Despite opposition from the California Apartment Association and local property owners, the Palo Alto City Council voted this week to implement a mandatory rental registry.

The ordinance, approved on a 6-1 vote Monday, Nov. 27, will require landlords to pay approximately $40 annually for each rental unit they own. Additionally, property owners will need to complete an invasive questionnaire that discloses rent prices, and specifics on the rental units — creating serious privacy risks, CAA contended. The data collected could become public through records requests or potential data breaches.

Not only does the rental registry threaten privacy, CAA contended, but refusing to participate is not an option. Non-compliance fines will be $100 per day for each unregistered unit.

The City Council intends to use the collected data to shape future landlord-tenant policies. CAA and other critics called the move an unwarranted invasion of privacy that imposes unjustified financial burdens on housing providers. They argue this will only discourage investment in rental housing and exacerbate the city’s housing challenges.

The city plans to implement the registry over time, initially focusing on landlords with three or more units. Eventually, it will encompass those renting out single-family homes, duplexes, and granny units.