California Atty. Gen. Rob Bonta on Saturday warned landlords that price-gouging rules in effect because of the Los Angeles County fires apply even in cases where bidding wars break out over their property.
Under those rules, which kicked in when the governor declared a state of emergency, local landlords generally can’t charge more than 10% above what they were charging or advertising before the crisis.
Many landlords have tried to charge above those levels anyway, posting listings online that sometimes shows increases greater than 50% or even 100%.
The rental ads have drawn outrage from politicians, tenant groups and even some landlord organizations who have all urged law enforcement to crack down.
Bonta has promised to prosecute, but there has been confusion among some agents, property owners and tenants whether the law applies to instances where there is a bidding war.
At times, fire victims — either at the property owner’s urging, or under their own volition — have submitted offers well above the initial asking price, desperate to find housing in a tight market after the fires destroyed their homes.
In a news release Saturday, the attorney general’s office sought to clarify any confusion, explicitly saying that the price-gouging law applies to bidding wars, with landlords unable to accept offers that result in rent exceeding the limits otherwise set by the law.
“The bottom line is this: landlords cannot charge, or accept, rent that exceeds the 10 percent cap set by California’s price gouging statute, even if they find someone who is willing to pay it,” Bonta said in a statement. “Our legislature has enacted robust protections for renters during times of crisis, and I’m committed to ensuring that those protections are followed and respected.”
If convicted of price gouging, landlords can face up to a year in jail and criminal penalties of $10,000 per violation. The attorney general’s office urged Californians who believe they’ve been a victim of price gouging to report it at oag.ca.gov/report.
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