfect arrangement for the de facto landlord, either: They often hold even more power than they may have bargained for.

To understand a “master tenant” situation, it’s important to start with rent control and all the rules that come along with it. More than 60% of San Francisco’s rental units are subject to rent control. Specifically, rental units in a building constructed before June 13, 1979, qualify. Under the San Francisco Rent Board, people living in rent-controlled apartments are entitled to special protections regarding rental increases and eviction. Their apartments are likely cheaper than market rate and can only increase in rent costs by a certain amount each year.

The San Francisco Rent Board sets a percentage per year based on the Consumer Price Index in the San Francisco-Oakland-San Jose region for a 12-month period. The allowable annual increase amount for March 2021 to Feb. 28, 2022, which was 0.7%. This year, the allowable increase has risen to 2.3%. If you moved into your current two-bedroom apartment in 2010 and paid $2,800 a month, the most your rent could be now is $3,339. That’s about 15% below the median rent for a two-bedroom apartment according to Zumper’s most recent rental estimations.

“These arrangements are pretty much the only affordable arrangements that are left,” said Scott Weaver, an attorney and volunteer with the San Francisco Tenants Union. “It’s unfortunate in this tight housing market because you want to be able to be picky about who you have as a master tenant.”

A “for rent” sign hangs outside an apartment building in San Francisco.

Douglas Zimmerman/SFGATE

But becoming a master tenant often happens by accident. “There’s no document that’s signed that empowers someone to be a master tenant,” said tenants’ rights attorney Joseph Tobener. “It happens by circumstances. People get into these roommate situations in order to survive. … The roommate is a way to make ends meet.”

Search “master tenant” on Twitter and there are plenty of horror stories out there. A common grift? Master tenants charging subtenants an amount that adds up to more than the actual rent, allowing them to keep the profit. Adam, who declined to give his last name, said when he first moved to San Francisco, he found a two-bedroom apartment in Nob Hill with a master tenant who was never around (a nice perk). But the master tenant later rented her room out to another tenant, who was very messy, and then eventually stopped paying rent entirely. Adam came home one day to find a note taped to the front door that showed the full rent amount of the apartment, which was far lower than the “half” he was paying for his room. The full rent for the apartment was $2,150, and his rent for the smaller bedroom was $1,500.

Yup the total rent for the 3 bed was $1600 that the master tenant was paying I was paying 1200 of that!!!!

— Michael Farley (@michaelfarleyza) June 14, 2022

The master tenant moving out of their apartment happens entirely more than you’d think, whether or not they ever plan to return.

We also never had contact with the landlord, we could only communicate through the master tenant who lived in a different time zone.

— Bonny Light Horsewoman (@Nic3ole) June 14, 2022

Some San Franciscans get a room in a master tenant-run apartment that’s too cheap to leave, even though the master tenant is dangerous, abusive, or just plain a terrible roommate.

I was a master tenant at a great flat on Oak Street back in the late nineties. Had 3 other good, stable, roommates for years. They all left at the same time for various reasons, had to bring in 3 new people, it was a disaster. I left rather than be stuck with them.

— Ben Dover (@basurasemanal) June 13, 2022

One SFGATE staffer said he suffered through a terrible master tenant situation for eight years because the rent on his apartment in Russian Hill was significantly cheaper than it would have been in a market-rate unit. The master tenant had already been there for more than 10 years, was messy and had a penchant for late-night parties. But ultimately, the master tenant conundrum is what allowed the SFGATE staffer to save up enough money to buy a place in the Bay Area.

If you’re tempted to rent a room from a master tenant, make sure to look out for red flags, Weaver said. “You want to be picky about your master tenant. You have to rely on your gut instincts. If there’s been a lot of turnover, that may be a warning sign.”

Weaver also warns against renting from someone who seems to revel in their amount of power and the fact that they get to make the rules.

While it seems like master tenants are all powerful, they’re actually taking on more responsibility than they often think. “Master tenants are landlords under the rent ordinance, so any law that applies to a landlord is going to apply to master tenants,” Tobener said.

That means a master tenant could be sued if repairs aren’t made in a timely manner, or if they aren’t keeping the apartment up in a safe way should there be a fire, for example. They also could be sued if it’s discovered that they’re charging the subtenants more than the total cost of rent, or an odd proportion of the share.

If you end up as a master tenant, even by accident, Tobener recommends getting tenant insurance to protect yourself. “You’re in the business of landlording if you’re a master tenant and you’ve got to run it like a business or it’s going to bite you in the ass,” Tobener said. “And most people don’t. Most people think of it just like a roommate situation [where you’re] the one cutting the check.”

The actual landlord will also typically only work with the master tenant when it comes to collecting rent, taking repair requests, etc. If the landlord forms a relationship with one of the other tenants, then they wouldn’t be able to necessarily raise the rent if the master tenant eventually moves out. Plus, it’s easier to just deal with one person.

With San Francisco rental prices still the second-highest in the country, Weaver said he thinks these types of situations will always be around. And he said he thinks most of the time, they end up working out fine. “If people are able to get along, it’s a great thing,” Weaver said.

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San Francisco, CA — Mayor London N. Breed and the Mayor’s Office of Housing and Community Development (MOHCD) are encouraging residents to apply to the CA COVID-19 Rent Relief Program ahead of the March 31, 2022 deadline. The statewide program helps California tenants who experienced financial hardship during the pandemic cover unpaid rent and utilities. The California Department of Housing and Community Development has committed to providing assistance to all eligible tenants who apply by the end of the month.

MOHCD is partnering with community-based organizations throughout San Francisco to help residents complete their applications, including those in need of technical support or for whom English is not their primary language. Prospective applicants can visit the sf.gov/renthelp webpage to learn more about the CA COVID-19 Rent Relief Program and find local organizations providing free application assistance, tenant counseling, and eviction defense services.

“This program has helped thousands of San Franciscans remain housed during the pandemic, but we know that even as our city’s recovery continues, countless residents are still struggling to make ends meet,” said Mayor Breed. “We are grateful that the State is committed to providing this assistance, and we will do everything we can to help those in need of this relief access these funds so they can stay in their homes without fear of eviction or displacement.”

“The goal of the City is to make sure that all tenants eligible for state rental assistance receive assistance,” said Eric Shaw, Director of the San Francisco Mayor’s Office of Housing and Community Development. “We are working with City and community partners to make sure that tenants are aware of the CA COVID-19 Rent Relief Program and get the support they need to apply for rental assistance by March 31.”

Eligible tenants may receive up to 18 months of financial assistance to pay outstanding rent and utilities. Program eligibility is based on income, with a maximum annual income of $102,450 for a single person and $146,350 for a family of four. To apply, the housingiskey.com online portal asks tenants to provide information on income and amounts owed. Landlords may also apply on behalf of tenants. The program has distributed close to $103 million to over 8,900 San Francisco households since its launch last spring.

A broad coalition of stakeholders, including the San Francisco Anti-Displacement Coalition, the San Francisco Apartment Association, and the Eviction Defense Collaborative, has mobilized to provide outreach and assistance to help renters apply for the CA COVID-19 Rent Relief Program ahead of the deadline.

“We know that the uncertainty of this period can be scary, but you are not alone,” said Molly Goldberg, Director of the San Francisco Anti-Displacement Coalition. “From help applying for rent relief to information about your rights to legal assistance, the San Francisco Anti-Displacement Coalition’s member organizations are here to help you stay in your home.”

“We understand that many tenants and property owners have struggled financially during the pandemic,” said Charley Goss of the San Francisco Apartment Association. “The SFAA is partnering with the City to provide free resources to help property owners and their tenants apply for the CA COVID-19 Rent Relief Program before March 31.”

“No tenant should have to bear the brunt of a rental housing crisis triggered by a global pandemic,” said Martina Cucullu Lim, Executive Director of Eviction Defense Collaborative. “EDC continues to support the rights of every tenant through free legal representation. Losing your home due to nonpayment of rent during this unparalleled time is a nonstarter.”

For information on how to apply to the CA COVID-19 Rent Relief program and a full list of local rent relief resources, visit sf.gov/renthelp.

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This press release was produced by the San Francisco Office of the Mayor. The views expressed here are the author’s own.

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CONCORD (KPIX) – Contra Costa County is throwing a $ 75 million lifeline to tenants and landlords with a new aid program funded from federal funds made available to the state.

California’s $ 2.6 billion in COVID-19 rental relief funds will finally help ease the crisis for both renters and landlords. For many in the Bay Area, it is a chance to escape the mountain of debt caused by the pandemic.

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Concord’s Monument Corridor has many apartments and many residents like Hector Rodrigues. He hasn’t worked for a year and can’t pay the rent. Rodrigues now owes more than $ 7,000.

“They tell me to pay, pay, pay … but how can I pay?” he asked. “Nothing, there is nothing.”

Now the COVID Rental Relief program is officially open. Contra Costa County alone has $ 75 million to free workers from their rental debts, said Contra Costa District 3 supervisor Diane Burgis.

“I’m really excited that we have a program that helps people stay in their homes. that there is one less thing to worry about, ”she said

Russ Heimerich, who works with the California Business Consumer Services & Housing Agency, which manages Contra Costa’s program, explained how it works. People who make up to 80 percent of the local median income apply for help. If their landlords agree, the state will pay 80 percent of the amounts owed.

“And with that they will agree to award the remaining 20 percent,” said Heimerich. “As soon as you take that 80 percent, the slate will be wiped clean and you will be caught.”

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It would cover the debt due to COVID that arose between April 1st and March 31st. If landlords refuse the offer for any reason, the state would pay 25 percent of the amounts owed by the renter, which the law prevents eviction.

The state has also classified the rent owed as a “consumer debt,” which can only be recovered by filing a lawsuit. But Supervisor John Gioia says change makes an important difference in law.

“Now they could only get a judgment against you for unpaid rent, but you cannot be evicted,” he said.

Joshua Howard of the California Apartment Association told KPIX that it may not. He says most landlords seem excited about the chance to get back 80 percent of the amounts owed to them.

“Our member service team has been asking questions non-stop since Monday, which shows us that the program is very exciting,” said Howard. “A lot of interest from [property] Owners apply to regain this income that they lost in the past year. “

Contra Costa County uses the state program, but other counties and local jurisdictions may administer the program in different ways. Regardless of where Bay Area residents live, people can find out where to apply by visiting the state’s website at HousingIsKey.com or by calling 1-833-2122.

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Help is offered in more than 200 languages ​​and immigration status is not a problem with the program.

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The famous Cliff House building, which housed a seafood restaurant gloriously over the Pacific until the pandemic closed for good, could be breathing new life as early as this spring.

The San Francisco board of directors unanimously voted on Tuesday for a resolution urging the National Park Service, which owns the property, to use the space immediately while it searches for a long-term tenant. A National Park Service spokesman confirmed that the federal agency is planning to do so soon – and that the goal is to get the building back to house a restaurant, reversing an earlier attitude that a restaurant should be due to the state of the food industry.

“We are committed to maintaining the Cliff House building as a restaurant and public space,” said Julian Espinoza of the National Park Service via email. “Since the beginning of this process, we have reaffirmed our belief that the building belongs to the public – and not to any individual group or commercial entity.”

Dan and Mary Hountalas, who ran the waterfront restaurants from 1973 to 2020, have until the end of March to remove their belongings from the building, according to Espinoza.

“After that time, we intend to look into short-term, temporary use of the building so that it can be occupied in the meantime before a long-term lease is signed,” he said.

The public outcry over the fate of the Cliff House isn’t just that the iconic San Francisco restaurant closed last year: it’s fear of what might become of the building. The contract with Hountalases expired in 2018, but the National Park Service issued a number of short-term lease extensions as the formal application process for a new, long-term tenant was delayed. When the Cliff House sign came down in December, many feared the building would remain empty for years when the National Park Service resumed its lengthy advertising process mandated by federal law.

Because of this, several organizations – including the San Francisco Travel Association, the San Francisco Chamber of Commerce, and the Golden Gate Restaurant Association – wrote a letter to Sen. Dianne Feinstein in January asking her to work with the National Park Service to to find a quick and quick solution to potentially short-term use such as a restaurant for the building as stated in the resolution by Supervisor Connie Chan.

“As the city reopens and recovers from the COVID-19 pandemic, it is crucial that landmarks like the Cliff House are reactivated and can attract locals and tourists,” the resolution reads.

While the National Park Service is now claiming the Cliff House building will be turned back into a restaurant, the agency previously expressed some doubts. In a December 3 letter to the Hountalases, the National Park Service said it had reassessed the feasibility of anyone running the space as a restaurant in the near future due to the status of the restaurant industry during the pandemic.

But whatever the restaurant may move into the building is unlikely to be called Cliff House or bring back the sign as the Hountalases branded the name.

Janelle Bitker is a contributor to the San Francisco Chronicle. Email: janelle.bitker@sfchronicle.com Twitter: @janellebitker

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