As you probably know, rents in San Francisco, San Jose, and Oakland have skyrocketed in recent years. If you live in the Bay Area, chances are good you would not be able to afford the apartment you currently have if you rented it today. That’s the whole idea behind rent-controlled units. With the Bay Area rental market being hotter than ever, your landlord might approach you about taking a San Francisco tenant buyout. Before you agree, though, you should probably think about the potential impact leaving your apartment would have on your lifestyle.
Why Does Your Landlord Want You to Leave?
If you live in a rent-controlled unit, your landlord might think he or she is missing out on a virtual windfall of rental income. As the housing market heats up, your landlord is probably comparing your rent to what others pay for a similar unit elsewhere in the Bay Area. Because your rent is fixed, you are probably paying considerably less than the market rate for an apartment like yours. Your landlord, then, might think he or she is missing out on potentially thousands of dollars in rent each month. So, your landlord might approach you with a tenant buyout proposal.
What Do You Get?
If you agree to your San Francisco tenant buyout, you will receive a lump sum from your landlord. You, of course, must vacate your apartment so that somebody else can rent it for potentially tens of thousands of dollars more each year. While leaving your apartment in exchange for a cash payment can be a smart financial decision, you want to be sure your landlord is not low-balling you. For that reason, you probably want to hire an experienced attorney who can negotiate on your behalf. Since your landlord probably has an entire team of attorneys trying to get the best deal for him or her, you want to have the smartest, most experienced attorney you can find.
How Much Is Your Apartment Worth?
Your attorney can negotiate the price of your tenant buyout. While there are many ways to value a rent-controlled apartment in the Bay Area, negotiations generally should begin at about $122 per square foot. If your landlord’s proposed buyout is significantly less than that, you should certainly speak with a qualified attorney as soon as you can.
Taking a San Francisco tenant buyout can be smart for renters in the Bay Area. Before you do, though, you need to be certain you are getting a good deal. By working with a skilled attorney, you can improve your odds of negotiating a satisfactory agreement.