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Roughly 45 percent of Palo Alto homes are rented, so tenant law touches a large part of the city. Two layers apply. California's Tenant Protection Act of 2019, usually called AB 1482, sets a statewide rent cap and just cause eviction rules for many older rentals. Palo Alto adds its own ordinances on top, covering lease terms, deposits, eviction timing and relocation payments. Knowing both layers helps tenants spot a problem early and helps small landlords stay out of trouble.
This page explains the rules as the state and city publish them. It is general information, not legal advice. Tenant law is detailed and changes often, so check the official sources linked here and talk to a lawyer or a free legal aid group about your own situation. For day-to-day renting, from the market to move-in checklists, see our guide to renting in Palo Alto.
The state rent cap
AB 1482 took effect on January 1, 2020 and is scheduled to end on January 1, 2030. Its rent cap, in Civil Code section 1947.12, works like this:
- A landlord may raise rent by no more than 5 percent plus the percentage change in the cost of living, measured by the applicable consumer price index, over any 12-month period.
- The total increase can never exceed 10 percent in 12 months, whatever inflation does.
- Increases are measured from the lowest rent charged in the prior 12 months.
- A landlord may raise rent no more than twice in 12 months. The total still has to fit under the cap.
The inflation figure changes each year and depends on which index applies to the area. Ask the landlord to show the calculation, or check the state's published index before agreeing to an increase. Notice rules also apply: an increase of more than 10 percent requires 90 days' notice under California law, which in practice applies to units exempt from the cap.
Common exemptions
Not every rental is covered. Exemptions include:
- Housing that received its certificate of occupancy within the past 15 years, a rolling window
- Single-family homes and condos owned by individuals rather than corporations or REITs, if the tenant received the required written exemption notice
- A duplex where the owner lives in one of the two units
- Deed-restricted affordable housing, such as many of the city's below market rate units
- Dormitories and some other special housing
Accessory dwelling units add a wrinkle. Many backyard cottages are new enough to be exempt under the 15-year rule. Our guide to ADUs and SB 9 covers the city's ADU rules, including the 30-day minimum rental term.
Just cause eviction under state law
Under Civil Code section 1946.2, once a tenant has lived in a covered unit for 12 months, the landlord needs a just cause to end the tenancy. The causes fall into two groups.
| Type | Examples | Relocation help |
|---|---|---|
| At-fault | Unpaid rent, a serious lease breach, nuisance, criminal activity on the property, refusing lawful entry | None required by state law |
| No-fault | Owner or close family moving in, taking the unit off the rental market, demolition or substantial remodel, a government order | One month's rent, paid or waived as the final month |
A 2023 state law, SB 567, tightened the owner move-in and substantial remodel causes starting April 1, 2024 and added penalties for misuse. Retaliation is a separate protection: California law bars landlords from raising rent, cutting services or evicting because a tenant complained about conditions or used other legal rights.
What Palo Alto adds
The city's tenant resources page summarizes the local rules. In brief:
| Rule | What the city says |
|---|---|
| One-year lease offer | Landlords must offer a written lease of at least one year; a shorter term is allowed only after the tenant turns that down |
| Just cause qualifying period | Six months instead of the state's 12, since September 21, 2023 |
| Wider coverage | Just cause protections extended to more renters than state law covers |
| Permanent local rules | City protections made permanent, while the state law ends in 2030 |
| Security deposits | No more than 1.5 times monthly rent for unfurnished units |
| Relocation assistance | Required for eligible no-fault evictions; amounts depend on building size and are updated each July 1 |
| Mandatory discussion | Landlords and tenants must respond to requests to discuss many kinds of disputes and take part in mediation |
| Rental Registry | Owners of properties with three or more units register each year |
Our renting guide lists the 2026 to 2027 relocation amounts and the Rental Registry deadline of January 19, 2027.
Deposits: state and city limits together
Palo Alto adopted its deposit limit in 2023, when state law allowed up to two months' rent for unfurnished units. A state law that took effect on July 1, 2024 lowered the state cap to one month's rent for most landlords. Some small landlords who are individuals may still collect up to two months. When the city and state limits differ, the stricter one controls. For most Palo Alto rentals, that means one month.
Debates still open
Palo Alto has studied further renter protections for years. According to the city's renter protection policy page:
- Rent stabilization. On June 1, 2026 the City Council deferred a draft rent stabilization ordinance. The page describes a one-year deferral with staff returning to the Policy and Services Committee, while the agenda title used the word "indefinitely." Watch the council's agendas for the next step.
- Registry expansion. The council also deferred adding properties with two or fewer units to the Rental Registry.
- Fair Chance in Housing. A proposed ordinance would limit how landlords use criminal history in rental decisions. The Policy and Services Committee reviewed a revised draft on June 9, 2026 and asked staff to return with a recommendation to the council. We could not confirm final adoption.
Our guide to attending city council explains how to follow and comment on these items. The broader push for new housing is covered on our Housing Element page.
For small landlords
Many Palo Alto landlords rent out a single house, a condo or a backyard cottage. A few habits avoid most disputes:
- Decide whether the unit is exempt from the state cap and, if it is a house or condo owned by an individual, give the written exemption notice the law requires.
- Offer the one-year lease in writing and keep the tenant's response.
- Keep deposits within the stricter of the state and city limits.
- Photograph the unit at move-in and move-out, which state law now expects for deposit disputes.
- Before any no-fault termination, check both the state rules and the city's relocation sheet. Ask a landlord-tenant attorney.
- Older apartment buildings with parking under units may face seismic questions. See our earthquake retrofit guide.
Where to get help
- Palo Alto Mediation Program. Free mediation for people who live, work or own property in Palo Alto. Call (650) 856-4062 or email pamediation@housing.org.
- Project Sentinel. Help with repairs, deposits, privacy and fair housing complaints, listed on the city's tenant page.
- Palo Alto Tenant Guide. The city's booklet of common questions, in English, Spanish and Chinese.
- Unsafe conditions. Report them to code enforcement through the city's 311 system. See reporting problems.
- Legal advice. Nonprofit legal aid groups in Santa Clara County advise tenants facing eviction. Our free legal help page lists options. The Santa Clara County Superior Court's self-help center explains eviction forms and deadlines.
- Discrimination. Complaints can go to the California Civil Rights Department. Our history of the fair housing fight explains how Palo Alto got here.
Good to know
- Eviction papers from a court have short deadlines. Get help the day they arrive.
- Keep copies of your lease, every notice, rent receipts and photos.
- Put repair requests in writing and keep the date.
- City rules apply in addition to state law, not instead of it.
Frequently asked questions
Does Palo Alto have rent control?
Palo Alto has no local rent control. Many older units are covered by California's statewide rent cap under AB 1482, which limits yearly increases to 5 percent plus local inflation with a ceiling of 10 percent. In June 2026 the City Council put off a local rent stabilization ordinance. The city's page describes that as a one-year deferral.
Which rentals are exempt from the state rent cap?
Common exemptions include housing built in the last 15 years, single-family homes and condos owned by individuals who give tenants the required written notice and duplexes where the owner lives in one unit. Deed-restricted affordable housing is also exempt. The rules are detailed, so check the statute or ask a tenant or landlord attorney.
How long must I rent before just cause protections apply in Palo Alto?
State law protects most tenants after 12 months. Palo Alto shortened that qualifying period to six months for tenancies covered by its ordinance, starting September 21, 2023. The city also made its own protections permanent, while the state law is set to end on January 1, 2030.
How much can a landlord charge for a security deposit in Palo Alto?
State law since July 1, 2024 caps deposits at one month's rent for most landlords, with an exception allowing two months for some small landlords who are individuals. Palo Alto's own cap is one and a half times rent for unfurnished units. Where both apply, the stricter limit controls, so many Palo Alto renters will pay no more than one month.
Where can Palo Alto renters get free help?
The Palo Alto Mediation Program offers free mediation at (650) 856-4062 to people who live, work or own property in the city. Project Sentinel helps with repairs, deposits and fair housing complaints. Local legal aid groups advise on evictions. The court's self-help center explains eviction paperwork.