Part of the outrage is that the owner is apparently being dishonest and provides no justification (and it's hard to imagine any reasonable justification) for suddenly demanding a 3x and security deposit increase.
What additional value has the owner provided the tenant to justify such a large increase?
If the owner wants the tenant out, the owner should say so, not hide behind some ridiculous attorney letter and extortionist rent increase.
I think it's pretty clear in this situation that the justification is "We don't want to rent our house to you anymore so we are raising the price to a point where you will move out."
Hah yes. I almost didn't leave this comment due to tempting that other flame war. But it was the best example I could think of off the top of my head of an unstated but clear communication.
I am not completely familiar with SF's laws, but typically rent-control laws state that an owner may only evict a tenant for good cause and that leases are otherwise indefinite, at the tenant's discretion.
In this case, the owner has evaded rent-control to extrajudicially evict the tenant through extortionist pricing.
The law as it pertains to these contracts or all residential tenancy contracts in the US?
Are 3-, 6- and 12-month leases common? All the residential arrangements I know of here in Australia would be 6- or 12-monthly. Gives a tenant some certainty, but also enables a property owner to move back in, sell, redevelop, etc.
The law as it pertains to rent-controlled jurisdictions.
All lengths are common, though 12-month is perhaps the most common. In rent-controlled jurisdictions, when a lease expires it converts to a month-to-month tenancy where the owner may only evict for good cause (failure to pay rent, gross negligence, illegal activities, etc), but a tenant must provide 30 days notice of intent to abandon.
Often an owner is allowed to require a lease extension be signed, only if the extended lease is materially identical to the current lease except in expiration date (including length of the lease).
Almost everywhere in the US the standard is 12 month leases. Sometimes a landlord will do a 6 month lease. When these leases lapse (or if no lease was signed), the relationship is governed by landlord-tenant law, which usually states that the landlord must provide 14 or 30 days of notice when removing a month-to-month tenant.
I'm not very familiar with rent control practices, but in 99.9% of the US, this thing where the tenant is allowed to indefinitely block the usage of your own home is not done.
What additional value has the owner provided the tenant to justify such a large increase?
If the owner wants the tenant out, the owner should say so, not hide behind some ridiculous attorney letter and extortionist rent increase.