What multifamily property owners should know about 2026 rent limits and updated San Francisco inspection requirements

For multifamily property owners, keeping up with annual rent regulations and property compliance requirements is an important part of managing an investment.

With rental demand and asking rents continuing to change across San Francisco, owners should also be aware of the rules governing rent increases and an important update to San Francisco's structural inspection requirements.

Here is a quick overview of two items to have on your radar in 2026.

2026 Rent Increase Limits: Which Rule Applies to Your Property?

One of the most important things for Bay Area owners to understand is that there isn't one rent-increase percentage that applies to every property.

For covered properties under California's Tenant Protection Act (AB 1482), the maximum rent increase for increases taking effect between August 1, 2026 and July 31, 2027 is 8.8% in the San Francisco Area.

The San Francisco Area for purposes of the state's calculation includes:

• Alameda County

• Contra Costa County

• Marin County

• San Francisco County

• San Mateo County

The 8.8% is a maximum under the statewide law for covered properties, not an automatic increase that every owner can apply. Local rent regulations, property exemptions and other requirements may affect what is actually permitted. 

San Francisco Rent-Controlled Units: 1.6%

San Francisco has its own local Rent Ordinance, which means owners of qualifying rent-controlled units need to pay attention to the City's annual allowable increase.

For increases effective March 1, 2026 through February 28, 2027, the allowable annual increase is 1.6%. 

That is significantly different from the 8.8% AB 1482 figure.

The takeaway for owners: before implementing a rent increase, make sure you know which rules apply to the specific property and unit.

San Francisco also has additional rental housing regulations and tenant protections that owners should consider when making changes to a tenancy.

New San Francisco Structural Inspection Requirements

Rent regulations aren't the only update multifamily owners should have on their radar.

San Francisco amended its structural maintenance inspection requirements in 2026 through Ordinance 92-26, which became effective June 15, 2026. 

The requirements apply to certain weather-exposed elements of apartment buildings and hotels, including:

• Balconies

• Decks

• Landings

• Stairways

• Guardrails and handrails

• Fire escapes

• Other covered exterior elements

Under the updated Housing Code, owners generally must provide an inspection affidavit every six years. The updated rules also allow certain properties subject to California's exterior elevated-element requirements to coordinate their San Francisco inspection affidavit timing with the state inspection schedule, subject to specific limitations.

What Should Multifamily Owners Do Now?

For owners of San Francisco and Bay Area multifamily properties, this is a good time for a quick annual review.

Rent

Review your current rents and confirm:

• Which rent regulation applies to each unit

• The date of the last rent increase

• The maximum increase currently permitted

• Applicable notice requirements

Property Compliance

Review your building's inspection records and confirm:

• When the last structural inspection was completed

• When your next inspection or affidavit may be due

• Whether the property has balconies, decks, stairs or other covered elements

• Whether state and local inspection requirements apply

You don't necessarily need to make changes simply because regulations have been updated. But knowing where your property stands can help you avoid surprises and make better operating and investment decisions.

Why This Matters to Your Investment

For multifamily owners, rent regulations and building requirements can have a direct impact on income, expenses, capital planning and ultimately property value.

Understanding your property's current rents, allowable increases and upcoming capital requirements can also be helpful when considering a:

Sale • Refinance • Acquisition • 1031 Exchange • Portfolio Strategy

A property's income potential is only one part of the investment equation. Understanding the regulatory and physical condition of the asset is equally important.

How Does Your Property's Rent Compare With Nearby Properties?

Understanding rent regulations is one part of managing a multifamily investment. Understanding how your current rents compare with the surrounding market is equally valuable.

Are your rents in line with comparable properties in your area? Could there be an opportunity to improve your property's rental performance?

If you'd like to better understand how your rents compare with similar nearby properties, contact Hanna John Azar for a complimentary rent analysis.

We'll help you evaluate your property's rental position using relevant market information and comparable properties, giving you another perspective as you plan your investment strategy.

Whether you're reviewing current rents, considering a future sale, or evaluating your property's long-term potential, understanding the market is an important first step.

Have questions about your San Francisco or Bay Area multifamily property?

Reach out to Hanna John Azar to discuss your property, request a complimentary rent analysis, or explore your investment goals.