Los Angeles, January 16, 2025 – In the midst of ongoing wildfires in Los Angeles, California remains in a state of emergency, with evacuated residents forced to seek shelter, leading to a high demand for rental housing. Landlords who took advantage of the situation by significantly raising rents have received legal warnings from authorities.
Recently, an advocate from the Los Angeles Tenants Union publicly shared a document compiled by volunteers, revealing rent comparisons for over four hundred residences before and after the fires. The rent increases for the vast majority of properties exceeded the 10% limit stipulated by California law, with some luxury homes seeing monthly rent hikes of thousands to tens of thousands of dollars.
After the data came to light, some landlords, influenced by public opinion and legal pressure, decided to withdraw their properties from the rental market, while others adjusted rents to stay within the 10% limit. A real estate agent told the Los Angeles Times that some landlords lacked awareness of regulations and promptly made corrections upon realizing their noncompliance.
Russell McDonald, a California real estate broker, provided an example on X platform where the monthly rent for a $4 million luxury home surged from $15,900 to $29,500. Even rents for regular homes experienced significant increases, such as a property in West Covina where the monthly rent jumped from $2,800 to $5,000.
Since January 7, several wildfires in Los Angeles County have already destroyed at least 12,000 buildings, predominantly residential homes, with nearly 92,000 people still under mandatory evacuation orders. Apart from property owners with multiple residences, the majority of displaced families are facing housing difficulties.
California Attorney General Rob Bonta emphasized at a press conference last Saturday that some businesses and landlords engaging in rent gouging are committing a criminal offense by inflating rents. He stressed that California laws protect disaster-affected individuals, permitting rent increases of up to 10% post-disaster; any higher increase constitutes illegal price gouging.
Price gouging is defined as sellers taking unfair advantage of consumers by significantly raising prices on essential goods or services during emergencies or disasters. The California Department of Justice urges people to report any unlawful behaviors they witness, cautioning that violators, including landlords, could face prosecution, fines of up to $10,000, or even imprisonment for up to a year.
Furthermore, under California law, special consumer protections typically apply from the declaration of an emergency and may last for up to 30 days but can extend to 180 days in the case of rebuilding and emergency cleanup efforts.
Local real estate agent Andy Huang noted a significant rise in local rents recently, causing stress for many tenants. He explained that California law generally allows landlords to raise rent by a maximum of 5% annually, with the total increase not exceeding 10% when factoring in the local inflation index.
According to Los Angeles County regulations effective since August of last year, annual rent increases cannot surpass 8.9%. Properties under rent control (built before 1978) can only increase rent by up to 4%, or 6% if landlords cover water and electricity costs.
What should tenants do if they believe they are victims of rent gouging during the wildfires? The Los Angeles County Department of Consumer and Business Affairs (DCBA) suggests that tenants compare their current rent with pre-emergency rates and equivalent rents in unaffected areas to calculate the increase and determine if they are affected by price gouging.
Attorney General Bonta encourages tenants facing rent gouging or those identifying unlawful behavior to file complaints with the State Attorney General’s Office or contact local law enforcement agencies. The DCBA also accepts complaints through its toll-free hotline at (800) 593-8222 or online at the following link: iddweb.isd.lacounty.gov/dca_ecomplaint/