Landlords in fire-ravaged Los Angeles have raised rents — in some cases by more than double the price — in violation of California’s law against price gouging as thousands of residents seek shelter.
By law, landlords are not allowed to increase the price of housing by more than 10% after declaring a state of emergency.
But a search of local listings and realtor horror stories shows that many opportunistic landlords are blatantly flouting the law after wildfires ravaged entire communities. About 12,000 structures, from Malibu to Pacific Palisades to Altadena, were left in ruins.
Samira Tapia, a Los Angeles-based real estate agent, told the New York Times that her review of more than 400 listings found that almost 100 properties had increased rents beyond the 10% threshold.
A rental property in North Hollywood went up $800 overnight, to $5,700 a month, she told the outlet.
In one extreme case, a five-bedroom Santa Monica home listed for $12,500 per month last February 2024 was recently listed for $28,000 per month — a 124% increase, according to Inside Edition reporter Lisa Guerrero.
Laura Kate Jones, another LA-based realtor who is looking for a home for a client whose Pacific Palisades property was destroyed by wildfires, found that rents for some properties in West LA increased by 15% and 20% overnight.
A listing agent raised the rent by $3,000 during a tour, she said.
“People are so panicked and desperate to get into a home right now that they’re just blowing money,” Jones told the Times.
“The people who benefit from it. It’s terrible.”
Chelsea Kirk, director of policy and advocacy at Strategic Action for a Fair Economy, compiled a crowdsourced spreadsheet that includes addresses, Zillow links, rent increase dates and exact prices before and after the increase.
Among the listings that stand out is a 9,615-square-foot Tudor mansion in Bel Air. The home was listed for $29,500 per month in December.
But last week the listing resurfaced with a new price — $39,000 a month.
Even the price for smaller and more affordable properties has increased. A 1,200-square-foot, two-bedroom home in Woodland Hills that was listed for $3,900 in November is now going for $5,900, according to Yahoo News.
Excessive requests for housing come regardless of the Governor of California. Gavin Newsom declared a state of emergency last Tuesday, invoking anti-price gouging laws to curb opportunistic rent hikes.
Real estate professionals and housing advocates urged state authorities to aggressively enforce price gouging laws.
Jason Oppenheim, of Netflix’s Selling Sunset, has publicly condemned the practice, describing it as “illegal and immoral” during a crisis.
California Attorney General Rob Bonta has also pledged to investigate violations and impose penalties, including fines of up to $10,000 and imprisonment.
Los Angeles Mayor Karen Bass, whose response to the fires has been heavily criticized, announced Sunday that the city had launched “a new, simple take-back system” to report price gouging.
“Call @MyLA311 to report illegally inflated rents and prices,” Bass posted on X. “We have zero tolerance for it.”
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