Is It Legal for My Landlord to Keep Raising Rent in Laguna Niguel?

Question from Liza, Is It Legal for My Landlord to Keep Raising Rent in Laguna Niguel?

Answer from AI:

How California Limits Rent Increases

California law allows landlords to raise rent, but the amount and the way they do it are regulated. The primary statewide rule is AB 1482 – the Tenant Protection Act of 2019. It applies to most residential properties built before January 1 2005 and that are not already covered by a local rent‑control ordinance.

What AB 1482 Allows

• Annual increase cap – The landlord may raise rent by the lesser of 5 % plus the percentage change in the Consumer Price Index (CPI) for the area, or 10 % in a 12‑month period.
• Notice requirement – A written notice must be given at least 30 days before the increase if it is 10 % or less, and 90 days if it exceeds 10 %.
• Justified “capital improvement” increases – A landlord can add a one‑time charge for a genuine improvement (e.g., installing a new AC unit) only if the cost is passed on in a separate, itemized statement and the increase does not exceed the actual cost of the improvement. It cannot be disguised as a regular rent hike.

When AB 1482 Does Not Apply

• Buildings constructed after January 1 2005 are exempt.
• Single‑family homes or condos that are owner‑occupied are also exempt, unless the owner has elected to opt into the law.
• If a local city has its own rent‑control ordinance (Laguna Niguel does not have one), that local rule would take precedence.

Applying the Rules to Your Situation

Step‑by‑step check

1. Determine if the property is covered by AB 1482

   • If the building was built before 2005, the act applies.
   • If it was built after 2005, the landlord can generally raise rent as he wishes, subject only to the lease terms and any local ordinances (none in Laguna Niguel).

2. Calculate the allowable increase

   • Find the CPI change for the Orange County area for the relevant year (published by the U.S. Bureau of Labor Statistics).

   • Example: If CPI rose 2 %, the cap would be 5 % + 2 % = 7 % (or 10 %, whichever is lower).

   • Compare that to the actual percentage increase:

     • From $3,075 to $3,190 = 3.7 % (likely permissible).
     • From $3,190 to $3,400 = 6.6 % (still under a 7‑10 % cap).
     • From $3,400 to $3,600 = 5.9 % (again within the cap).

   • If the CPI for the year was very low, any increase above 5 % could be excessive.

3. Check the “capital improvement” rule

   • The $115 increase for AC must have been documented as a separate, itemized charge reflecting the actual cost of the unit and installation. If it was simply added to the base rent without proper notice, it may violate the law.

4. Review the lease terms

   • A fixed‑term lease (e.g., a two‑year lease) locks the rent for that period. The landlord cannot raise rent mid‑lease unless the lease expressly allows it.
   • At renewal, the landlord may propose a new rent, but the proposal must still respect the AB 1482 caps if the law applies.

What You Can Do

• Gather documentation – Lease agreements, rent‑increase notices, any itemized statements for the AC work, and the building’s construction date.
• Calculate the CPI‑based cap – Use the BLS CPI data for “Los Angeles‑Long Beach‑Anaheim” (the region that includes Laguna Niguel).
• Compare the actual increase to the legal limit – If the increase exceeds the cap, you have a potential claim.
• Send a written request – If you believe an increase is unlawful, you can write a polite letter citing AB 1482 and ask the landlord to correct the rent amount. Keep a copy for your records.
• File a complaint – You may file a complaint with the California Department of Consumer Affairs – Civil Code Enforcement or with the Orange County Superior Court (small‑claims division) if the disputed amount is under $10,000.
• Consult an attorney – A landlord‑tenant lawyer can review the specifics, confirm whether the property is exempt, and advise on filing a lawsuit or negotiating a settlement.

Helpful Resources

• California Tenant Protection Act (AB 1482) – summary and text on the California Legislative Information site: California AB 1482
• Consumer Price Index data – U.S. Bureau of Labor Statistics CPI for the Los Angeles area: BLS CPI Los Angeles

Because rent‑increase rules can hinge on the building’s age, exact CPI figures, and the precise language of your lease, a licensed attorney is the best source for personalized advice. They can help you determine whether the landlord’s actions are illegal and guide you through any legal remedies.