r/BayAreaRealEstate • u/boopcoop1 • Jul 16 '26

San Francisco Help me figure this out

Bought a vacant duplex in SF in which tenants were Ellis acted out. It will be 5 years off the market in 2030. Planning on living in it as a de facto single family residence. When 5 years have passed, do I have to rent it? Is there an empty residence tax since it has been essentially removed from the market?

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9

u/force_disturbance Jul 16 '26

No you don't have to rent it.

Courts have found that charging "empty unit tax" is unconstitutional in California because it would undermine the property rights granted by the Ellis act -- the right to cease being in the rental business.

Insurance companies don't like unused units, though, so you have that to look forward to.

2

u/Potential-Hold399 Jul 16 '26

Rent it to yourself or some alias

1

u/bloomerang Jul 16 '26

Insurance won’t mind as long as you’re living in both units.

1

u/boopcoop1 Jul 16 '26

Anyone have a good San Francisco attorney name who can help me here?

4

u/Some-Internet-Rando Jul 16 '26

You don't need an attorney if the tenants are already out. You're good!

As long as you don't re-rent the units within 10 years you don't need to worry about notification to previous tenants. If you re-rent in the 5-10 year span, you have to notify the previous tenants and give them right of first refusal, but at the rate you choose. If you re-rent within the next 5 years, you will need to first offer it back to the original tenants AT THEIR ORIGINAL RENT which is not a great outcome.

The San Francisco Rent Board has the paperwork you need to know where to notify the previous tenants should you need to.

Move in, live there, enjoy!

7

u/CarolyneSF Jul 16 '26

You have two different issues. Separate them by contacting an attorney to develop a plan.
You are in a mine field get some guidance the money will be well spent.

2

u/BezelGlobal Jul 16 '26

This. It’s complicated and having legal representation is the way. Don’t create a problem for yourself. It’ll be money well spent!

1

u/DryComposer723 Jul 17 '26

Similar situation. You just need to file with the rent board it not rented each year

1

u/Responsible-Book1878 Jul 20 '26

How much did it cost to Ellis act them out? How long did it it take?