South San Francisco & Daly City Landlord Basics Guide
April 2, 2026
April 2, 2026
Thinking about renting out a home in South San Francisco or Daly City? It can look simple from the outside: find a tenant, collect rent, and keep the property occupied. In reality, local demand is strong, statewide rules are detailed, and small mistakes with screening, notices, or deposits can create expensive problems. This guide walks you through the basics so you can approach landlording with a clearer plan and more confidence. Let’s dive in.
South San Francisco and Daly City sit in a part of the Peninsula where rental demand remains steady, but the operating environment is not casual. South San Francisco reports 66,185 residents, 36,600 employees working in the city, and a large share of older housing stock, with 77% of housing units built before 1980, according to the City of South San Francisco demographic information. Daly City’s adopted housing element reports that 42% of households were renter-occupied in 2019, which points to a significant rental base in the city.
Affordability pressure also shapes how you should think about pricing and turnover. Daly City reported that 25% of renter households were overpaying for housing in 2019, while South San Francisco’s anti-displacement work notes pressure from higher-income earners moving in as lower-income households are pushed to less expensive communities. For landlords, that means demand may be there, but so is the need for careful communication, consistent screening, and realistic expectations.
Current rent snapshots support that picture, but they need context. Zillow shows average asking rent in South San Francisco at $3,350, with one-bedrooms around $2,610 and two-bedrooms around $3,450, based on South San Francisco rental market trends. HUD’s 2024 market analysis describes the broader San Mateo submarket as balanced to slightly tight, with a 4.8% rental vacancy rate and average asking rent of $3,023, according to the San Francisco-Redwood City-South San Francisco market report.
If you own a rental in South San Francisco or Daly City, your first legal framework is generally California law. Both cities rely more on statewide landlord-tenant rules and local administrative requirements than on a city rent-board model. Daly City’s housing element says rent stabilization is not currently in place, and South San Francisco’s housing materials identify rent stabilization and just cause eviction as policies not currently in place while the city studies anti-displacement tools, as noted in the Daly City Housing Element.
That means your day-to-day decisions should start with California’s rules on rent caps, just cause, notices, deposits, screening, habitability, and fair housing. Local city requirements still matter, but they usually sit on top of the state framework rather than replacing it.
For covered units, California’s Tenant Protection Act generally limits annual rent increases to 5% plus CPI or 10%, whichever is lower, under Civil Code section 1947.12. Once a tenancy meets the occupancy threshold, a landlord generally needs a stated cause to terminate the tenancy, and no-fault terminations require either relocation assistance or a rent waiver equal to one month of rent.
This is one of the biggest pain points for accidental landlords. You may assume you can simply reset rent or end a tenancy when your plans change, but covered properties come with clear limits. Before you raise rent or plan a move-out, confirm whether your property is covered and what notice and documentation are required.
Some properties may be exempt from state rent caps or just-cause rules. Common exemptions can include:
These details come directly from California Civil Code section 1947.12. If you inherited a property or recently bought one, do not assume it is exempt or covered without checking the specifics.
Notice timing is another area where landlords get into trouble. Under California Civil Code section 1946, month-to-month tenancies generally require 30 days’ written notice to terminate. Rent increase notices are generally 30 days when the increase is 10% or less, and 90 days when the increase is more than 10%.
Even when the rule sounds straightforward, the way a notice is written and served matters. If you are unsure, this is often the point where outside support is worth it.
A good leasing process starts with clear standards that you apply the same way to every applicant. California law allows a screening fee only to cover actual out-of-pocket costs, caps the fee at $30 per applicant unless adjusted for CPI, requires written screening criteria, and requires refunds or fee reductions in some situations, including when no unit is available or the applicant is not considered. If you obtain a credit report, the applicant must also receive it, as outlined in California Civil Code section 1950.6.
Consistency matters for both compliance and peace of mind. When you use written criteria, document your process, and avoid making judgment calls on the fly, you reduce risk and create a smoother experience for everyone involved.
Fair housing rules are not optional, and they apply to landlords, property managers, and screening companies. The California Civil Rights Department states that protected characteristics include source of income, which means you cannot reject an applicant simply because they use a lawful housing subsidy or voucher, as explained on the California Civil Rights Department housing page.
In practical terms, focus your screening on lawful, consistent criteria. Avoid assumptions, avoid informal shortcuts, and keep your communication professional and factual from the first inquiry to the signed lease.
Security deposit rules changed in California, and landlords need to stay current. For most landlords, the state now caps security deposits at one month’s rent, though certain natural persons and LLCs made up only of natural persons may collect up to two months’ rent, under California’s security deposit rules.
After move-out, California requires an itemized statement and return of any remaining balance within 21 calendar days. Starting April 1, 2025, landlords must also photograph the unit before and after deductible repairs or cleaning. If you are not already using a move-in and move-out documentation system, now is the time to build one.
Keep a clean file for every tenancy, including:
This kind of recordkeeping is not just paperwork. It can protect you if a deduction is challenged and make your turnover process much easier.
California requires rental housing to meet basic habitability standards. A dwelling may be considered untenantable if it substantially lacks required features such as weather protection or working plumbing or gas facilities, under Civil Code section 1941.1. If something affects basic livability, quick action matters.
Entry rules also have limits. Landlords may enter only in specific situations such as emergencies, repairs or agreed services, inspections, or showings. This is where professional communication helps. Clear notice, respectful scheduling, and written records can prevent avoidable tension.
Even though statewide law does most of the heavy lifting, local compliance still matters. South San Francisco states that persons operating or doing business within city limits must obtain a business license, according to the city’s long-term rental FAQ. Daly City’s code enforcement page also makes clear that the city enforces building code, zoning, and property maintenance issues, including unpermitted construction and illegal additions.
That matters for owners of older homes and small multi-unit buildings. If your property has had additions, garage conversions, or unpermitted work over the years, it is smart to understand what is legal before you market the unit or take on a new tenant.
In South San Francisco and Daly City, the most successful small landlords usually treat landlording like a process, not a side task. That means pricing within current market norms, using consistent screening criteria, responding quickly to maintenance, documenting deposits carefully, and handling notices correctly.
This is especially important in South San Francisco, where 51.9% of residents speak a non-English language, according to the city’s demographic data. Clear communication, and translated-facing materials when appropriate, can make leasing and management smoother.
Self-management can work if you have one property, strong organization, and enough time to stay on top of the details. But the legal burden rises quickly during onboarding, turnover, rent increases, and no-fault terminations. In those moments, many landlords benefit from outside help with tenant placement, notices, repairs, and day-to-day management.
If you want a more hands-on, less stressful approach to renting out a home or small multi-unit property in South San Francisco or Daly City, working with a local advisor can help you avoid common mistakes and set up better systems from the start. If you are weighing tenant placement, property management, or an investor strategy for your property, connect with Michael Soon for practical, local guidance.
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