Staying Protected from Rent Increases and Price Gouging During California’s Wildfires
By Matt Kohanbash Esq.
California is once again in the midst of devastating wildfires—this time centered around Pacific Palisades and the Eaton Fire near Altadena. In response, state and local officials have declared a state of emergency, calling in the California National Guard to assist. Unfortunately, whenever crises arise, there’s always a possibility of businesses—including landlords—attempting to exploit vulnerable residents through price gouging. This article will help you understand how California law applies to rental housing during a state of emergency, and what steps you can take if you believe you’re being overcharged.
What Is Price Gouging?
Price gouging generally refers to raising prices more than 10% above pre-emergency levels for essential goods or services once a state of emergency is declared. In California, Penal Code § 396(c) makes it illegal to hike prices for items like hotel rooms, rental housing, and essential supplies beyond that threshold. If you are a renter, this also means your landlord generally cannot increase rent by more than 10% during (and shortly after) an official emergency declaration—unless they can prove legitimate added costs.
How Long Do These Protections Last?
1. Initial Duration: Price-gouging rules normally stay in effect for 30 days from the date an emergency is declared.
2. Extended Services: For contractor-related services (such as repair and construction), the prohibition can last up to 180 days. This prevents unscrupulous providers from overcharging homeowners during rebuilding efforts.
Consequences for Violators
Violators can face fines up to $10,000, one year in jail, or both. Additionally, they may be subject to further civil penalties. California’s Attorney General and local prosecutors have signaled they are monitoring complaints, so enforcement is active.
Steps to Protect Yourself
1. Document Everything
• Keep copies of rental agreements, written notices, and any communications with your landlord. Make a note of dates and amounts related to rent or any extra fees.
2. Check Your Lease & Local Ordinances
• Verify whether any rent control or just-cause eviction rules apply in your city or county. For instance, Pasadena reiterated its own rent stabilization and eviction protections, and many other municipalities have their own additional regulations.
3. Report Suspected Violations
• If you suspect your landlord is raising rent above the 10% cap without valid justification, or otherwise violating state law, you can report this to local law enforcement or file a complaint online at dcba.lacounty.gov (or by calling 800-593-8222).
4. Seek Legal Guidance
• If you’re unsure about your rights, consult a tenant advocacy group or an attorney who specializes in landlord-tenant law. They can advise you on next steps and help protect your interests.
Recent Official Alerts
• Attorney General Rob Bonta recently issued a consumer alert on price gouging following the state of emergency. The alert clarifies that rental housing price hikes beyond 10% can qualify as illegal gouging.
• NBC4 reported that the California National Guard has been called in to manage the Palisades and Eaton fires. They also confirmed that authorities are actively investigating potential price gouging as residents scramble for safe housing options.
Why It Matters
During a crisis, the priority should be ensuring community safety and stability. Drastic rent increases undermine those efforts, forcing people to choose between evacuation costs, essential supplies, and a roof over their heads. California’s anti–price gouging laws aim to prevent exploitation in these difficult times, ensuring that displaced individuals aren’t priced out of finding safe shelter or forced into paying exorbitant fees for short-term rentals.
In Summary
If you are a tenant in an area affected by the wildfires, remember:
• Rent cannot usually be raised by more than 10% during a state of emergency.
• Document everything and report any suspected illegal price gouging to local authorities.
• Stay informed through official channels like the Attorney General’s Office and local city websites.
• If you encounter any gray areas or need personalized advice, consider reaching out to a qualified attorney or a local tenant rights organization.
In a time when many families are coping with evacuation orders, property loss, and health concerns, the law is meant to safeguard residents from further hardship. By understanding your rights and the legal framework in place, you can better protect yourself—and help hold violators accountable.
Disclaimer: This article is intended for general informational purposes only and does not constitute legal advice. If you’re facing a legal issue related to rent increases or any form of price gouging, consult a qualified attorney for advice specific to your situation.
Need Assistance?
Our office is more than happy to help anyone who suspects they are being unfairly targeted by price gouging. Feel free to email us at services@solumspacelaw.co or call us at (310) 405-0014.
