Understanding Capital Improvement Petitions — What San Francisco Property Owners Need to Know

When San Francisco property owners make significant improvements to their buildings — like replacing roofs, upgrading plumbing, or modernizing elevators — they may be eligible to recover a portion of those costs through Capital Improvement Petitions with the Rent Board.

A Capital Improvement Petition allows owners to pass through a percentage of approved improvement costs to tenants as rent increases, provided the improvements benefit the entire property and meet Rent Board requirements.

However, the process can be complex. To qualify, improvements must:

  • Be major and permanent (not routine maintenance).
  • Be necessary for the property’s upkeep or safety.
  • Include detailed documentation — such as contractor invoices, permits, and proof of payment.

Once submitted, the Rent Board reviews the petition to verify costs and determine allowable increases. The Rent Board also notifies tenants, who may have the right to respond or contest the petition.

Common mistakes owners make include incomplete documentation, filing for non-qualifying repairs, or incorrect cost allocations — all of which can lead to delays or rejections.

That’s where Rent Board Passthroughs helps. Our consultants manage the entire process — from preparing documentation to ensuring every cost is properly calculated and justified — saving you time and helping avoid costly errors.

Tip: Always file within the appropriate timeframe after completing improvements. Late submissions can affect eligibility.

Need help preparing your Capital Improvement Petition?
Contact Rent Board Passthroughs for a consultation today.