Renter Protections: Learn about existing and expanded protections, plus other changes under consideration

Over 40% of the City’s residents are renters. The City Council continues to support programs and resources for tenants and landlords in our community. Recently, renter protections were expanded. This community update shares more about the City’s existing protections and requirements, what’s new and other protections under consideration later this summer.

This article was updated on August 23, 2023 in accordance with recent Council actions.

What’s New >Expanded Renter Eviction Protections

Palo Alto renter policies were recently updated to include a lower security deposit limit for unfurnished rental units and expanded just cause eviction protections.

LOWER: Security deposit limit for unfurnished rental units

The City Council lowered the security deposit limit for unfurnished rental units in Palo Alto to one and a half times (1.5x) the monthly rent. This helps reduce the total move-in costs for a renter and goes beyond the State security deposit limit (which sets the limit at 2x the monthly rent). This new security deposit limit went into effect on July 20, 2023, and applies to all new tenancies for unfurnished rental units in Palo Alto.

EXPANDED: Just cause eviction protections for renters

The City Council also recently approved extending just cause eviction protections to more renters in our community than currently covered under State law. Additionally, while State eviction protections end in 2030, City Council made its protections permanent. For renters covered by the new ordinance, effective as of July 20, 2023, landlords are required to:

• Evict only for “just cause,” which could be either “at fault” (e.g., not complying with rental agreement) or “no fault” (i.e., justifiable reason not within renter’s control),
• Give renters notice of their right to just cause evictions in the future,
• State the specific just cause reason for an eviction in a termination notice sent to a renter,
• Provide renters with the opportunity to address (if “curable”) a lease violation prior to issuing a termination notice, and
• Provide financial relocation assistance or a rent waiver to renters in cases of a “no fault” just cause termination.

Due to negotiations at the state level, the state law protections do not extend to all rental circumstances. However, the City extends its protections to more renters, specifically those renting units that received a certificate of occupancy within the past 15 years.

REDUCED: Minimum lease term to qualify for protections to 6 months

The City Council reduced the minimum lease term required to qualify for protections from 1 year (the State requirement) to 6 months at their August 21, 2023 City Council meeting. This change goes into effect on September 21, 2023.

Find Council agendas and minutes here.

Renter Protections > Existing Long-Standing Requirements

Palo Alto also has additional, long-standing rental requirements including requiring landlords to offer one-year leases and to provide financial relocation assistance for no fault evictions on properties with 10 units or more.

One Year Lease Requirement: Palo Alto requires all landlords to offer their tenant or prospective tenant a lease with a minimum term of one year. If a tenant would prefer to have a rental agreement of less than one year, they must first reject the one-year lease before they are offered a short-term lease.

Mandatory Response Program: Palo Alto Mandatory Response Program requires a response to a request for discussion in many types of disputes involving rental housing properties. A tenant, owner, or property manager can start the process, at no cost to any party, by filing a petition form with the Palo Alto Mediation Program.

The City’s requirements apply to residential rental property with two or more dwelling units, except two-unit residential rental property in which one of the units is owner-occupied or any residential rental property that is owned by a person or legal entity that owns two or more residential rental properties within the City.

Tenant Relocation Assistance Requirement: The City requires tenant relocation assistance payment when a renter experiences a no-fault eviction on a property containing 10 or more rental units. Common reasons for no-fault evictions include demolition or permanent removal of rental units from rental market, significant renovations to the building making the unit uninhabitable, and landlord occupancy.

The amount of Tenant Relocation Assistance for no fault evictions is adjusted July 1 of each year. Amounts also range by the number of bedrooms in a rental unit. An additional amount is applicable if a rental unit is occupied by a low-income household, someone who is 60 years of age or older, someone who is disabled, and/or someone that is a minor.

Additional Resources > Online Information & Programs to Help

Click to view City Online Resources for Landlords and Tenants

Click to learn about other housing related topics and issues

Learn more about other assistance:

Project Sentinel: Project Sentinel assists individuals with housing problems such as discrimination, mortgage foreclosure & delinquency, rental issues including repairs, deposits, privacy, dispute resolution, home buyer education, post purchase education and reverse mortgages. Contact (888) 324–7468.

Palo Alto Mediation Program: Palo Alto Mediation Program offers free conciliation and mediation services to help resolve a variety of disputes to anyone who lives, works, or does business, or owns property in Palo Alto. Contact (650) 856–4062 or email pamediation@housing.org.