Don’t fall victim to rent gouging. Housing resources for wildfire evacuees in Los Angeles

The destructive Wildfires in Los Angeles left tens of thousands of families struggling to find housing in an unaffordable and competitive rental market. Now, reports of landlords illegally raising rents and other predatory practices are causing a huge public backlash.

Price gouging, including for rental housing, is illegal during a state of emergencywhich was announced by California Governor Gavin Newsom on January 7. During emergency situations, landlords are prohibited from increasing rental housing prices by more than 10% of the previously advertised price.

Still, government agencies and legal organizations continue to be “inundated with price-gouging complaints from tenants and prospective tenants,” he said. Javier BeltranDeputy Director of the Center for Housing Rights.

Lauren RavitzA Berkshire Hathaway real estate agent who has spoken out against these practices has seen landlords double listing prices and ask tenants how much they are willing to pay, further fueling bidding wars and driving up rental costs in Los Angeles and surrounding areas.

Many government agencies, community groups and renters’ rights organizations are urging people to report examples of price gouging, whether they’ve seen it or experienced it themselves.

“We’re trying to educate because our goal is to lower the price,” he said Samira Tapiareal estate agent at Compass. The intention is not to send offenders to prison, but to make rent more affordable in times 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 increase in the price of goods and services by more than 10%including for hotels, motels and rental housing after a state of 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 rate than allowed by statute.

On January 16, Newsom expanded the ban on price increases on rental housing until March 8outside the typical 30-day period.

However, in a hot housing market like LAwhere 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 the huge spike in demand, many renters are willing to pay more than the asking price and outbid others. While it’s still illegal for landlords to accept bids above 10%, some inflated rates fly under the radar.

“Agents should advise their clients that this is unacceptable,” Tapia said.

What to do if you suspect rent gouging

Visibility and public pressure will help draw attention to housing booms, hopefully leading to greater scrutiny of illegal practices and establishing 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 in Los Angeles Tenants Union.

If you suspect rent gouging, follow these steps.

1. Review and document price history

If you are not sure if the asking rental price 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 receipts.

2. File a complaint with the California Attorney General

File a complaint with the California Office of the Attorney General 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 overcharges, Beltran said.

3. Report the list to other government agencies

File a complaint with the Los Angeles County Department of Consumer and Business Affairs at 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 problem.

4. Complete a price tracker

After submitting your complaint, report any price increases to a local tracker compiled by Strategic Actions for a Just Economy, which worked with the Alliance for Community Transit Los Angeles to compile these lists in crowdsourced document here.

You can also submit any classifieds 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 these allegations further.

5. File a civil lawsuit

If you are determined to explore legal options as a tenant, you will need to contact an attorney. Filing a civil suit is always an option, though it won’t result in an immediate resolution, according to Beltran.

Landlords can face criminal fines

Price gouging is a felony 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.

But Beltran says he doesn’t expect immediate action from the Justice Department or district attorneys because of the volume of complaints.

According to Vilchis-Zarate, one of the reasons advocates are pushing for public pressure is that housing laws protecting tenants from illegal rent increases, poor conditions and evictions have historically not mattered much.

“(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 being told they have to bring their price down,” said Vilchis- For nothing.

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.

Airbnb and 211 provide free accommodation

In partnership with 211 LA, Airbnb.org (the non-profit organization providing emergency housing during crises) has already provided free short-term stays to 25,000 LA wildfire evacuees. “Demand is huge,” said CEO Christoph Gorder.

Eligible wildfire evacuees can stay in Airbnb-hosted housing for up to 30 days for free. Currently, the focus is on housing the most needy families who have lost their homes and jobs. Although the system has been flooded with requests, the nonprofit is committed to providing 50,000 additional free nights to support Los Angeles residents during the crisis, according to Gorder.

To request housing, complete the 211 intake form. Eligible applicants 18 years of age and older living in an evacuation zone must have been evacuated from their physical home.

The main limitation to the expansion of temporary housing through Airbnb is not a limited supply, but a lack of funding, Gorder said. Everyone donations made on the website go toward compensating Airbnb hosts to provide emergency housing to those in need.

Hotels offer free and discounted stays

Residents displaced by the wildfires can find hotels in Los Angeles and surrounding areas offering free or discounted lodging through list prepared by the Los Angeles Hotel Association. Additionally, HALA is coordinating with Google so you can get real-time updates on availability and pricing via Google Search.

Landlords update short-term listings

The Greater Los Angeles Apartment Association created a a centralized resource for available rental housingincluding options for temporary and long-term stays. And YukelsonCEO and Executive Director of AAGLA, told CNET that the list is constantly being updated to help tenants during the recovery process.

Los Angeles’ ongoing housing crisis

Even with price-gouging protections in place, the many issues brought to the fore by the L.A. wildfires — from climate and water supply to housing policy and homelessness – will require serious attention and reform at many levels.

“The city has always been in crisis,” Vilchis-Zarate said, referring to the 80,000 homeless residents who live on the streets. “This fire is, of course, a tragic event, but it only adds to the crisis the city is going through.

CNET will continue to update this page with new developments. For more articles on the Los Angeles wildfires, see: