Ellis Act in San Francisco: 2026 Landlord Exit Playbook
The nuclear option for SF landlords who want out of the rental market — the full process, real costs, timelines, and what you can do with the building after.
The Ellis Act gives San Francisco landlords the right to permanently withdraw all units in a building from the rental market. The process requires filing notice with the SF Rent Board, paying relocation assistance to each tenant (currently ranging from roughly $7,000 to $25,000+ per unit), providing 120 days notice (one year for seniors/disabled), and accepting that you cannot re-rent the units for at least five years. Former tenants have right of first refusal for 10 years if you ever re-rent.
I call the Ellis Act the nuclear option — not because it's dramatic, but because it's irreversible. When an SF landlord files for Ellis Act withdrawal, they're not just ending a tenancy. They're exiting the rental market entirely, with all the relocation costs, legal scrutiny, and re-rental restrictions that come with it. I've worked with SF building owners who used it wisely and came out well. I've also seen owners rush into it without understanding the full cost picture and get blindsided.
Here's the honest version of what the Ellis Act is, what it actually costs in 2026, and what your realistic options are once you've gone through it. If you're contemplating using the Ellis Act, this is the complete picture — no sugarcoating, no law-firm hedging.
One thing to say upfront: this is not legal advice. Ellis Act proceedings in SF are heavily litigated, frequently challenged by tenants, and subject to city oversight. You need an attorney who specializes in SF landlord-tenant law before you file anything. What I can give you is the framework so you understand what you're walking into.
What the Ellis Act Actually Does
The Ellis Act (California Government Code Section 7060) was passed by the state legislature in 1985, specifically to override San Francisco's attempts to prevent landlords from going out of the residential rental business. The Supreme Court had ruled cities couldn't force landlords to rent indefinitely — the Ellis Act codified that right statewide.
The right it gives you: a landlord can withdraw ALL units in a building from the residential rental market. You cannot selectively Ellis only certain units. The entire building comes off the rental market. This is the "nuclear" aspect — it's all or nothing.
What it does not give you: the right to immediately displace tenants. The process requires substantial advance notice, payment of city-mandated relocation assistance, and compliance with strict filing requirements. SF's implementation of Ellis Act is far more tenant-protective than the bare state statute requires — the city has maximized tenant protections within the framework the law allows.
You cannot use the Ellis Act to remove one tenant you dislike while keeping others. All units in the building must be withdrawn. If you try to re-rent even one unit within five years, you face serious legal exposure and may owe the displaced tenants significant damages.
Step-by-Step: The Ellis Act Process in SF
Relocation Assistance: The Real Cost in 2026
This is where most SF landlords get surprised. Relocation assistance amounts are set annually by the SF Rent Board and are substantial. They are not negotiable. You pay them or the withdrawal is invalid.
| Tenant Category | Approximate 2026 Amount | Notes |
|---|---|---|
| Standard tenant (non-protected) | ~$7,800-$10,000 per unit | Based on bedroom count; check sfgov.org/rentboard for current exact figures |
| Qualified senior (62+) | ~$18,000-$22,000 per unit | Plus extended one-year notice right |
| Disabled tenant | ~$18,000-$22,000 per unit | Plus extended one-year notice right |
| Catastrophically ill tenant | Maximum amount | Additional protections; consult attorney |
For a four-unit building with two standard tenants and two seniors, a rough estimate for relocation assistance alone is $55,000-$65,000+. Add attorney fees ($10,000-$20,000), and the Ellis Act process easily costs $70,000-$90,000 or more before you touch the building for renovation or conversion.
Relocation assistance amounts are adjusted annually by the Rent Board. The amounts in this article are approximate guidance based on 2026 data. Always confirm current figures directly with the SF Rent Board at sfgov.org/rentboard before filing. Using outdated amounts can invalidate your withdrawal.
What Tenants Can Do to Fight Back
SF tenants facing Ellis Act eviction have significant legal tools. Tenant organizations like the SF Tenants Union actively assist displaced tenants, and the city's attorney's office has pursued cases against landlords who misuse the Ellis Act. Here's what tenants can do:
Challenge Procedural Defects
If the landlord filed incorrect paperwork, served notice improperly, or paid incorrect relocation amounts, tenants can challenge the withdrawal. SF courts have invalidated Ellis Act proceedings on procedural grounds. This is exactly why landlords need experienced attorneys — the tenant advocacy bar is equally experienced.
Demand One-Year Notice (Seniors and Disabled)
Any tenant who is 62 or older or who qualifies as disabled has the right to request a one-year notice period instead of 120 days. This right is absolute and must be honored. In a building with several senior tenants, this can extend the timeline significantly.
Monitor for Re-Rental Violations
Former tenants have standing to sue if a landlord re-rents within five years. They also have right of first refusal if the units are re-rented within ten years. Tenant organizations track Ellis Act buildings and will alert former tenants if violations occur.
What You Can Do With the Building After Ellis Act Withdrawal
Owner-Occupancy
The simplest post-withdrawal use: live in the building yourself. You or a family member can occupy the units. There is no minimum occupancy period mandated specifically by the Ellis Act, but re-renting before five years is prohibited.
TIC Conversion
Tenants in Common (TIC) ownership is common for SF buildings that have gone through Ellis Act. Multiple buyers purchase fractional interests in the building. No condo conversion lottery required. TIC financing is available but more complex than standard condo financing. See my full guide: TIC vs Condo in San Francisco.
Condo Conversion
SF has a condo conversion lottery that limits how many buildings can convert each year. Ellis Act buildings may have a pathway to conversion but must enter the lottery system. The process can take years. Consult an SF condo conversion attorney for current lottery status.
Sale to Developer
Vacant SF buildings with Ellis Act certificates sell at a premium compared to occupied rent-controlled buildings. Developers who want to renovate and resell as TICs or condos are active buyers. Pricing reflects the development potential minus conversion costs.
In 2026, the SF market for vacant post-Ellis buildings is active but narrow. Buyers are primarily TIC developers, owner-occupant groups (groups of buyers who pool to purchase a building together as TICs), and value-add investors. Marketing directly to this buyer pool — rather than through general MLS exposure — typically generates better price outcomes.
Alternatives to the Ellis Act Worth Considering First
Cash-for-Keys Buyout
Negotiate voluntarily with each tenant for them to vacate in exchange for a cash payment. No legal process. No public filing. No re-rental restrictions. In SF, cash-for-keys amounts typically run $30,000-$100,000+ per unit for long-term below-market tenants — high, but no Rent Board oversight and no five-year re-rental ban.
Sell With Tenants in Place
Sell the building as-is to a value-add buyer who will manage the tenant situation themselves. You walk away clean. Expect a 15-25% discount compared to vacant-building comps, but zero legal process and no relocation costs out of pocket.
Owner Move-In (OMI) Eviction
If you only need one or two units vacant (for yourself or family), an OMI eviction may be a better fit than full Ellis Act withdrawal. OMI has its own requirements and restrictions but doesn't require withdrawing the entire building from the rental market.
Oakland also has an Ellis Act process with different costs and timelines. Read Ellis Act in Oakland: 2026 Owner Walkthrough for the comparison.
Ellis Act SF Quick Reference
Frequently Asked Questions
Related Resources
Ready to Exit Your SF Rental Property?
Whether that's Ellis Act, cash-for-keys, selling with tenants, or something else — I'll help you run the numbers and choose the right path.
- Ellis Act cost analysis for your specific building
- Cash-for-keys vs. Ellis Act comparison
- Buyer network for post-Ellis SF buildings
