Buyout agreements — sometimes called "cash for keys" — are one of the most practical tools SF landlords have for negotiating a voluntary tenant departure. But SF is one of the very few jurisdictions that heavily regulates the buyout process itself. Section 37.9E of the Administrative Code imposes specific pre-negotiation disclosure requirements, written contract requirements, a mandatory 45-day tenant rescission window, and a Rent Board filing obligation. Miss any of these steps and the entire buyout is unenforceable — the tenant gets to keep the money AND stay in the unit.
What a buyout agreement is
A buyout is a voluntary agreement in which the landlord pays the tenant to vacate the unit. Unlike a no-fault eviction, no grounds are needed — the tenant simply agrees to leave in exchange for compensation.
For landlords, buyouts offer several advantages over no-fault evictions:
- No specific ground required (unlike OMI, demolition, capital improvement, Ellis Act)
- Can accomplish what a no-fault eviction couldn't (e.g., displacing a protected tenant who otherwise couldn't be evicted)
- Avoids the legal cost and time of an unlawful detainer action
- Reduces the risk of a tenant defense that succeeds at trial
The tradeoff is cost. Buyouts in SF regularly reach $50,000-$150,000 per unit, sometimes higher for well-located, long-tenanted units. But even at these amounts, buyouts can be economically preferable to no-fault eviction when relocation payments, legal fees, and vacancy costs are calculated together.
Section 37.9E: the four requirements
For a buyout to be enforceable in SF, four specific procedural requirements must be met:
Requirement 1: Pre-negotiation written disclosure. Before any buyout offer or negotiation begins, the landlord must give the tenant a specific written disclosure containing statutory language.
Requirement 2: Written contract with statutory terms. The final agreement must be in a specific written form with mandatory disclosures.
Requirement 3: 45-day rescission right. The tenant can rescind the agreement within 45 days of signing, without penalty, and without returning any money received.
Requirement 4: Rent Board filing. The landlord must file a copy of the executed agreement with the Rent Board within 59 days of full execution.
Fail any of the four and the buyout is voidable at the tenant's election. The tenant can keep the money AND remain in the unit.
Requirement 1: Pre-negotiation disclosure
Before the landlord makes any buyout offer or begins any negotiation with the tenant, the landlord must give the tenant a written disclosure in the form specified by the Rent Board. The disclosure must state (verbatim or in substantially similar language):
- The tenant has the right to consult with a tenant attorney before signing anything
- The tenant has the right to reject or accept any offer without adverse consequences
- The buyout is entirely voluntary
- If the tenant signs, they have 45 days to rescind
- The tenant has the right to contact the Rent Board with questions
The Rent Board publishes a standard form landlords can use. Using the form verbatim is safest.
The disclosure must be signed by the tenant acknowledging receipt and dated. Landlords should retain the signed acknowledgment.
Requirement 2: The written agreement
The buyout agreement itself must be in writing and include:
- The specific dollar amount (or non-cash consideration) paid to the tenant
- The date by which the tenant must vacate
- A statement that the tenant is waiving no rights other than continued tenancy
- A statement of the 45-day rescission right
- Acknowledgment that the tenant has been advised to consult an attorney
- Signatures of all named tenants
- Effective date
The agreement should be dated with the actual signing date, since the 45-day rescission window runs from signing.
Requirement 3: The 45-day rescission right
Within 45 days of signing the agreement, the tenant can rescind by delivering written notice to the landlord. On rescission:
- The tenant does not have to vacate
- The tenant does not have to return any money already received
- The agreement is void
- The tenancy continues as before
This is materially different from most contract law. In a normal contract, both parties are bound at signing. Here, the tenant has a unilateral 45-day escape.
Practically, this means:
- Landlords should not treat the buyout as done until the 45-day window has passed
- Landlords should not begin marketing the unit or planning renovations until the window closes
- Landlords should structure payment such that not all money is transferred until the window closes (though the tenant is entitled to keep any partial payment even on rescission)
Requirement 4: Rent Board filing
Within 59 days of full execution of the buyout agreement, the landlord must file a copy with the SF Rent Board.
Filing requirements:
- Complete copy of the executed agreement
- Redacted for tenant privacy per Rent Board guidelines
- Filed via the Rent Board's online system or in person
The Rent Board maintains a public database of buyout agreements. This creates market visibility — a landlord in the same neighborhood negotiating a subsequent buyout is likely to see the amounts paid in prior deals.
What a fair buyout amount looks like
There's no legally-mandated minimum. Amounts vary widely based on:
- Length of tenancy — longer tenancies command higher amounts
- Unit's below-market rent — the greater the gap between current rent and market, the higher the buyout
- Tenant demographics — protected tenants (elderly, disabled, families with children) command higher amounts because no-fault eviction alternatives are limited
- Market conditions — competitive markets push amounts up
- Landlord's alternatives — if OMI or Ellis are unavailable, negotiating leverage shifts to the tenant
Rough ranges observed in recent SF market:
- Standard tenant, 3-5 year tenancy: $30,000 – $75,000
- Long-term tenant, 10+ years: $75,000 – $200,000+
- Protected tenant, long tenancy: $150,000 – $400,000+
These are illustrative, not authoritative. The Rent Board's public database of filed buyouts is the best empirical reference.
A specific worked example
Consider a landlord who wants unit #3 vacated in their 6-unit Mission building, where a tenant has been renting for 12 years at $2,200/month while comparable market rent is $4,500/month.
Step 1: Pre-negotiation disclosure. Landlord gives the tenant the Rent Board's standard disclosure form. Tenant signs acknowledging receipt. Date: Day 1.
Step 2: Negotiation. Landlord offers $85,000 to vacate within 90 days. Tenant counters $110,000. They agree on $95,000. Written agreement executed on Day 21.
Step 3: 45-day rescission window. From Day 21 to Day 66, tenant can rescind unilaterally. Landlord does not begin planning renovation, marketing, or accepting new applications. Landlord may make partial payment during this window at their discretion, understanding that the tenant may keep it even on rescission.
Step 4: Rent Board filing. Landlord files the executed agreement with the Rent Board on Day 30 (well within the 59-day window).
Step 5: Move-out. On Day 90 (or whatever move-out date was agreed), tenant vacates. Landlord makes final payment.
What to do next
Buyouts require careful procedural execution. The consequences of skipping steps aren't just financial — they can make an otherwise-completed transaction unwind entirely.
For any SF landlord contemplating a buyout, the specific requirements of Section 37.9E should be understood before any conversation with the tenant. LandlordOS will surface these requirements for SF properties once the rules are encoded. Add your property to see the compliance record for your specific unit.