2–4 Unit Investing in Glen Park Under SF Rent Rules

Thinking about buying a duplex, triplex, or fourplex in Glen Park but not sure how San Francisco rent rules will shape your returns and next steps? You are not alone. Between local rent control, state caps, and strict procedures, the details can make or break a small multifamily plan. In this guide, you will learn how the rules work on 2–4 unit buildings, what to check during due diligence, and practical ways to model income, renovations, and exits. Let’s dive in.

Why 2–4 units in Glen Park

Glen Park is a compact, transit‑served neighborhood with many older small multifamily buildings and a village‑style retail core. That older housing stock means many units are likely subject to San Francisco’s rent ordinance. Citywide, rents rebounded in 2024 and 2025, and some nearby ZIP codes saw above‑average growth as vacancy tightened, which can lift revenue potential for well‑run small buildings. Recent reporting on San Francisco rent trends highlights the demand backdrop you are investing into.

How SF rent rules affect your plan

San Francisco’s rent landscape blends local law with state rules. Your underwriting should start by mapping which law applies to each unit and what that means for rents, occupancy changes, and timelines.

Which units are covered

Most units first occupied on or before June 13, 1979 are covered by the local rent ordinance for both rent increases and just‑cause protections. In 2020, the City expanded coverage so some newer units now have eviction protections even if local rent‑increase limits do not apply. Always confirm the year built, certificate of occupancy, and Rent Board registration before you write an offer. You can review the City’s summary of these coverage updates in the Rent Board’s 2020 news archive.

Local law vs. state law

State rules like Costa‑Hawkins preserve certain exemptions from local rent control. AB 1482, the Tenant Protection Act, adds a statewide rent cap and just‑cause framework where local law is not more protective, with exemptions for things like some owner‑occupied duplexes and newer construction. Review the AB 1482 overview to understand how statewide rules might apply when local rent‑increase limits do not.

Underwriting revenue in Glen Park

Getting your income model right is critical. Match each unit to the correct rule set, then build your assumptions conservatively.

Rent‑controlled units

If a unit is covered by San Francisco’s ordinance, typical revenue drivers include:

• The annual allowable General Adjustment set by the Rent Board.
• Any banked increases, if documented.
• Certified capital‑improvement passthroughs via Rent Board petition, subject to caps and amortization.
• Vacancy resets to market in many cases, subject to local and state rules.

For specifics on capital improvements and passthrough mechanics, see the City’s guidance on capital improvement petitions.

Units not subject to local rent‑increase limits

Some post‑1979 units or exempt property types may not be capped by the local ordinance, but AB 1482 may still apply unless a statutory exemption exists. Confirm the right framework for each unit, then stress‑test cash flow with conservative rent and vacancy assumptions.

Planning for occupancy changes

Changes to who occupies a unit are heavily regulated. Build timelines and costs into your plan from day one.

Owner Move‑In basics

Owner Move‑In is a recognized just cause in San Francisco. It requires strict notices and Rent Board filings, and the owner or qualifying relative must occupy the unit as a principal residence for at least 36 continuous months. Some tenants have enhanced protections and relocation benefits. Review the Rent Board’s Owner Move‑In overview before you draft any strategy around OMI.

Ellis Act realities

The Ellis Act allows an owner to withdraw units from the rental market. In San Francisco it triggers specific notices and relocation payments that were increased in 2022 and are indexed annually. Noncompliance can create sizable liability. The rules live in the Administrative Code and are summarized in the City’s Ellis Act and relocation payment provisions.

Buyouts are regulated

Cash‑for‑keys agreements must follow a formal process in San Francisco that includes a pre‑buyout disclosure, Rent Board filings, and a rescission window for tenants. Expect buyouts to take time and budget accordingly. Local tenant resources outline the regulated nature of buyout procedures.

Renovations and cost recovery

Upgrades can improve performance, but you should not assume full recovery of costs through rent.

• Only qualifying capital improvements can be passed through, and only by Rent Board petition. These passthroughs are capped, amortized, and do not become part of base rent.
• Small buildings use specific forms and allocations, and tenants can contest petitions.
• Mandatory seismic and code work has special rules.

For definitions, timelines, and limits, review the City’s capital improvement petition guidance.

Owner‑occupancy and financing options

If you plan to live in one unit, financing may be more accessible and cheaper.

• FHA insures 1–4 unit, owner‑occupied purchases with as little as 3.5 percent down in many cases, subject to program rules and underwriting. Start with HUD’s overview of FHA loans.
• Fannie Mae announced a 5 percent down option for owner‑occupied 2–4 unit properties in late 2024 and 2025. Availability and terms vary by lender, so confirm details early. See an industry summary of the Fannie Mae 5 percent down option.
• Lenders often require reserves and may apply self‑sufficiency tests when using rental income to qualify. Model conservative rents and vacancy to avoid surprises.

Exit strategy in Glen Park

Selling a tenant‑occupied 2–4 unit building is common in San Francisco. Converting to condos or reducing unit count is far more constrained due to caps, tenant protections, and timelines. Do not assume a quick condo conversion path. Plan your exit around ordinary sales timelines and value add from stable income, improved condition, and clean compliance history.

Due diligence checklist for a 2–4 unit purchase

Use this list to protect your deal before you release contingencies.

• Confirm the original year built and certificate of occupancy. Note any later unit additions or substantial rehab that could affect coverage.
• Pull current rent roll, leases, and security deposit records. Identify the base rent versus any passthroughs.
• Verify Rent Board registration and look for any pending or recent landlord petitions.
• Search for prior OMI or Ellis filings and any recorded buyout agreements. Past filings can limit future options.
• Check ownership form. Entity ownership can affect certain AB 1482 exemptions on single‑family or condo situations.
• Review planning and permit history for unit mergers, demolitions, or substantial rehab activity.
• Order preliminary title to identify restrictions or condo‑conversion implications.
• Underwrite with conservative vacancy and turnover timing. If you plan capital improvements, include petition and decision timelines.
• Confirm financing programs, reserve requirements, and self‑sufficiency tests with your lender.
• Speak with the Rent Board counseling staff and qualified local counsel about required notices, filings, and relocation obligations.

Ready to map a Glen Park strategy that fits the rules and your goals? As a local broker and property manager, Kevin Wong can help you buy the right building, set up compliant operations, and position your exit when the time is right.

FAQs

Are most 2–4 unit buildings in Glen Park rent‑controlled?

• Many are. Buildings first occupied before June 13, 1979 are generally covered by San Francisco’s rent ordinance, while some newer units have eviction protections even if local rent caps do not apply.

Can I raise the rent to market when a tenant moves out in San Francisco?

• Often yes, but it depends on the unit’s status under local and state law. Vacancy decontrol can allow a market reset in many cases, so verify coverage before assuming new rent.

What should I know about Owner Move‑In in San Francisco?

• OMI is a just cause with strict rules. You must file required notices, move in as your principal residence, and occupy for at least 36 continuous months, with relocation payments in qualifying cases.

If I renovate, can I pass costs to tenants in San Francisco?

• Some qualifying capital improvements can be passed through by Rent Board petition. Passthroughs are capped, amortized, and time‑limited, so budget conservatively.

What low‑down options exist for owner‑occupants of duplexes to fourplexes?

• FHA allows 3.5 percent down in many cases on 1–4 unit owner‑occupied purchases. Fannie Mae added a 5 percent down option for owner‑occupied 2–4 unit properties, subject to lender participation and underwriting.

Are buyouts a quick way to change occupancy in San Francisco?

• No. Buyouts are regulated with required disclosures, filings, and a rescission period. Plan for time, compliance, and realistic costs.