Palo Alto · Renting & eviction

Renting in Palo Alto: the rules that apply

Palo Alto requires just cause sooner than state law and relocation pay for no-fault evictions, and every lease must describe renter rights. Its own rent review covers only mobilehome park spaces; state law sets the rent cap for covered units.

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Key points

Just cause: City rule: a tenancy may end only for just cause after 6 months of continuous, lawful occupancy, in all rental units except listed exclusions.
Rent cap: State law caps rent increases on covered units at 8.6% for August 1, 2026 through July 31, 2027; city rent review covers only mobilehome park spaces.
Relocation pay: City rule: no-fault evictions of covered tenancies require 1 month's rent; larger CPI-adjusted amounts apply at properties with 10+ rental units.
Notice to end: State law: 60 days' notice to end a tenancy, or 30 days if the tenant has lived there less than 1 year.
Lease notice: City rule: every lease must include a notice of the right to mediation, which must be requested within 21 days of learning the facts.

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 rent increases on covered units at 8.6% for August 1, 2026 through July 31, 2027; city rent review covers only mobilehome park spaces.

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: a tenancy may end only for just cause after 6 months of continuous, lawful occupancy, in all rental units except listed exclusions.

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: no-fault evictions of covered tenancies require 1 month's rent; larger CPI-adjusted amounts apply at properties with 10+ rental units.

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

Notices

Palo Alto code What Palo Alto's code adds
What a notice must say	A summary of renter rights, including protection against retaliation, plus the facilitation administrator's name, address, and phone. Applies: With every rental agreement, lease, or written change to tenancy terms. § 9.72.070 · code text Every rental agreement, lease, or other written document evidencing or changing the terms of tenancy for a residential rental property to which this chapter applies shall include or be accompanied by the following: A notice summarizing the rights afforded by this chapter, including but not limited to the protection against retaliation; and the name, address and telephone number of the facilitation administrator. In capital letters at least 14-point: the right to mediation of landlord-tenant disputes, that mediation must be requested within 21 days of learning the facts, the city facilitation administrator's contact, and protection from retaliation Applies: in every rental agreement, lease or written change of tenancy terms § 9.72.070 · code text The notification shall be capitalized text at least fourteen points in size and shall state: In English, Spanish, Chinese, and Russian, using the city's translated form. Applies: For the mediation and retaliation notice in rental agreements and leases. § 9.72.070 · code text The notification shall be provided in English, Spanish, Chinese and Russian in the translated form prepared and published by the facilitation administrator.

CA state law The statewide rule underneath
Notice of a rent increase	At least 30 days' notice for an increase of 10% or less; at least 90 days for an increase of more than 10% Applies: The 10% is measured against the rent charged at any time in the 12 months before the increase, counting all increases in that period together. Civ. Code § 827(b)(2), (b)(3)(A)
Notice to end a month-to-month tenancy (landlord)	60 days' notice; 30 days if the tenant has lived there less than one year Applies: Where the unit is covered by just cause (Civ. Code § 1946.2) or a local ordinance, the notice must also state a qualifying cause. Civ. Code § 1946.1(b), (c)
Notice to end a month-to-month tenancy (tenant)	At least as long as the rental period (one month for a month-to-month tenancy) Civ. Code § 1946.1(b)
30-day notice when the unit is sold to an owner-occupant	30 days' notice when a separately sellable unit is in escrow to a natural person who will live there for at least a year Applies: Notice within 120 days of opening escrow, given once, and all § 1946.1(d) conditions met. Civ. Code § 1946.1(d)
Notice to pay rent or quit	3 days, not counting Saturdays, Sundays and judicial holidays, stating the amount due and how to pay Applies: May be served any time within one year after the rent became due. Code Civ. Proc. § 1161(2)
Notice to cure a lease violation or quit	3 days, not counting Saturdays, Sundays and judicial holidays, to perform the broken lease term or leave Code Civ. Proc. § 1161(3)
No fee for serving notices	A landlord may not charge the tenant a fee for serving or posting a notice Civ. Code § 1946.1(i)

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 What Palo Alto's code adds
Limits on conversions	1 below-market-rate rental unit for every 2 market-rate units converted. Applies: Required to apply when there is no vacancy surplus; tenants of at least two-thirds of units must also consent. § 21.40.050 · code text One below-market-rate rental unit must be provided for every two non-below-market-rate units to be converted.
Tenant approval	Tenants of at least two-thirds of the rental units must consent. Applies: Applies to applications filed with no vacancy surplus; one consent per unit, signed by all its tenants. § 21.40.050 · code text The tenants of at least two-thirds of the rental units in the rental housing complex consent to convert the rental housing complex to a community housing project in accordance with the following provisions: Consent forms must be signed within 90 days of first going to tenants. § 21.40.050 · code text The city must be notified on the date consent forms are first given to tenants, and the consent forms must be signed no later than ninety days from the date the consent forms are first given to the tenants;
Notice to tenants	New tenants must get written notice of the proposed conversion before any rent or deposit is accepted. Applies: Applies to units rented after consent forms first go to tenants. § 21.40.050 · code text No rental unit in a rental housing complex shall be leased or rented to any person after the consent forms are first given to tenants unless said person has been notified of the proposed conversion immediately prior to the acceptance of any rent or deposit from the prospective tenant in the following written form:
Vacancy-rate test	An application needs a vacancy surplus in the city's latest finding; conversions may exceed it by at most 40%. Applies: Unless the below-market-rate unit and two-thirds tenant consent conditions are met. § 21.40.050 · code text No application for consideration of a tentative or preliminary parcel map for a subdivision to be created from a conversion may be filed with the city unless there is a vacancy surplus as of the most recent determination pursuant to this chapter.

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

TenantsLandlordsProperty managers

Frequently asked questions

How much notice does a Palo Alto landlord have to give?

State law: 60 days' notice to end a tenancy, or 30 days if the tenant has lived there less than 1 year. City rule: every lease must include a notice of the right to mediation, which must be requested within 21 days of learning the facts.

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

Palo Alto's code: 1½ months’ rent. (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). State law: One month's rent, on top of the first month's rent (Civ. Code § 1950.5(c)(1), (c)(6)).

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

Palo Alto's code: 15.5% of the rent. (§ 2.33.020); The operator collects the tax from each guest at the same time as the rent. (§ 2.33.040).

What happens to tenants when a Palo Alto building converts to condos?

Palo Alto's code: 1 below-market-rate rental unit for every 2 market-rate units converted. (Required to apply when there is no vacancy surplus; tenants of at least two-thirds of units must also consent.) (§ 21.40.050); Tenants of at least two-thirds of the rental units must consent. (Applies to applications filed with no vacancy surplus; one consent per unit, signed by all its tenants.) (§ 21.40.050).

General information, not legal advice.

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