California officials warn against price gouging as rents soar in fire-stricken Los Angeles
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Southern California's expensive housing market is going to get a lot more competitive after deadly firestorms torched more than 12,000 homes and other structures in the Los Angeles area, leaving tens of thousands of people without a place to stay. Already there are reports of rent-gouging, prompting elected leaders to issue stern warnings against the practice and pleading with the public to report unethical property owners who hike up rents above the allotted 10% cap.
“You cannot jack up prices and take advantage of disaster victims, plain and simple,” said California Attorney General Rob Bonta at a news conference Thursday. A modern three-bedroom condo in a downtown LA high-rise, for example, that was offered at $5,500 a month in October popped back up on Zillow this week with a new asking rent of $8,500. On Saturday, the listing was removed.
The entire state has struggled with the twin crises of housing and homelessness, only recently starting to make inroads to build more affordable homes. Are landlords allowed by law to increase rents?. California law prohibits price-gouging after an emergency has been declared, meaning that individuals and businesses cannot increase the price of goods and services such as gas or rentals by more than 10% from before the emergency was declared.
Price-gouging is a misdemeanor punishable by up to a year in jail and $10,000 fine for each violation. Protections related to housing are generally in effect for 30 days. But on Thursday, Gov. Gavin Newsom extended prohibitions on motel, hotel and rental housing to March 8.
