Rent Gouging Laws for Landlords After Los Angeles Wildfires

Rent Gouging Laws for Landlords After Los Angeles Wildfires

Mar 5, 2025

The recent wildfires in Los Angeles have left thousands without homes, leading to an increased demand for rental properties. As a landlord, it’s important to understand how California’s price gouging laws impact your rental rates during this state of emergency. Violating these laws can result in hefty fines and legal consequences.

Under California’s anti-price gouging protections, landlords cannot raise rent by more than 10% of the previous rate, and new rental listings must adhere to fair market value limits. These restrictions aim to prevent exploitation during crises, ensuring displaced residents have access to reasonably priced housing.

At SNS Law Group, we specialize in landlord-tenant law and can help you navigate these regulations while maximizing your rental income legally. Contact us today to ensure you’re meeting all legal requirements while supporting the community’s recovery efforts.

Transcript:

Thousands of people lost their homes in the deadly fires that ravaged Los Angeles County recently. Now, many people are looking for alternative housing, which has created substantial demand for rental properties. As a landlord, you need to be aware of the effects of the recent Los Angeles fires on your rental properties, including California price gouging laws. Violating these price gouging laws can expose you to financial liability and stiff penalties.

Hi, my name is Edrin Shamtob, and I’m a licensed California attorney with more than a decade of experience in the real estate law field. My goal is to help property owners and landlords understand laws that will impact their rental properties.

Rent Gouging Protections

10% Increase Limit

Under California law, price gouging protections kicked in during the state of emergency that was recently declared by the governor. As a result of the state of emergency and current price gouging laws, landlords are prohibited from increasing rents by more than 10% from the most recent rent paid by a previous tenant or the amount marketed by the landlord directly before January 7th, 2025.

160% of Fair Market Value

If the property was not on the rental market prior to the fires, property owners can charge up to 160% of the fair market value of the rental property, as provided by the Department of Housing and Urban Development.

Penalties for Violation of Price Gouging Laws

Landlords who even unknowingly violate these price gouging laws may face significant penalties of up to $10,000 per violation. It is critical for you to understand and comply with these anti-price gouging laws.

Landlord-Tenant Law and Los Angeles Wildfires

If you have any questions about the impact of the recent fires on your rental properties, contact SNS Law Group. We specialize in landlord-tenant law and can help guide you towards compliance and maximize your rental income.

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