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
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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
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| Remedies |
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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
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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.
- Mobilehome Park Conversion (§ 9.76.120) — mobilehome park residents only
Who this affects
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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