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CITY OF PALO ALTO
TENANT GUIDE
(Updated January 2015)

TO THE MOST FREQUENTLY ASKED
QUESTIONS ABOUT RENTAL HOUSING

Published by:

Office of Human Services
Community Services Department
City of Palo Alto

Updated 5/2015

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 Office of Human Services
The City of Palo Alto’s Office of Human Services is pleased to provide this guide.

CONTENTS
PALO ALTO’S MEDIATION ORDINANCE......................................................................................................3
TENANT-LANDLORD COUNSELING ...............................................................................................................4
RENTAL APPLICATIONS......................................................................................................................................4
LEASE/RENTAL AGREEMENTS ........................................................................................................................4
DEPOSITS ....................................................................................................................................................................6
RENT INCREASES ....................................................................................................................................................8
PRIVACY ......................................................................................................................................................................9
UPKEEP AND REPAIR RESPONSIBILITIES.................................................................................................9
TENANCY TERMINATION AND EVICTION .............................................................................................. 10
DISCRIMINATION ................................................................................................................................................ 14
WHERE TO CALL FOR INFORMATION AND HELP .............................................................................. 16

Remember, you may try to resolve
any housing dispute by using the
landlord-tenant mediation process.
For more information about this free program,
call the Palo Alto Mediation Program at 650856-4062

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 PALO ALTO’S MEDIATION ORDINANCE
Are landlords and tenants required to mediate their
disputes?
Our experience is that most landlords and tenants welcome the help the mediation program
provides and do not need to be compelled to mediation. Even so, many of the disputes
described in this booklet are subject to Chapter 9.72 of the Palo Alto Municipal Code, titled
“Mandatory Response to Request for Discussion of Disputes between Landlords and
Tenants.” Issues such as rent increases, repairs and maintenance and deposits are covered,
if the landlord owns two or more rental units in Palo Alto. The ordinance requires the
parties to engage in conciliation or mediation when one of the parties makes a formal
request using the MRP request form. The ordinance requires covered landlords to
participate, but does not require any specific outcome. Any resulting resolution remains the
voluntary choice of the parties. For more information, contact the Palo Alto Mediation
Program at: 650-856-4062. Information and forms for requesting mediation are also
available at www.paloaltomediation.orgPALO ALTO’S ORDINANCE REGARDING

LEASES
Does the Palo Alto Rental Housing Ordinance require a oneyear lease?
The City of Palo Alto has a rental housing stabilization ordinance, Chapter 9.68 of the Palo
Alto Municipal Code, which requires landlords to offer tenants in most multiple family
dwellings a written one-year lease that spells out the rent requirements over the year. The
lease offer may be rejected by the tenant, but only in writing. If both the landlord and
tenant wish to continue their rental relationship after the one-year lease expires, the
landlord must offer another one-year lease agreement annually.

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 TENANT-LANDLORD COUNSELING
The City of Palo Alto has contracted with Project Sentinel to counsel both tenants and
landlords about their rights and responsibilities, and to explain how they can help the
relationship work smoothly. This guide covers many topics briefly. If you do not find an
answer here, please call (650) 856-4062.

RENTAL APPLICATIONS
Can I be charged a fee for a rental application?
The landlord has the right to charge a credit check fee up to $30 per person, and other outof-pocket costs. However, the landlord may not charge a fee simply for filling out an
application. If your application is denied because of the credit report, you have a right to a
copy of the report.

LEASE/RENTAL AGREEMENTS
Is an oral agreement with my landlord binding?
Palo Alto’s rental housing stabilization ordinance requires the landlord to offer a written
lease. Oral agreements can also be legal and binding, but oral agreements are often difficult
to enforce because they rely on the memory and goodwill of both parties. You should get
your rental agreement in writing.

What should I know about signing a rental agreement?
When a written agreement is presented to you, you should read it carefully before you sign
it, and ask for explanations of any clauses you don’t understand. Make changes to any items
you wish to alter or delete, and write in any additional items you have verbally agreed upon
with your landlord. Be sure you are given a copy of the written agreement and that you
keep it for reference in the future. Under California law, your landlord must provide a copy
of the written rental agreement to you no later than 15 days after you sign it.

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 Can a Landlord Charge for Utilities and How are Utilities
Handled When There are Multiple Rental Units on the Same
Property?
Landlords can charge separately for utility costs to rental units as long as the financial
responsibility for paying the utilities is spelled out in the rental agreement. If there is a
separate meter for each unit, a tenant can be required to open a separate utility account.
When tenants in separate units share the same meter, California Civil Code section 1940.9
requires landlords with shared utilities to disclose the existence of this arrangement to all
prospective tenants before they begin their tenancy. The landlord can decide how
to apportion the combined billing among the separate rental units, but the apportionment
must be based on some fair formula such as total square footage or total number of rooms.
Additionally, the City of Palo Alto Utilities (CPAU) does not allow the landlord to add fees of
their own to utility charges he receives from CPAU.

Do I have the right to sublease my apartment?
Some lease agreements expressly prohibit subleases. Others may require your landlord’s
permission before you sublease. Even if your lease does not prohibit or limit subleasing, it’s
wise to discuss your plans with your landlord in advance.

How are my rights affected by foreclosure?
The fact that a rental property is in a foreclosure process does not change the applicable
rights and responsibilities between a tenant and a landlord until the last stage of the
foreclosure process known as the “Trustee Sale”.

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 Until the trustee sale, a tenant must continue to pay rent to the current owner-landlord,
who continues to have the legal obligation to repair and maintain the rental property. Once
there has been a trustee sale, either the lender or new owner becomes your new landlord
and your tenant relationship is transferred to that new landlord. After the trustee sale you
should pay rent to the new owner, who is obligated to give you notice of their name, contact
information and place to pay rent.
If either the old or new landlord fails to maintain the utilities, there is a procedure that
allows the tenant to establish a direct account with the utility provider and to deduct the
utility payments from the rent due.
Foreclosure does not end tenants’ rights to continue to live in the rental property. The
applicable rights are described below under “Does a foreclosure terminate my tenancy?”

DEPOSITS
If I give a landlord a deposit to hold an apartment and I
change my mind, can I get my money back?

The purpose of a holding deposit is to require the landlord to take the rental unit off the
market and to compensate the landlord for the resulting loss if you change your mind. You
should read a holding deposit agreement very carefully before signing, because many of
these agreements claim the holding deposit non-refundable. A blanket non-refundable
deposit is void, but the landlord can subtract actual losses such as lost rent, additional
advertising, etc. The amount of a refund will depend on the terms of the agreement with the
replacement tenant. If you are unable to occupy the rental because the landlord does
not have the unit available, for example if repairs are not finished, your holding
deposit cannot be charged for the lost rent.

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 What is the maximum security deposit I can be charged?
When can I get it back?
The law allows a landlord to collect a security deposit in an amount up to and including 2
months’ rent for an unfurnished unit, and 3 months’ rent for a furnished unit. This limit
applies regardless of the type of deposit, including pet deposits. Within 3 weeks after you
move out, the landlord must either send you a full refund of the deposit, or an itemized
statement that lists reasons for and amounts of any deductions, plus the remaining refund.
For amounts withheld that exceed $125 for cleaning or damage, the landlord must also
attach receipts documenting such costs incurred, unless you waive this requirement in
writing. If a particular repair could not be completed within 21 days, the landlord must
attach the repair estimate. The deposit may be used to pay the last month’s rent only if the
rental agreement specifically permits that use. A landlord is not required to pay interest on
a deposit. Be sure to get a receipt for your deposit, which states the purpose of the deposit,
e.g. security or last month’s rent.

Do I have a right to a walk-through inspection with my
landlord when I move out?
Once either party has given notice that the tenancy will be terminated, the landlord must
give you notice of your right to a walk-through inspection with the landlord at least two
weeks prior to the date of termination. After that inspection, you are entitled to a list of
deficiencies that you must remedy in order to preserve your deposit. The landlord cannot
add to that list after the walk-through, unless you have caused new damage after the walkthrough, or the damage was hidden from plain sight, prior to the final move-out.

Do I get my deposit back if there is only normal wear and
tear?
Deterioration or loss of property in the unit due to “Normal wear and tear” is not
deductible. The normal wear and tear exception applies to items with a limited useful life
such as carpet or paint. If that item has exceeded its useful life, you cannot be charged for
its replacement even if it is worn out. If the item must be replaced before its normal useful
life, you are still entitled to a credit for the expended useful life against the full replacement
cost. For example, if you live in a rental for three years that has a five-year carpet needing
replacement, you should receive a credit for 3/5 of the total cost. Wear and tear does not
apply to damage such as holes in a wall or a broken window.

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 What else can be deducted from my deposit?
You must restore the rental to the same level of cleanliness that existed at the time of your
move-in. If you fail to do so, your deposit can be charged a cleaning fee. If your rental
agreement calls for “professional carpet cleaning” you will be required to pay for it. Any
unpaid rent or utility bills can also be deducted from your deposit.

How does foreclosure or sale of the property affect my
deposit?
If a rental property changes ownership as a result of foreclosure, or any other reason, the
prior owner must either refund the deposit to you, or transfer it to the new owner. If the
deposit is refunded, the new owner can demand a new security deposit from you. If the
prior owner does not transfer or refund the deposit, both the prior owner and the new
owner are legally liable to you for the deposit accounting as well as any refund due to you
when you vacate.

RENT INCREASES
How much notice of a rent increase does the landlord have
to give?
If you have waived your right to a one-year lease, and decided to rent on a month-to-month
basis instead, you are entitled to a 30-day written notice of a rent increase, unless the
increase or total increases in the same year exceed 10%. In that case, you must be given a
60-day written notice. If you have a lease, the rent cannot be raised during the term of the
lease, but when the lease expires the new rental rate is solely a matter of negotiation
between tenant and landlord. There is no requirement that the landlord give a written
notice of an increase in advance of the termination of the current lease.

Is there rent control in Palo Alto?
No. There is no limit to the amount of a rent increase or the frequency of rent increases if
you are on a month-to-month rental agreement. However, a tenant may request mediation
through the Palo Alto Mediation Program to provide an opportunity to discuss mitigation of
the proposed rent increase.

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 PRIVACY
Does the landlord have a right to come into my apartment?
The law requires the landlord to give you at least 24 hours written notice before entering
your unit except in an emergency or if you have abandoned the property. With proper
written notice, the landlord may enter your unit, but only during normal business hours and
only for certain limited purposes such as making repairs, or showing the unit to prospective
tenants or buyers. If the landlord meets all of these requirements, you cannot refuse entry,
nor can you insist that entry only occur when it is convenient for you to be present. Unless
your rental is subject to a government subsidy program, a landlord does not have a right to
enter for the purpose of conducting an inspection.

UPKEEP AND REPAIR RESPONSIBILITIES
What is the extent of a landlord’s duty to provide adequate
conditions in the unit I am renting?
The landlord is responsible for providing a safe and habitable unit. This means the walls
and roof must not leak, there should be no broken doors or windows, there must be
deadbolt locks on all outside doors, and the plumbing, gas, heater, wiring and lights must
work. The floors, railings and stairways must be safe. The landlord must provide sufficient
covered trash cans and pest control. The unit must also comply with all local building code
regulations. The landlord is not obligated by law to provide “amenities” such as a clean
carpet, specific appliances, or fresh paint. However, the tenant may try to negotiate for
those items in a rental agreement. If the amenity items are included in the rental
agreement, they must be provided as part of your contractual rights.

Who is responsible for repairs?
The landlord is responsible for the proper maintenance of the items necessary to provide
habitability. The tenant is responsible for damage that results from neglect or abuse. The
rental agreement may also identify certain responsibilities for each party, but the
agreement cannot require the tenant to be responsible for habitability maintenance.

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 Am I supposed to report needed repairs? How much time
does the landlord have to make the repairs?
Yes, you should report needed repairs. Unless the need to repair is obvious, a landlord is
not required to act until proper notice has been given. It’s best to notify the landlord with a
telephone call and in writing. In general, the landlord should complete repairs, which are
not urgent within 30 days. Urgent repairs must be done as soon as possible. If
communication breaks down with the landlord, consider using the Palo Alto Mediation
Program (www.paloaltomediation.org)

TENANCY TERMINATION AND EVICTION
What is the difference?
Eviction is a legal process for removing a tenant who has violated the rental agreement or
has not complied with a notice ending the tenancy. The most common reasons for eviction
are:
Not paying rent
Materially damaging the rental property
Interfering with other tenants
Using the rental unit for an illegal purpose
Violating the rental agreement
Tenancy termination occurs when you or your landlord decide not to renew your rental
agreement. There is no requirement of cause to terminate a tenancy.

What is a 3-day notice? How shall I respond?
A landlord may give you a 3-day notice when you have failed to pay rent on time or violated
an important part of the rental agreement. When you receive such a notice you have the
following options:

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 If the notice demands payment, you must pay the entire amount no later than the third day.
If the notice states that you have violated a term of the lease, stop violating the agreement
within the 3-day period and let your landlord know in writing that you have stopped. Once
you comply with the demands of the notice with the specified three days, the landlord
cannot use this 3-day notice as the basis for an eviction, unless you have been served with
an unconditional 3-day notice for violations that can’t be corrected, such as engaging in
criminal activity.
Negotiate with the landlord to request additional time to either pay the amount owed or to
comply with the lease terms. Make sure the agreement you make with the landlord to allow
additional time is in writing to assure clarity of the terms.
Seek mediation services or legal assistance especially if you believe the notice contains
errors.

What are the various types of tenancy termination notices
and what are the options for responding?

If you have a month-to-month agreement, you can terminate your tenancy by giving the
landlord a 30-day written notice of termination. Your landlord can terminate a month-tomonth agreement on 30 days written notice, if you have lived there less than one year. If
you have lived there longer, the landlord must give you 60 days written notice. If you are
renting pursuant to a Section 8 HUD voucher, you are entitled to 90 days’ notice. Proof of
“cause” or a reason for the termination is not required. If you have a lease, neither you nor
the landlord can terminate the tenancy prior to the expiration date of the lease, unless the
other party has violated a provision in the lease. However, victims of domestic violence and
members of the armed forces can terminate a lease before its term ends, under certain
specific conditions. Termination notices must be in writing. Verbal notices and email notices
are invalid and unenforceable.

If you receive a written notice of termination from your landlord, you have the following
options:

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 Vacate the premises within the 30, 60 or 90 day notice period, to avoid being sued in
eviction court and to preserve a good credit record.
Negotiate with your landlord to request additional time to vacate the premises or to
preserve your tenancy. It is important that any agreement you make with the landlord be in
writing to preserve clarity of the terms.
Seek mediation services or legal assistance especially if you believe the notice was issued
because you requested repairs or otherwise exercised your legal rights.

Can the landlord change the locks or call the police if I
remain in the rental unit after a termination notice or lease
has expired?
No. In order to legally evict you, the landlord’s only option at the expiration of the 3-day or
30, 60 or 90 day notice is to file and serve an eviction suit in the Superior Court and obtain a
judgment against you from the court. The landlord has the right to serve you with court
papers called a “Summons” and “Unlawful Detainer Complaint.” If you do not respond to the
complaint by filing a document known as an “Answer” with the court, the landlord can get
possession of your apartment within a few days. If you do file an Answer with the court, the
court will schedule a trial date on the matter. You generally have only 5 days from the day of
receiving the Summons and Complaint to file an Answer with the court. Seek legal
assistance, or contact the Self Help Center, if you receive a Summons and Complaint and
need help with filing an Answer.

What can I do if the Sheriff posts an eviction notice on my
door?

If you have not filed an Answer with the court in response to the Unlawful Detainer
Complaint, or you have lost at trial after defending against the eviction, the Sheriff may post
a 5 day Eviction Notice on your door. You then have the right to ask the court for additional
time (up to 40 days) to find substitute housing if vacating immediately would present a
hardship for you. To request additional time, you must file an application with the court for
a “Stay of Execution.” If the court grants your application, you will be required to deposit
the daily amount of the rent due for your unit for each day of additional time that you
request. For assistance with the application form and additional information regarding a
Stay of Execution contact the Court’s Self Service Center.
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 What if I think the landlord is terminating my tenancy
because I complained about a problem?

Terminating your tenancy because you exercised your rights, such as complaining about
discrimination or contacting an agency to inspect the unit, is known as a retaliatory eviction
and it is illegal. You should seek help from the Fair Housing Center or from legal services if
you think this is happening. Mediation may also be an option.

Does a foreclosure terminate my tenancy?
A new owner takes control of a rental property after the last stage of the foreclosure
process, known as the “trustee sale”. If you are a genuine “bona fide” tenant, federal and
state laws provide some protection after the new owner takes legal control. To be a bona
fide tenant, you must have an arms-length written rental agreement and cannot be a
member of the prior property owner’s immediate family. If you are a bona fide month-tomonth tenant, you must be given a 90-day written notice to terminate your tenancy. If you
have a lease, you must be allowed to complete the lease term, unless the new owner intends
to personally occupy the rental, in which case you are still entitled to 90-days’ notice. If you
don’t qualify as a bona fide tenant, but you are a non-owner living lawfully in the house or
apartment, you are entitled to a 60-day notice. You are only entitled to these added time
periods if you continue to pay your rent and otherwise comply with your tenant obligations
under the rental agreement.

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 DISCRIMINATION
What is discrimination?
Federal and state laws prohibit discrimination in housing. Discrimination is the differential
treatment of people based on their race, color, religion, sex, marital status, sexual
orientation, gender identity, national origin, physical or mental disability, age, the presence
of children in a family (including pregnancy), source of income, or any other arbitrary basis.
We refer to these as Protected Categories. Discrimination based on these Protected
Categories is prohibited in the application process, in the terms and conditions of tenancy,
in the use of facilities and services and in the termination of a tenancy. If you feel you are a
victim of discrimination, call Project Sentinel’s Fair Housing Center at 650-321-6291.

Can a landlord refuse to rent to me for any reason
whatsoever?
No. State and Federal law makes it unlawful to refuse to rent or lease a housing
accommodation, refuse to negotiate for the rental or lease of a housing accommodation, or
otherwise deny to or withhold a housing accommodation from any person or persons,
based on the Protected Categories listed above. The Palo Alto Municipal code (chpt. 9.74)
also prohibits denying tenancy on the basis of parenthood and the possible presence of a
minor child in the household.

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 It is also unlawful to discriminate against any person by establishing different terms,
conditions or privileges to a tenant based on these Protected Categories. Reasonable
restrictions on the use of common areas, facilities, and services that are necessary to protect
health and safety, and which apply to all residents, are permissible. For example, a rule that
prohibits the use of a parking lot for any activities other than going to and from one’s
vehicle is permissible, as it applies to all residents and is reasonable given the dangerous
nature of a parking lot. A rule that prohibits children from playing in a property’s common
areas would not be reasonable, as it targets children and children can safely play in those
spaces.

Do disabled applicants and tenants have any special
protections?
Landlords cannot discriminate against a tenant with a disability. In addition, landlords
must “reasonably accommodate” a tenant’s disability to allow that tenant the opportunity to
fully utilize the rental property. For example, a landlord may be required to waive a no-pets
rule so that a disabled tenant can benefit from a service or companion animal. A disabled
tenant may also request a reasonable modification, which means a physical change in the
rental premises, for example installing a wheelchair ramp. Unless the property receives
federal financial assistance, such as a low-income property, a landlord is not required to
bear the cost of a modification, which must be paid by the tenant or by one of the funds that
assist disabled tenants. For more help with disability issues, call the Fair Housing Center at
650-321-6291.

Can a landlord limit the number of people who
occupy a unit?
Yes, but occupancy limits must be reasonable and fair. Any limitation more restrictive than
two people per bedroom plus one person may be questionable. For an explanation of
occupancy issues, call The Fair Housing Center at 650-321-6291.

Can the landlord require that I make a certain income in
order to rent?
Yes, but the amount must be reasonable and fair, often equal to 2 or 3 times the amount of
the rent based on the gross combined income of all adults in the household. However, the
landlord cannot distinguish between the sources of income, for example disability benefits
versus wages, as long as the income is sufficient. One thing to note is that landlords are not
required to accept a Section 8 voucher. Vouchers and other assistance payments are not
considered tenant income. For more information about income requirements, call The Fair
Housing Center at 650-321-6291.
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 WHERE TO CALL FOR INFORMATION AND HELP

Tenant-Landlord Questions
Project Sentinel
www.housing.org

650-856-4062

Dispute Resolution/Mediation
Palo Alto Mediation Program
www.housing.org

650-856-4062

Discrimination Counseling and Investigation
Cal State Dept. of Fair Employment & Housing
www.dfeh.ca.gov

Project Sentinel Fair Housing
www.housing.org/fair-housing

1-800-884-1684

650-321-6291

City of Palo Alto
City Attorney
650-329-2171
www.cityofpaloalto.org/gov/depts/aty/default.asp
Code Enforcement
650-329-2358
www.cityofpaloalto.org/gov/depts/pln/code.asp
Planning Department
650-329-2496
www.cityofpaloalto.org/gov/depts/pln/default.asp

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 Police Department
www.papd.org

650-329-2413

Office of Human Services
650-463-4906
www.cityofpaloalto.org/gov/depts/csd/hs/default.asp
Animal Services
www.papd.org/animal/index.html

650-496-5971

Emergency Rental Assistance

InnVision Shelter Network
http://www.ivsn.org/services/family-services/opportunity-services-center/

Neighbors Helping Neighbors

650-283-0270

NHN.FamilyAmbassador@gmail.com

Landlord Assistance
Tri-County Apartment Association
www.tcaa.org

408-342-3500

Legal Assistance
Bay Area Legal Aid (Low Income)
www.baylegal.org

408-850-7066

Palo Alto Area Lawyer Referral Service
www.paaba.org

650-326-8322

Santa Clara County Lawyer Referral Service
www.sccba.com

408-971-6822

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 Santa Clara Superior Court “Self-Service” Center
www.scscourt.org/self_help.shtml/

408-882-2900
ext. 2926

California State Courts’ self-help website:
www.courts.ca.gov/selfhelp

Small Claims Court- Santa Clara County

408-882-2100

www.scscourt.org/self_help/small_claims/small_claims_advisor.shtml

Special Needs
Asian Law Alliance
wwwasianlawalliance.org/

408-287-9710

Mental Health Advocacy Project
http://www.lawfoundation.org/mhap.asp

408-294-9730

Senior Adult Legal Association
www.sala.org/index.html

408-295-5991

Avenidas - Senior Needs and Programs
www.avenidas.org

650-289-5400

Mortgage Default and Delinquency Counseling
Project Sentinel
www.housing.org/mortgage-counseling/

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888-331-3332

 Subsidized and Affordable Housing Information
City of Palo Alto Office of Human Services

650-463-4906

Below Market Rate Rental Housing- Santa Clara County
www.housingSCC.org

Other Services Available in Santa Clara County
City of Palo Alto Information & Referral - Family Resources
www.city.palo-alto.ca.us/familyresources
650-463-4906
Information and Referral for Santa Clara County
www.211scc.org/about/
NHN Housing Network
650-283-0270
NHN.FamilyAmbassador@gmail.com
For information please look at
https://facebook.com/NeighborsHelpingNeighborsPaloAlto

Useful Rental Housing Publications
CA Department of Consumer Affairs
800-952-5210
www.dca.ca.gov/publications/landlordbook/catenant.pdf
Renter’s Rights and Every Tenant’s Legal Guide, published by Nolo Press
http://www.nolo.com/legal-encyclopedia/renters-rights

The California Landlords’ Law Book: Rights & Responsibilities,
published by Nolo Press
http://www.nolo.com/legal-encyclopedia/landlords

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 The Office of Human Services appreciates the contributions to this guide made by:
Martin Eichner of the Palo Alto Mediation Program
Paul Hebert of Project Sentinel
Stephanie Rabiner of Project Sentinel Fair Housing
Human Relations Commission
City Attorney’s Office

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