I actually know a few homeowners in San Francisco in this situation right now. They have extra units in their building (which is also where they live), and choose to leave it vacant rather than deal with the hassle of rent control. They do not need the income and would rather not bother with possibly getting a tenant who never leaves. It's not economically rational, but people are not always rational, especially when dealing with their homes.
The building I live in is also in the situation currently where a unit is being left vacant in anticipation of a condo conversion in a couple years.. San Francisco has a very complicated condo conversion law but part of it is that during conversion some existing tenants have to be offered lifetime leases which can never be increased. Leaving units vacant is a rational way of dealing with that.
> They have extra units in their building (which is also where they live), and choose to leave it vacant rather than deal with the hassle of rent control.
Good for them. Better that they do this than take the rental income, and later whine about how terribly unfair renter protection laws are. :)
Based on my immensely scientific[0] survey of Internet Message Boards (and personal experience in the American Southeast), it seems that potential landlords sometimes forget that when they rent their property to others for use as the renters' home, the landlord loses almost all control over that property. This is right and just: everyone deserves a safe, secure, private place to live.
> Leaving units vacant is a rational way of dealing with SF's condo conversion laws.
Again, it's good for the landlords that they showed this much restraint.
The condo conversion laws prevent landlords from turning their apartment stock (that pays off smaller amounts over time) into condo stock (that pays off one large lump sum). These are sane and rational laws to have in cities that (for a variety of disgusting reasons) find themselves unable to create sufficient housing to meet demand.
The problem with leaving units vacant though is it takes those units off the market, driving rents up for the remaining units. That is the end result of overly aggressive rent control, and one of the big problems in San francisco right now.
The building I live in is also in the situation currently where a unit is being left vacant in anticipation of a condo conversion in a couple years.. San Francisco has a very complicated condo conversion law but part of it is that during conversion some existing tenants have to be offered lifetime leases which can never be increased. Leaving units vacant is a rational way of dealing with that.
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