This is my first time self-managing a property.Market rate rent is about $5400 to $6000 a month on 3 bedroom 2 bath SFH in San Francisco. There's another bathroom downstairs (renovated) and large room downstairs (needs new floor but is painted and has new lights) which has a lot of old things from the previous owner. This downstairs unit could possibly get another $1900 to $2000. There's also a good size backyard for S.F. I'm renting out to a family member and charging $1900 a month rent for 1 bedroom. I had planned to rent out the master bedroom with private bathroom for $2000 a month and the other bedroom for $1900. She just happens to be the only tenant along with her boyfriend for now. My intention was to get roommates for the other 2 bedrooms, preferably her friends or someone who's not a random stranger. So they get the whole house for now for $1900 with brand new everything in kitchen, bathrooms, lights, appliances, etc. She is helping me clean out the stuff downstairs. A regular tenant wouldn't be okay with all the excess stuff so this is why I did this arrangement instead of letting the house sit empty earning $0 rent. This whole process has been stressful while working a full time job.

I know I set a bad precedent by allowing late rent and not enforcing late fees trying to be nice to family. I added an addendum with $100 garage use fee once the garage doors and openers were replaced, which she said she couldn't pay. I'm also currently paying for utilities (electric/gas), water, and trash/recycling. The lease also states that the tenant is supposed to reimburse me for the electric/gas and water bills. I haven't received any reimbursement. The lease started on Sept. 1st. I wrote the lease up using a template a landlord friend sent me.

She has also vaped in the house in front of me when the lease clearly states no smoking or vaping of any product. I asked her to stop vaping in the house and to go outside. Instead of apologizing and stopping the vaping, her defense was "how do you know if tenant is vaping?" We get into an argument and she said she would move out but it's $2800 to $3200 for a 1 bedroom apartment in San Francisco or they go share a 2 bedroom with friends. If she really pushed the issue she could make me pay a relocation fee (this is a thing in the Bay Area if you're making a tenant move out) but she violated the lease terms and trying to take me to court seems unlikely (not impossible). She also claims that I allowed her to use the other bedroom as an office, which I didn't.

My friend advised me to get a property manager immediately and have a new lease stating that they're renting out 1 bedroom, move their belongings out of the other 2 bedrooms and immediately have the utilities switched in the tenant's name, which she would need to call to start but with this rift, I'm not sure this would happen. Hire someone to haul all the stuff away in the downstairs area instead of sorting through the stuff like I have been. Another landlord friend said that SFH in S.F. aren't under rent control and if there are roommates, the current tenant is the Master Tenant and a lease is drawn up with the roommates not with me the landlord. Other tenants pay the Master Tenant rent then I get the entire rent. If it's consider a multi-unit, I could be subject to rent control, if I rent out the downstairs as a separate unit or the other bedrooms (separate leases with each roommate). Is this correct?

I'm going to look like the bad person if I evict a family member. I'm renting at a loss with just $1900 rent since I took out an equity line to pay for the renovations instead of being cash flow positive. Also does anyone have a property manager they use in S.F.?

San Francisco, California

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