There was someone who came to me, unsure of what to do with the house inherited from their parents. Selling it would incur taxes, and leaving it empty felt wasteful, so they decided to rent it out but were overwhelmed with what to prepare from the start.

The average rent in San Francisco, as of August 22, 2026, according to Zumper, is $4,395. This is a 3 percent increase from a month ago and a 26 percent increase from a year ago. A one-bedroom apartment averages $4,180, while a two-bedroom has surpassed $6,020 for the first time. If the house is inherited, the average can vary greatly depending on its location and condition, so it's best to use this average as just a starting point.

Once the rent is set, it's time to post an advertisement. Platforms like Zillow and Apartments.com are essential, and photos taken in natural light during the day attract more inquiries. Simply put, a single photo can significantly influence the number of inquiries without any advertising costs.

When inquiries come in, screening is necessary. Checking credit scores, proof of income, and previous rental history is key. The income requirement is commonly set between 2.5 to 3 times the rent. If the terminology is unfamiliar, think of it this way: screening is the process of ensuring that the tenant can comfortably pay the rent each month.

Once a tenant is chosen, a lease agreement is drafted. The rent amount, payment date, security deposit amount and return conditions, repair responsibilities, and contract duration must be clearly documented.

According to California's AB 12 amendment, starting July 1, 2024, landlords can generally only collect a security deposit equal to one month's rent. If a landlord owns two or fewer rental properties and the total number of units does not exceed four, they can collect up to two months' rent. The deposit must be returned to the tenant within 21 days after they move out, along with a statement of deductions.

San Francisco takes it a step further. The city's Rent Ordinance applies to most older buildings. This means that landlords cannot arbitrarily raise the rent each year; increases must fall within a specified range. The allowable increase rate from 2025 to 2026 is set at 1.4 percent. When evicting a tenant, there must be one of 16 legally defined just causes, and if the eviction is not due to tenant fault, additional relocation fees must be paid.

If the house is inherited, the first step is to check whether the ordinance applies to the building, as this can vary based on the year built and unit structure.

There are also established procedures for when rent is overdue. First, a 3-day notice must be sent, and if the issue is not resolved, an unlawful detainer lawsuit must be filed in court. Changing locks or removing belongings without proper procedure is illegal here as well. Simply put, no matter how frustrating it may be, skipping procedures can actually put the landlord at a disadvantage.

It's also good to know the criteria for security deposit deductions in advance. Normal wear and tear from long-term occupancy cannot be deducted, and only actual damages are subject to deductions. If the deduction exceeds $125, receipts must be provided.

Checking homeowners insurance is necessary too. Standard homeowner's insurance often does not cover situations where tenants reside, so switching to landlord insurance is safer.

If you want to check on the house while the tenant is living there, you must generally provide written notice 24 hours in advance and visit during normal business hours. Simply put, if you show up unannounced in a hurry, it could put the landlord in a difficult position. When raising rent, if the increase is 10 percent or less, written notice must be given 30 days in advance; if it exceeds 10 percent, 90 days' notice is required. However, due to the low allowable increase limits set by the aforementioned rent ordinance, it is rare for this notice period to be necessary.

This article is intended for general informational purposes and is not legal advice. San Francisco has particularly stringent rent ordinances, so be sure to consult a real estate professional or attorney before signing any contracts.