Corporate Rentals Move Into San Francisco’s Rent Controlled Buildings


TO OUR ORIGINAL SERIES PROJECT HOME. AND $18 BILLION INDUSTRY IN THE U.S. SAN FRANCISCO IS AT THE CENTER OF IT. CORPORATE RENTALS. SUSIE SHOWS US HOW LANDLORDS LOOKING FOR BIG BUSINESS ARE DISRUPTING THE AFFORDABLE HOUSING MARKET. Reporter: PEOPLE ARE STARTING TO FEEL HOPELESS. THEY ARE MOVING AWAY. MY MOTHER WAS BORN HERE AND I AM NOT MOVING AWAY. Reporter: SARAH’S CHILDHOOD DREAM WAS TO LIVE IN AN APARTMENT IN THE CENTER OF SAN FRANCISCO. FOR THE PAST 10 YEARS AND HER APARTMENT WERE CABLE CARS CRISSCROSS IN FRONT OF HER DOORWAY. THAT DREAM HAS BEEN HER REALITY. A SERIES OF STRANGERS DOWN THE HALL HAVE HER WORRIED ABOUT BEING SQUEEZED OUT. YOU LOOK IN THERE LOOKS LIKE A HOTEL. Reporter: FOR THE PEOPLE RENTING THIS ROOM THAT IS ESSENTIALLY WHAT IT IS. HER ENTIRE BUILDING USED TO BE RENT-CONTROLLED APARTMENTS. RECENTLY HER LANDLORD VERITAS INVESTMENTS STARTED RENOVATING THE VACANT UNITS AND TURNING THEM INTO CORPORATE RENTALS. INTERNAL DOCUMENTS OBTAINED EXCLUSIVELY BY KPIX SHOW THIS WAS THE COMPANY’S GAME PLAN ALL ALONG. SMALL CHEAP AND QUICK IMPROVEMENTS TO CONVERT THESE RENT-CONTROLLED UNITS TO TEMPORARY FURNISHED RENTALS.>THEY TAKE AWAY FROM RENT- CONTROLLED UNITS THAT SHOULD GO TO PEOPLE LIKE MYSELF. Reporter: IS A BOOMING BUSINESS OF SAN FRANCISCO. SITES LIKE SAUNDERS AIRBNB FOR WORK AND NEARLY A DOZEN OTHERS ADVERTISED THE OPPORTUNITY TO FEEL LIKE YOU LIVE IN SAN FRANCISCO. THE SITES HAVE TO ABIDE BY SHORT-TERM RENTAL LAWS PUT IN PLACE IN 2015 THAT FOR BID RENTALS OF FEWER THAN 30 DAYS. THE SHORT-TERM RENTAL LAWS WERE INTENDED TO PROTECT SAN FRANCISCO’S PRECIOUS AND EXTREMELY EXPENSIVE HOUSING STOCK. SUPERVISOR AARON PUSH FOR THE REGULATIONS FOUR YEARS AGO.>DO YOU THINK THE CITY MADE A MISTAKE BY NOT SEEING THIS COMING A COUPLE YEARS AGO? MONEY IS LIKE WATER. IT FINDS A NEW PLACE TO FLOW. REGULATORS AND BOARDS OF SUPERVISORS ARE ALWAYS FINDING WAYS TO REGULATE NEW LOOPHOLES. A NEW FRONTIER WILL BE I DON’T KNOW. IT IS NOT TOO LITTLE TOO LATE. Reporter: HE IS PUTTING TOGETHER A NEW ORDINANCE. THIS ONE TARGETING CORPORATE RENTALS. IT WOULD MAKE IT ILLEGAL TO TURN A RENT-CONTROLLED APARTMENT INTO A CORPORATE RENTAL PERIOD. IT IS NOT AS THOUGH THEY CANNOT RENT THE UNITS FOR LOTS OF MONEY. IT IS AS IF THEY WILL HAVE TO RENT THEM TO A REAL PERSON AND THEY WILL BE SUBJECT TO RENT CONTROL. SMALL PROPERTY OWNERS ARE NOT DOING CORPORATE RENTALS. IT IS A PHENOMENON OF LARGE CORPORATE APARTMENT OWNERS. WHEN YOU LOOK AT IT BUILDING LIKE THIS YOU SEE THE SAME FLOOR LAMP IN THE SAME DESK IN EVERY SINGLE UNIT. Reporter: PUSHING FOR THE CITY TO TAKE ACTION ON CORPORATE RENTALS FOR SEVERAL YEARS. HE LIVES IN THE MISSION DISTRICT AND WORRIES ABOUT THE OTHER SIDE OF THIS BUSINESS. NEW DEVELOPMENTS THAT ARE 100% CORPORATE RENTALS. IS NOT GOING TO THE PEOPLE. Reporter: THE ORDINANCE WOULD ATTEMPT TO REGULATE THIS TOO. NEW CONSTRUCTION WOULD BE REQUIRED TO HAVE AFFORDABLE UNITS SET ASIDE. HE SAID IT IS LARGE BUILDINGS LIKE THIS THAT FRUSTRATE HIM THE MOST. BECAUSE SO MANY UNITS SIT VACANT FOR MONTHS. WE TRACK THE BUILDING AT 600 MS FOR A YEAR AND A HALF. IT HAS 40% OF UNITS ON FONDER. THEY MOSTLY REMAIN EMPTY. Reporter: THE AVERAGE CORPORATE RENTAL WILL RUN $160 A NIGHT. A HOTEL IN THE SAME NEIGHBORHOOD IS LIKELY TO BE AROUND DOUBLE THAT. A RENT-CONTROLLED UNIT IF THERE IS BUILDING THAT WENT FOR $1500 A MONTH CAN NOW FETCH NEARLY $5000. VERITAS INVESTMENTS THE OWNER OF SERAS BUILDING RELEASED THE STATEMENT THAT READS IN PART THE SHORT-TERM RENTAL UNITS CAN PROVIDE A SOLUTION FOR PEOPLE JUST MOVING INTO THE CITY AND FOR LOCALS WHO NEED A TEMPORARY PLACE TO STAY FOR VARIOUS HEALTH PROPERTY OR PERSONAL REASONS. TO BE CLEAR TOURISTS ARE NOT THE TARGET AUDIENCE FOR THESE UNITS. HE SAID FOR HIM THE BOTTOM LINE IS THIS IS YET ANOTHER LOOPHOLE IN THE EVER FLUCTUATING HOUSING MARKET. WHEN HE INTENDS TO CLOSE. SO MORE VISITORS STAY IN HOTELS AND NOT HOMES. IF THEY STAYED IN HOTELS THAT WILL HELP REDUCE THE HOUSING CRISIS AND HOUSING BURDEN. LESS PEOPLE WILL BE LOOKING FOR HOUSING. Reporter: THAT WAY TENANTS LIKE SARAH MIGHT ACTUALLY KNOW WHO THEIR NEIGHBORS ARE.>THE FEELING IT IS ERODING AWAY AT THE COMMUNITY. Reporter: WE DID REACH OUT TO AIRBNB ZOOS AND SAUNTER FOR THE STORY BUT THEY DID NOT WANT TO BE INTERVIEWED. HE WANTED TO TALK TO THEM ABOUT THIS GROWING BUSINESS. IT IS TEMPORARY HOUSING. DO WE KNOW WHO HAS BEEN RINSING THESE OUT? Reporter: THE MAJORITY OF THE PEOPLE WHO ARE RINSING THESE OUT IS TECH COMPANIES. THEY WILL OFFER A DEAL FOR NEW EMPLOYEES IF YOU COME HERE AND YOU WANT TO GET TO KNOW THE CITY. YOU CAN SPEND A COUPLE BUMPS IN ONE OF THESE CORPORATE RENTALS. THEY ARGUE IT IS SOON TO BE LOCALS WHO ARE IN THESE SPACES. WITH SO MANY THINGS THESE BIG TECH COMPANIES JUST BY THE BUILDING. IT IS CHEAPER THAN THAN PUTTING SOMEONE IN CORPORATE HOUSING SOMEWHERE ELSE. Reporter: IT IS AN EXPENSE THEY CAN WITHSTAND.>INTERESTING. REMEMBER TO SEND YOUR IDEAS

100 comments on “Corporate Rentals Move Into San Francisco’s Rent Controlled Buildings”

  1. Quoai Tran says:

    Wow. You pay big money in SF just to see hobos poop and drug heads shoot up

  2. Umeko Candy Kohn says:

    We have these all over my City of Jacksonville in Florida also. It’s really nice to see the development but, to push out Locals. Or the ones in need of Housing , Big Bucks are there Target not families .

  3. Adrian schabbing says:

    Techies have ruined sf

  4. Cal Commercial Insurance says:

    I think Susie is hot!

  5. Erik Wightman says:

    Veritas Rental entryways… a great place to take a dump

  6. Komer West says:

    Funny it's not your building. You payed for it but we will tell you what you can do with it.

  7. Dio Black says:

    Wouldn't corporate rentals fall under the law of having a licensed biz in residential housing area?
    You cant turn permanent housing into hotels, jesus.
    I remember doing tower work in san fran and our company raised our prediem from 125 a day to 250 because of high hotel costs, for those 3 weeks the three of us just drove daily to a $25 a week rv park about 65 miles away and pocketed our prediem as we usually do. But out of all the hotel prices ive seen working around country i havent seen them higher than san fran.

  8. Ricardo Garzon says:

    More people feeling entitled to live somewhere just because their family lived there before them. Complete loser mentality. Move elsewhere and begin to build some wealth for your family and start your own “family area”. Don’t limit yourself to a place that doesn’t want you or you can not afford.

  9. Robin Sumsion says:

    No….every where! In Utah…S.L.C, priorities are toooo much!

  10. Robin Sumsion says:

    Lower prices

  11. Uchiba Uki says:

    Why do you want to live in the city with uneven roads and so expensive!

  12. 1 says:

    Rent control is bullshit. Let the market control itself!

  13. charles yam says:

    Just because you were born in a city does not mean you should be given an apartment to live in for the price you want to pay for. Am I misunderstanding something?

  14. US of Israhell says:

    Nasty Pelosi and Diane Frankenstein approves this.

  15. Fadi Rabadi says:

    Cant agree more. If I am in it to make money I'll leverage it the most I can, rent control actually hurts the real estate market, pretty much live where you can afford !!

  16. Gcal1956 says:

    I live watching San Fransucko news. Makes me realize my city ain’t so bad.

  17. Patrick Lee says:

    Democrats fail again with these artificial loophole regulations. Stop rent control and let market decide who to rent their own properties. Rent controls dont work!

  18. iPlayClashRoyale says:

    When everyone in San Francisco vote for politicians that bring them down.

  19. aaron m says:

    Sounds like a good business strategy maybe San Francisco should build more homes make it less hard less regulations oh yeah I forgot they're in California a liberal shithole can't wait to get out

  20. aaron m says:

    Land of the Free my ass

  21. Aquahobby says:

    Sam Francisco is a fucked up city and not kid friendly at all. I pulled up to that big park in the city and was taking my kids out of the car when out of nowhere these 3 cyclists just whizzed by at like 30mph! And 1 of them had the nerve to yell out to me “watch your kids” while almost taking my baby out. I immediately called him out and told him to “watch yourself bitch”! I yelled at him to come back but he was a techie san francisco weasel with no kids or understanding to slow down around them. Boy if i couldve touched him i would’ve grabbed his throat while pumching his ugly face.

  22. A Breckenridge says:

    Penis

  23. sylencecured3221977 says:

    🤔…
    Luciferian corporate GREED?!
    Money is nothing like water.

  24. Biplav Shrestha says:

    How much are these commentators paid?

  25. zero101 says:

    She got some nice milk jugs..

  26. XO Gram says:

    Omg Sara needs silence. Your keeping unit after family is why they gotta… Pay fmv price bet they wouldn't need to.

  27. Warbird Phoenix says:

    They get everything they deserve,let them rot and priced into ruin…
    Wait,they're already there… Well San Fran,start digging,make that grave nice and deep.

  28. bareftsanger92 says:

    And why exactly ‘should’ it go to you you leech?

  29. Elena Kawaii says:

    Greedy companies

  30. Blackula TheEvilOyo says:

    These poor people are ruining everything

  31. Neil Puckett says:

    Does Mz.Weed have a cat?

  32. Anie says:

    SF has no one to blame but themselves. Stop electing the same type of politicians. You’ll just get more of the same. 🙄

  33. Aaron Osborn says:

    I can’t afford to live in Bel Air yet I’m not complaining and bitching that they need to have affordable rentals for my income bracket😂

  34. Family Phone says:

    As soon as you step outside the first thing you step on is a big pile of human dung!

  35. JASON KASHER says:

    The politicians in California are funny. They want low rent for residents so in return the building owner converts the units to corporate housing. They want more developers to build new affordable housing, but require builders to spend enormous amounts of money on permits, land surveys, and expect you to pay taxes on land while you wait years for permits to get approved. Meanwhile in Orlando I've seen 200 unit apartment buildings get built in about 15 months.

  36. ISJST says:

    PROFITS over People.

  37. SHE SAID WHAT says:

    You probably have so many vacant ugly units vacant. How about you fix those up then rent them for more.

  38. nunn ya says:

    My YouTube algorithm has started to feed me this propaganda…
    My favorite part of the videos is the comments…
    I love the pseudo conservatives that leave comments about San Francisco having never been here.

  39. Da808Legend says:

    Veritas statement “To be clear, tourist aren’t the target audience for these units.” I’m from Hawaii and I was just in SF in july, I thought Hawaii got it bad with tourists. SF is like 10 times worst. You can state whatever you want Veritas, the evidence speaks for it self so stop bull crapping to the media!

  40. Kenny the Clown says:

    Now you guy's see why I ran for Mayor of San Francisco in 2007.

  41. Kenny the Clown says:

    At least you can come out to Fisherman's Wharf and get a FREE balloon.

  42. Just Smile says:

    Bahahahhahahahahahaha suck it SF you libtards

  43. Kirk Wilson says:

    You idiots voted for this, liberals are about the rich getting richer. If you havent figured out that lie yet, then i dont know what to tell you.

  44. Mscar 760 says:

    Thumbs up if you can’t wait for the Tekashi Christmas album!

  45. J S says:

    Sometimes your life dreams get crushed… Sorry lady get over it.

  46. Laura Strong says:

    Money is not like water. Water is not demanded- You are not entitled to money.

  47. Stephan Williams says:

    Capitalism

  48. Owen Frank says:

    Shoutouts to Aaron Peskin. Actually doing his job to represent the locals who should not have to be forced into competing in the corporate circuit.

  49. Johnny Atoms says:

    Every injustice is over something else being of worth, than one another…. no matter where you are from, nor the language.

  50. videodudetv says:

    Another report said NY's newest and tallest in the world apt. bldg is struggling to find renters due to the surplus. If there was a surplus then why are the rents so flipping high???!!!

    Like PG & E, like the medical industry – you are all being screwed over by your gov, big business and those with $/power/influence. When you add it all up it spells you're getting "financially gang raped"! That…is…the…truth.

    Stop spending money.

  51. D F says:

    And the law of unintended consequences stuns the far progressive left once again, the free market will not be dissuaded… Even with what little is left of it..

  52. Carla Simmons says:

    In North Carolina near Charlotte, corporations are buying whole subdivision housing and making them all rentals.

  53. Saul Flores says:

    The more the Planners planned, the more the Planners failed. The more They failed, the more They planned. 😂

  54. Donn Blood says:

    im doing this too, but the other side of the tracks, rent out boxes to sleep in….right in front of this place.complimentary piss bottle.

  55. Freddy Bañuelos says:

    More regulation

  56. Keith Snider says:

    Dystopian Capitalism.

  57. Christine S says:

    Her childhood dream was to live on Powell St.?

  58. bruce wayne says:

    Went there for the first time in august and the city felt so fake. A good 80% of the people I saw and met were just other tourists. It really made me realize how tourism sucks the soul out of places like San Francisco and even Venice.

  59. John A says:

    and who the f wants to live in san francisco anyway.

  60. Shirley Andrade says:

    WHT about the homeless people were's their building's !!! always building but never room for the homeless shame on you corporate companies

  61. Young Grizzly says:

    I live in Florida which isn't as bad yet but I'm looking outside of the south Florida area (West Palm, Fort Lauderdale, Miami) for work and decent prices homes. Here 400k fetches you a 2,000 sq ft home on .25 acre in Georgia you can get 3,000 sq ft on 2 to 20, sometimes 50 acres depending on how far you are from Atlanta. It just makes sense when you see things like that.

  62. Dee Cee says:

    Just close the loophole soon!!!

    It's not about visitors using the temporary rentals but about actually residents not having anywhere to live BECAUSE of so little housing. After all, who cares about "new" people living in the temporarily when actually residents are becoming homeless??!! 😫

    Some of the "reasoning" in this report is just NONSENSE! 😠

  63. Kyler Durden says:

    this lady feels pretty entitled

  64. Kassidy says:

    Fuckers

  65. Artem Morozov says:

    4:48 There is a community in San Francisco?

  66. A Hsu says:

    as a SF resident, vote no on all affordable housing proposals, as it just leads to more taxes and little relief – city budget is over 10 billion!

  67. Canadian kid says:

    They need to clean the swamp in San Francisco and California in general…. This state had gone too hell …..

  68. Michael Naness says:

    everyone even the reporters hate tech lol

  69. Richard Romero says:

    Greed, that's all there is in this world

  70. Malcolm Wallace says:

    Thicc

  71. richard beatty says:

    this makes me FURIOUS–these girly corprate people-GET OUT–sissies

  72. aimee m says:

    Operative word is “feel” like you live in San Francisco. But you will NEVER be a San Francisco native, cultivated in this once beautiful city. You will always be a visitor. Transplants are not natives. Techies are nothing but the demise of the real character of San Francisco.

  73. Allen Garcia says:

    How people getting this apartments???

  74. DammitJanet says:

    sick

  75. Left Right says:

    Should go to renters like herself? Who made her deserve that rental?

  76. TheOerdin says:

    Bus them all out.

  77. John Beer says:

    San Francisco is GAY and not because the homosexuals, lesbian😄😆JEW know what I mean

  78. Getthefuckoffmylawn says:

    Lol people demanding things from someone else's property.

  79. Caucasian African says:

    These control freak morons create their own problems.

  80. Jason Young says:

    California is A HOT MESS !!!

  81. AKEWSD says:

    Because it is legal doesn't not mean its ethical.

  82. Dan smith says:

    OH well, keep voting dumborats and I bet she has been for ever, so tough shit suck it up.

  83. Delilah Rose says:

    Did anyone notice Sarah's last name is "WEED" 😂♥️

  84. Natural Heel says:

    My poor city

  85. James Hudson says:

    if you dont like whats going on in SF then move out of the city to somewhere move affordable

  86. nymfe1 says:

    🚨 That's probably how special interest & foreign nationals are displacing Americans in their own country/communities & influencing the rewriting of the laws to change the demographics of communities to displace citizens and move in people of one nationally to create racially segregated communities!

  87. Donna Joseph-Barford says:

    Apartments are for a temporary living until you buy a home.

  88. Jessica Reid says:

    See what you have done dumb ass Gavin Newsome. You do not think things through, consequences. Your stupidity must be hereditary. Your Aunt is crazy ass N. Pelosi. How is this helping your constituents? This was the plan all along, folks.

  89. Sergio Aguirre says:

    If you cant afford to live there, move
    Nobody owes you anything
    Entitled people are disgusting

  90. Sam Phillips says:

    Why don't you try stop telling people what they're going to do with their own f**** property

  91. m-ok - says:

    The most Democrat liberal and tolerant cities have the worst income inequality and affordable housing. These same Democrats also make sure every single luxury development project is approved fast and satisfies foreign cash buyers.

  92. Andy Bradford says:

    Haha just move out of San Francisco

  93. Robert Montgomery says:

    She comes across as an entitled person who is in favor of anything that helps her. She wants to live in SF but dislikes change not in her favor.

  94. Ana B says:

    WHAT AFFORDABLE RENTAL

  95. Ted Fujii says:

    Why would any one live there.
    It’s become a unaffordable shit hole.
    Unless you like crap on the streets and homeless. Thanks to Gavin Newsome
    Move to San Diego or Huntington Beach.

  96. German Ochoa says:

    Sarah Weed needs to grow up, your government has sold you out hahaha. Instead of impeaching Trump recall Newson. but your too brain washed, Trump did this right? Wrong!

  97. Dream Vacations | Montebello & Associates says:

    I get requests for clients who want to travel and rent a house. I just wont do it.. I blame the cities for not stopping this from the get go. We need to go back to hotels.

  98. Mark Denler says:

    Why is San Francisco liberal? All the rich people I know are repubs. You have to be millionaire to live in SF.

  99. Judith Rhice says:

    This is so sad. They rather put ppl on the street to accommodate themselves. America is going down the drain.

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