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by mikeklaas 1881 days ago
It's sensible in San Francisco because having an active renter makes a property worth significantly less.

Why? You basically cannot kick evict a renter or raise their rent.

2 comments

Doesn’t that depend on the age of the building? I thought rent control was 1970s and earlier? That being said, SF is generally very tenant/sub tenant friendly in its laws.
Even still, landlords fear legal repercussions so much that they're willing to let a lot slide. When I moved out of my SF apartment, a plant I had had damaged the floor and my landlord was willing to eat the cost provided we moved out swiftly. Replacing the floors probably set him back a couple grand, but evicting tenants could be far more expensive.
From what I've seen of SF rentals and landlords, that's potentially the most money he had spent on maintenance & renovations in a decade, while collecting some of the most profitable rent in the country.
With a price to rent ratio of 53, San Francisco has the least profitable rent in the country.

https://smartasset.com/mortgage/price-to-rent-ratio-50-large...

Yes, if you bought today. What's the point of your post?
It makes intuitive sense for San Francisco to be "the most profitable rent in the country" as you claimed, but the surprising and counterintuitive truth is that it's the opposite.
Sitting empty it's hemorrhaging cash, which isn't a great quality for investors.