Landlords in San Francisco looking to kick out tenants in a bid to increase rents are shelling out more money ever recorded to those who want to voluntarily leave, the reports issued with the city’s rent board showed.
In May, a tenant buyout reached an all-time high of $475, 000 to a couple who rented a luxury 7-bedroom Presidio Heights apartment for a long time.
“Some people’s reaction is that this is crazy,” San Francisco real estate owner Steven MacDonald said. “It isn’t.”
MacDonald has talked terms on the amount settlement for the renters in their 60s who occupied the apartment for three decades.
The city’s rent control system naturally results in tenant buyouts that even come near half a million dollars. These buyouts allow renters to stay in San Francisco amid market forces.
Huge buyouts are usually provided to longtime renters who occupied upmarket units that stayed at low market value.
“Any tenancy in San Francisco that is 30 years old is, by definition, half the market rate,” he said.
The San Francisco Rent Board reported that buyout negotiations last year have exceeded 330, having $50, 000 as the average payout.
Tenants rights advocate Shanti Singh of the Tenants Together renters’ coalition said that buyouts reaching six figures are “clearly an outlier,” as reported by San Francisco Chronicle.
“The majority of buyouts are orders of magnitude less than that,” Shanti said. “They’re paltry. They’re $10,000 to $20,000. They’re barely enough to keep you afloat with a few months’ reprieve, given how crazy the real estate market is. They’re not setting you up for life.”
The renters who were paid $475, 000 asked for anonymity. They resided in a six-story brick apartment building at Laurel and Washington streets and were among other tenants who raised their complaints regarding the disturbing building renovation by the landlord.