The destructive Los Angeles wildfires have left tens of thousands of families scrambling to find housing in an unaffordable and competitive rental market. Now, reports of landlords illegally hiking rental prices and other predatory practices are spurring a massive community response.
Price gouging, including for rental housing, is illegal during a state of emergency, which was declared by California Gov. Gavin Newsom on Jan. 7. During emergencies, landlords are prohibited from raising rental housing prices by more than 10% of the previously advertised price.Â
Yet government agencies and legal organizations continue to be “inundated with complaints of price gouging from tenants and prospective tenants,” said Javier Beltran, deputy director of the Housing Rights Center.Â
Lauren Ravitz, a real estate agent with Berkshire Hathaway speaking out against these practices, has witnessed landlords doubling listing prices and asking tenants how much they’re willing to pay, further stoking bidding wars and driving up rental costs in LA and the surrounding areas.Â
An array of governmental agencies, community groups and tenants’ rights organizations are urging people to report examples of price gouging, whether they’ve spotted it or have experienced it themselves.Â
“We’ve been trying to educate because our goal is to get the price down,” said Samira Tapia, real estate agent at Compass. The intention is not to send violators to jail but to make renting more affordable in a time of crisis. “People are banding together, and the good thing is we’re starting to see rents coming down,” she said.
Price-gouging protections under California law
California’s anti–price gouging statute, Penal Code Section 396, prohibits hiking the cost of goods and services by more than 10%, including on hotels, motels and rental housing, after an emergency has been declared. During this time, landlords are also prohibited from evicting a tenant to rent the property to someone else at a higher price than allowed by the statute.Â
On Jan. 16, Newsom extended price-gouging prohibitions on rental housing until March 8, beyond the typical 30-day period.Â
However, in a hot housing market like LA, where tens of thousands more people are now looking for short-term and potentially long-term housing, many tenants are desperate.Â
“We have a housing shortage at the best of times,” said Tapia.Â
With the huge spike in demand, many tenants are willing to pay more than the asking price and outbidding others. Though it’s still illegal for landlords to accept up-bidding beyond the 10% mark, some inflated rates are flying under the radar.
“Agents should be advising their clients that this is not allowable,” said Tapia.
What to do if you suspect rental price gouging
Visibility and public pressure will help draw attention to housing spikes, hopefully leading to greater scrutiny of illegal practices and establishing more protection for tenants.Â
“If tenants accept the conditions, landlords will think it’s OK and won’t get caught,” said Leonardo Vilchis-Zarate, a community organizer with the LA Tenants Union.
If you suspect rental price gouging, follow these steps.Â
1. Review and document pricing historyÂ
If you’re unsure whether the asking price of a rental has increased by more than 10%, use an online tool to calculate the percentage increase before vs. after the disaster. Once you can confirm an illegal price hike, make a copy of all your records and receipts.Â
2. File a complaint with the California attorney generalÂ
File a complaint with the California Office of the Attorney General at oag.ca.gov/report or by calling 800-952-5225. You’ll need to provide full contact details.Â
Even though the attorney general’s office can’t represent you as a tenant, it can file lawsuits on behalf of victims of price gouging, said Beltran.Â
3. Report the listing to other governmental agenciesÂ
File a complaint with the Los Angeles County Department of Consumer and Business Affairs through its online complaint form or by calling 800-593-8222. Another option is to call your local police department or sheriff’s office and report the issue.
4. Fill out a price-gouging tracker
After you’ve filed your complaint, report any incidences of price gouging to a local tracker compiled by the Strategic Actions for a Just Economy, which is working with Alliance for Community Transit Los Angeles to compile these listings in a crowd-sourced document here.Â
You can also submit any listings through this online form. Providing your name and email is optional.
Beltran said that submitting a complaint through community organizations helps legal service providers and government agencies investigate these allegations further. Â
5. File a civil suitÂ
If you’re committed to exploring legal options as a tenant, you’ll need to get in contact with an attorney. Filing a civil suit is always an option, though it won’t lead to an immediate resolution, according to Beltran.Â
Landlords could face criminal fines
Price gouging is considered a misdemeanor, punishable by up to one year in jail and/or a fine of up to $10,000. California Attorney General Rob Bonta published a statement that violators will be fined and prosecuted.Â
But Beltran says not to expect immediate action from the Department of Justice or county prosecutors because of the volume of complaints.
According to Vilchis-Zarate, one reason advocates are urging public pressure is because housing laws protecting tenants from illegal rent increases, poor conditions and evictions historically haven’t had much bite.
“[Landlords] don’t think that they’re going to get caught, and even if they do get caught, they know that they probably won’t get anything more than a slap on the wrist or be notified that they have to bring their price down,” said Vilchis-Zarate.
How to find emergency and temporary housing
In addition to official legal efforts to curb price gouging, real estate agents like Ravitz and Tapia, as well as various organizations, are stepping in to help wildfire victims find shelter.Â
Airbnb and 211 are providing free accomodations
Partnering with 211 LA, Airbnb.org (the nonprofit providing emergency housing during crises) has already provided free short-term stays to 25,000 LA wildfire evacuees. “The demand has been overwhelming,” said Executive Director Christoph Gorder.Â
Eligible wildfire evacuees can stay in Airbnb-hosted residences for up to 30 days at no cost. Right now the focus is on accommodating the neediest families who’ve lost their homes and jobs. Though the system is inundated with requests, the nonprofit is committing to providing 50,000 additional free nights to support LA residents during the crisis, according to Gorder.Â
To request housing, fill out 211’s intake form. Eligible applicants 18 years and older residing in an evacuation zone must have been displaced from their physical home.Â
The main constraint with expanding temporary housing through Airbnb isn’t limited supply but lack of funding, Gorder said. All donations made on the website go toward compensating Airbnb hosts to provide emergency housing to those in need.
Hotels are offering no-cost and discounted staysÂ
Residents displaced by the wildfires can find hotels in Los Angeles and the surrounding areas offering free or discounted accommodations via a list curated by the Hotel Association of Los Angeles. In addition, HALA has coordinated its efforts with Google so you can get real-time updates on availability and pricing through Google Search.Â
Landlords are updating short-term listings
The Apartment Association of Greater Los Angeles has created a centralized resource for available rental housing, including options for temporary and long-term stays. Dan Yukelson, CEO and executive director at AAGLA, told CNET that the list is constantly being updated to help tenants during the recovery process.Â
The ongoing LA housing crisisÂ
Even with the price-gouging protections in place, the many issues brought to the fore by the wildfires in LA — from climate and water supply to housing policy and homelessness — will require major attention and reform on multiple levels.Â
“The city has always been in a crisis,” said Vilchis-Zarate, referring to the 80,000 unhoused residents living on the streets. “This fire is, of course, a tragic event, but it only adds to the crisis that the city has been living through.”Â
CNET will continue to update this page with new developments. For more articles on the LA wildfires, see:Â
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