Signs of Rent Gouging Proliferate Amid Fires, a Call for Enforcement
A Crisis in the Making
In the Beverly Grove neighborhood of Los Angeles, the asking rent for a two-bedroom condo jumped from $5,000 to $8,000 in the wake of the fires that started last week and have left thousands homeless. In Venice, a single-family house saw a jump of nearly 60%. In Santa Monica, an owner listed a five-bedroom house for $15,000 above what they were asking last year — a gain of more than 100%.
Temporary price gouging protections in place because of the fires are supposed to stop such dramatic rent hikes, but a Times review of online listings this week indicate illegal increases are relatively common. Such listings, which have been blasted on social media, are starting an uproar, causing some landlords to shift course and leading to calls for authorities to prosecute those profiteering off pain.
The Law and Enforcement
California’s price gouging rules kick in following declared states of emergency and last for 30 days unless they are extended. In the case of the local fires, that means landlords generally cannot charge more than 10% above what they were charging or advertising before Jan. 7.
California Atty. Gen. Rob Bonta has warned property owners and the public of the rules and vowed to crack down on violators. Bonta’s office would not disclose the number of price gouging complaints it has received. But Bonta has enlisted teams of lawyers from his offices across the state to evaluate those that have been submitted, a spokesperson for the agency said.
A Call for Enforcement
“If convicted, landlords face up to a year in jail and thousands of dollars in fines. But the matter has rarely been prosecuted after previous major wildfires, and some tenant advocates say price gouging is now so prevalent, because people think they can get away with it.”
Larry Gross, executive director of the Coalition for Economic Survival, a local tenant rights group, said, “They need to move quickly and make an example out of these people.”
The Community Responds
Even some landlords’ organizations are joining the chorus. Fred Sutton, a senior vice president with the California Apartment Assn., told the L.A. City Council on Tuesday, “Throw the book at them.”
A Times review found that some real estate companies are taking action where they can. Zillow, the popular real estate listing website, allows viewers to see a history of rent changes on a listing and has been featured in social media posts.
Complications and Concerns
Complications remain, including leases that have already been signed at inflated prices, raising the prospect of lawsuits from the renters who signed. There have also been bidding wars that occur outside the realm of any formal listing.
Anya Lawler, a policy advocate with the California Rural Legal Assistance Foundation, noted such cases are likely to be harder to prosecute. She also worries that price gouging could pick up again after an initial backlash subsides.
Conclusion
The fires in Los Angeles County have damaged or destroyed more than 12,000 homes and other structures, creating a wave of newly homeless families in a region already in the throes of an affordable housing crisis. The signs of rent gouging are a serious concern, and it is imperative that authorities take swift and decisive action to address this issue.
Frequently Asked Questions
Q: What is price gouging, and how is it defined?
A: Price gouging is the act of charging excessively high prices for essential goods and services, particularly in times of emergency or crisis. In the case of the LA fires, landlords are not allowed to charge more than 10% above the pre-fire rates.
Q: What are the penalties for price gouging?
A: Landlords who engage in price gouging can face up to a year in jail and thousands of dollars in fines.
Q: How can renters report suspected price gouging?
A: Renters can report suspected price gouging to the California Attorney General’s office or to the landlord. They can also share their experiences on social media and with local tenant rights organizations.
Q: What is being done to prevent price gouging?
A: The California Apartment Assn. and other landlord organizations are educating their members about price gouging laws and encouraging them to provide discounts to wildfire-affected residents. Some real estate companies, like Zillow, are using their internal systems to find potential violations and remove listings that exceed the state of emergency threshold.
