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Palo Alto · Renting & eviction

Renting in Palo Alto: the rules that apply

Palo Alto adds its own just-cause rule, relocation pay and rental dispute mediation. Its rent review covers mobilehome park spaces only, and state law sets the rent cap for covered units.

Key points

  • Rent increases: State law caps increases on covered units at 8.6% from August 1, 2026 through July 31, 2027; city rent review covers mobilehome park spaces only.
  • Just cause: City rule: in covered units, ending a tenancy needs a just cause after 6 months of continuous, lawful occupancy.
  • Relocation pay: City rule: covered no-fault evictions pay 1 month's rent; at 10+ unit properties, base amounts of $7,000 to $17,000 rise yearly with CPI.
  • Notices: City rule: every lease or written change of terms must include a renter-rights summary and the mediation and retaliation notice.
  • Security deposits: City rule: unfurnished-rental deposits are limited to 1½ months' rent, not counting first month's rent; the state cap, lower for most landlords, still applies.
  • Hotel tax: City rule: the hotel and short-term rental tax is 15.5% of the rent, collected from each guest with the rent.

Each rule below is marked Palo Alto code or CA state law and links to the section it comes from (checked October 2026). General information, not legal advice.

Rent increases

Palo Alto code State law caps increases on covered units at 8.6% from August 1, 2026 through July 31, 2027; city rent review covers mobilehome park spaces only.

All 7 Palo Alto rules on rent increases, with the code text and the state law underneath →

Eviction and just cause

Palo Alto code City rule: in covered units, ending a tenancy needs a just cause after 6 months of continuous, lawful occupancy.

All 12 Palo Alto rules on eviction and just cause, with the code text and the state law underneath →

Relocation payments

Palo Alto code City rule: covered no-fault evictions pay 1 month's rent; at 10+ unit properties, base amounts of $7,000 to $17,000 rise yearly with CPI.

All 13 Palo Alto rules on relocation payments, with the code text and the state law underneath →

Notices

Palo Alto code City rule: every lease or written change of terms must include a renter-rights summary and the mediation and retaliation notice.

All 3 Palo Alto rules on notices, with the code text and the state law underneath →

Security deposits

Palo Alto code What Palo Alto's code adds
Deposit limit
  • 1½ months’ rent.
    Applies: Unfurnished rentals, not counting the first month’s rent. State law now caps most landlords’ deposits lower than this, and the state cap still applies.
    § 9.68.070 · code text
    A landlord may not demand or receive security, however denominated, in an amount or value in excess of an amount equal to one and a half months’ rent, in the case of unfurnished rental units, in addition to any rent for the first month paid on or before initial occupancy.

CA state law Underneath, California law still applies. Security deposit cap: One month's rent, on top of the first month's rent (Civ. Code § 1950.5(c)(1), (c)(6)). Deposit return deadline: 21 calendar days after the tenant moves out, with an itemized statement of any deductions (Civ. Code § 1950.5(h)(1)). California security deposit law — the full state rule →

Retaliation

Palo Alto code What Palo Alto's code adds
Protected activities
  • Starting or taking part in the city's rental dispute conciliation and mediation.
    § 9.72.060 · code text
    No landlord or tenant who has been a party to conciliation and mediation of rental housing disputes pursuant to this chapter may undertake or cause any type of retaliatory act or omission against another party as a result of the other party having invoked or participated in the dispute resolution process.
Remedies
  • The facts are referred to the city attorney for action.
    Applies: If the facilitation administrator finds enough evidence to investigate retaliation.
    § 9.72.060 · code text
    In the event that the facilitation administrator concludes that there is sufficient evidence to investigate an act or omission of retaliation under this provision, the relevant facts will be referred to the city attorney for appropriate remedial action.

CA state law Underneath, California law still applies. Retaliation protection period: For 180 days after a tenant complains about habitability (to the landlord or an agency), the landlord may not evict, raise rent or cut services in retaliation (Civ. Code § 1942.5(a), (b)). Retaliatory eviction in California — the full state rule →

Harassment and lockouts

CA state law Palo Alto has no rule of its own on this, so California law applies. Lockouts and self-help eviction banned: A landlord may not change locks, remove doors or windows, or remove the tenant's belongings to force a tenant out (Civ. Code § 789.3(b)). Utility shutoffs banned: A landlord may not cut off water, heat, electricity, gas or other utilities to force a tenant out (Civ. Code § 789.3(a)). Tenant harassment and lockouts in California — the full state rule →

Repairs and habitability

CA state law Palo Alto has no rule of its own on this, so California law applies. Duty to keep the unit habitable: The landlord must deliver a unit fit to live in and repair conditions that make it untenantable (Civ. Code § 1941). Repair and deduct: A tenant may make a repair the landlord neglects and deduct the cost from rent, up to one month's rent, no more than twice in any 12 months (Civ. Code § 1942(a)). Habitability and repair-and-deduct — the full state rule →

Landlord entry

CA state law Palo Alto has no rule of its own on this, so California law applies. Landlord entry notice: Reasonable written notice, presumed to be 24 hours, and entry only during normal business hours (Civ. Code § 1954(d)(1), (e)). Landlord entry notice in California — the full state rule →

Hotel and short-term rental tax

Palo Alto code What Palo Alto's code adds
Tax rate
  • 15.5% of the rent.
    § 2.33.020 · code text
    For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax in the amount of fifteen and one-half percent of the rent paid by the transient.
Who collects it
  • The operator collects the tax from each guest at the same time as the rent.
    § 2.33.040 · code text
    Each operator shall collect the tax imposed by this ordinance to the same extent and at the same time as the rent is collected from every transient.

Condo conversions

Palo Alto code 1 below-market-rate rental unit for every 2 market-rate units converted. Tenants of at least two-thirds of the rental units must consent.

All 5 Palo Alto rules on condo conversions, with the code text →

Rental registration and inspections

Palo Alto code The Palo Alto city council sets the amount. The penalty is set by ordinance or resolution, in addition to the registration fee.

All 5 Palo Alto rules on rental registration and inspections, with the code text →

Other Palo Alto rules on this

Palo Alto's code also has these chapters. We have not summarized their values on this page yet; read them in the library.

Who this affects

TenantsLandlordsProperty managers

Frequently asked questions

How much can a Palo Alto landlord charge for a security deposit?

City rule: unfurnished-rental deposits are limited to 1½ months' rent, not counting first month's rent; the state cap, lower for most landlords, still applies.

What is the hotel tax on short-term rentals in Palo Alto?

City rule: the hotel and short-term rental tax is 15.5% of the rent, collected from each guest with the rent.

General information, not legal advice.

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