In urgent need of housing after the Los Angeles wildfires, displaced residents are facing a rental market flooded with unlawful price hikes. The California Association of REALTORS® (C.A.R.) has noted alarming increases in rental prices—some by 25% or more. 

Under California Penal Code Section 396, price gouging is strictly prohibited. Landlords cannot increase the price of rental housing by more than 10% after a State of Emergency is declared. For properties newly advertised or not leased before the emergency, the rent cannot exceed 160% of the fair market value established by the U.S. Department of Housing and Urban Development.

For daily rentals like Airbnb, the increase is similarly capped at 10% post-emergency. If housing was rented on a daily basis prior to the declaration and then offered on a full-time or monthly basis after, the price may not exceed 160% of the fair market value.

Moreover, landlords cannot justify unlawful price increases by providing additional services, covering utilities, or changing lease terms. Evicting a tenant only to re-rent at a prohibited rate is also illegal.

The enforcement of this statute typically lasts for 30 days after an emergency declaration but can be extended by state or local officials. Violations can lead to criminal prosecution, including up to one year in county jail and fines of up to $10,000. Civil penalties of up to $2,500 per violation can also be imposed.

You can report violations to the Attorney General’s office at 1-800-952-5225 or online here

In times like these, it's crucial we come together as a community. If you've been displaced and need real estate advice as you try to relocate, don't hesitate to email us or give us a call at (323) 412-9060.

Posted by Ben Nicolas on
Email Send a link to post via Email Print

Leave A Comment

e.g. yourwebsitename.com
Please note that your email address is kept private upon posting.