The San Francisco Board of Supervisors voted unanimously Tuesday to require landlords to reveal the total cost, including recurring fees, on all apartment listings and lease agreements in the city.
These fees, for things like amenities, utilities and trash, can jack up tenants’ total monthly costs by 10 to 30 percent, an analysis from the Urban Institute Initiative found.
The “No Hidden Rent” act, introduced by District 5 Supervisor Bilal Mahmood in June, comes at a time when rents have shot up 26 percent year-over-year and continue to rise in the midst of the AI boom. Last month, Mayor Daniel Lurie declared a “rent emergency” in the city.
“When you buy a plane ticket or a concert ticket, you expect to see the full price before you pay, and California law now largely requires it,” Mahmood said during a meeting to discuss the legislation on Oct. 5. “Renting a home is the biggest purchase most people make every month. It deserves at least the same honesty.”
Now, tenants will be able to see one number, upfront: the total estimated cost. San Francisco would be the first city in California, Mahmood said, to require such a figure to be advertised, although the San Diego City Council has proposed a similar ordinance to disclose and cap recurring monthly fees.
Tenants will also be able to terminate their leases early and without penalty if hidden fees were not revealed to them, and tenants cannot be evicted for nonpayment of undisclosed fees.
“Too often we get promised one price, and then nickel and dimed with sneaky fees that make the true cost altogether higher,” said Peter Hosey from Indivisible SF at an earlier hearing on Oct. 5. He argued in favor of eliminating the fees altogether.
The legislation won’t fix the city’s housing crisis, Mahmood said on Oct. 5, but it can help tenants make an informed decision during one of the hardest times to find housing.
“Tenants deserve clarity, and they deserve to plan for their future without hidden costs waiting around the corner,” he said.
