The devastating Los Angeles fires have left tens of thousands of families scrambling to find housing in an unaffordable and competitive rental market. Now, reports of landlords illegally raising rents and other predatory practices are prompting a massive community backlash.
Price gouging, including for rental housing, is illegal during the state of emergency, which was declared by California Gov. Gavin Newsom on January 7. During emergencies, landlords are prohibited from increasing rental housing prices by more than 10% of previously announced prices.
Still, government agencies and legal organizations continue to be “inundated with price-gouging complaints from renters and prospective renters,” said Javier Beltran, deputy director of the Housing Rights Center.
Lauren Ravitz, a real estate agent with Berkshire Hathaway speaking out against these practices, has seen landlords double list prices and ask tenants how much they’re willing to pay, further fueling bidding wars and driving up rental costs in LA and surrounding areas.
A number of government agencies, community groups and tenants’ rights organizations are encouraging people to report examples of price gouging, whether they’ve noticed it or experienced it themselves.
“We’ve been trying to educate because our goal is to lower the price,” said Samira Tapia, real estate agent at Compass. The intention is not to send offenders to prison, but to make rent more affordable in a time of crisis. “People are coming together and the good thing is we’re starting to see rents come down,” she said.
Price gouging protection under California law
California’s anti-price gouging statute, Penal Code Section 396, prohibits raising the cost of goods and services by more than 10%, including hotels, motels and rental housing, after an emergency has been declared. During this time, landlords are also prohibited from evicting a tenant in order to rent the property to someone else at a higher price than allowed by statute.
On Jan. 16, Newsom extended the moratorium on price increases for rental housing until March 8, beyond the typical 30-day period.
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 renters are desperate.
“We have a housing shortage at the best of times,” Tapia said.
With demand so high, many tenants are willing to pay more than the asking price and offer more than others. Although it is still illegal for landlords to accept offers beyond the 10% limit, some inflated fees are flying under the radar.
“Agents should advise their clients that this is not permissible,” Tapia said.
What to do if you suspect that the rent price is going up
Public visibility and pressure will help draw attention to the housing booms, hopefully leading to greater scrutiny of illegal practices and creating more protections for tenants.
“If tenants accept the terms, 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 a rent increase, follow these steps.
1. Review and document pricing history
If you’re not sure whether the asking price of a rental has increased by more than 10%, use an online tool to calculate the percentage increase before and after the disaster. Once you can confirm an illegal price increase, make a copy of all your records and invoices.
2. File a complaint with the California attorney general
File a complaint with the California Attorney General’s Office at oag.ca.gov/report or by calling 800-952-5225. You will need to provide full contact details.
Although the attorney general’s office can’t represent you as a tenant, it can file lawsuits on behalf of victims of price gouging, Beltran said.
3. Report the list to other government agencies
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 matter.
4. Complete a price tracker
After you’ve filed your complaint, report any instances of fare hikes to a local tracker compiled by Strategic Action for a Fair Economy, which is working with the Los Angeles Community Transit Alliance to compile these listings into a document with crowd sourced here.
You can also submit any listing through this online form. Providing your name and email is optional.
Beltran said filing a complaint through community organizations helps legal service providers and government agencies investigate the allegations further.
5. File a civil lawsuit
If you are committed to exploring legal options as a tenant, you will need to contact an attorney. Filing a civil lawsuit is always an option, though it won’t lead to an immediate settlement, according to Beltran.
Owners may 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 released a statement that violators will be fined and prosecuted.
But Beltran says not to expect immediate action from the Justice Department or district attorneys because of the volume of complaints.
According to Vilchis-Zarate, one reason advocates are seeking public pressure is because housing laws that protect tenants from illegal rent increases, poor conditions and evictions have historically not had much impact.
“[Landlords] don’t think they’re going to get caught, and even if they do, they know they’re probably not going to get anything more than a slap on the wrist or notice that they have to lower their price,” Vilchis-Zarate said.
How to find emergency and temporary housing
In addition to official legal efforts to curb rising prices, real estate agents like Ravitz and Tapia, as well as various organizations, are stepping in to help wildfire victims find housing.
Airbnb and 211 offer free accommodation
In partnership with 211 LA, Airbnb.org (the non-profit organization that provides emergency shelter during crises) has already provided free short-term stays to 25,000 LA fire evacuees. “Demand has been great,” said executive director Christoph Gorder.
Eligible fire evacuees can stay in Airbnb-hosted residences for up to 30 days at no cost. At the moment the focus is on housing the most needy families who have lost their homes and jobs. Although the system is inundated with requests, the nonprofit is committing to providing an additional 50,000 free nights to support LA residents during the crisis, according to Gorder.
To request shelter, complete the 211 intake form. Eligible applicants 18 years of age or older who reside in an evacuation zone must have moved from their physical home.
The main limitation with the expansion of temporary housing through Airbnb is not the limited supply, but the lack of funds, Gorder said. All donations made on the website go towards compensating Airbnb hosts to provide emergency accommodation to those in need.
Hotels offer free and discounted stays
Residents displaced by the wildfires can find hotels in Los Angeles and surrounding areas that offer free or discounted lodging through a list curated by the Los Angeles Hotel Association. In addition, HALA has coordinated its efforts with Google so that you can get real-time updates on availability and pricing through Google Search.
Owners are updating short term listings
The Apartment Association of Greater Los Angeles has created a centralized resource for available rental housing, including options for short-term and long-term stays. Dan Yukelson, CEO and executive director at AAGLA, told CNET that the list is constantly being updated to help tenants through the recovery process.
LA’s ongoing housing crisis
Even with price protections in place, the many issues highlighted by the LA fires — from climate and water supply to housing policy and homelessness — will require significant attention and reform at multiple levels.
“The city has always been in a crisis,” Vilchis-Zarate said, referring to the 80,000 homeless residents who live on the streets. “This fire is certainly a tragic event, but it only adds to the crisis that the city has gone through.”
CNET will continue to update this page with new developments. For more articles on the LA fires, see:
