'Dollar signs in their eyes': Los Angeles landlords illegally jack up rent after fires

25 January

The recent wave of January wildfires in Los Angeles County that have displaced 150,000 people and counting has some landlords in the area looking to cash in on the surge in demand.

That's according to a Saturday article in the Washington Post, which reported that some landlords have been imposing double-digit rent hikes on their properties in the wake of the unprecedented fires. The Post found that rents across Los Angeles County have gone up by roughly 20%, well beyond the state-approved limit of 10% that California Governor Gavin Newsom (D) put in place for hotels, housing, gasoline and other essentials with an executive order earlier this month.

In rental properties listed in Beverly Hills, Encino, Glendora and Tarzana, the Post found that rents increased by triple-digit percentages when comparing prices before and after the wildfire outbreak. A single-family home in Sherman Oaks that rented for $5,473/month before the fire now rents for $10,890 — a 99% increase.

The state is already pursuing some property owners for alleged price gouging. California Attorney General Rob Bonta (D) said earlier this week that one couple trying to rent a home after they were displaced by the Eaton Fire was informed by a real estate agent that the price had gone up by 38%. Bonta's office is now prosecuting that agent, who could face up to a year in prison and a fine of up to $10,000 if convicted.

"These predators are looking at the disaster with dollar signs in their eyes," Bonta said.

Los Angeles County has since established a task force focused on price gouging. The Post reported that Rafael Carbajal, who heads the county's Department of Consumer and Business Affairs, has already received more than 600 complaints alleging price gouging since the fires broke out earlier this month. That's roughly 200 more complaints received than in the entire first year of the Covid-19 pandemic.

“I’m being confronted with this feeling of panic, from, I would find a place no problem, to ‘Oh my God, the margins are getting thinner,’” 28-year old LA County resident Sam Delfavero told the Post.

Josh Lederer, who was displaced from his Pacific Palisades home, has moved his family four times since the fires broke out, and has had difficulty finding an affordable place to stay. Lederer told the Post that his problem is compounded by the fact that he needs to remain close to his still-standing home in order to accommodate insurance adjusters and remediation companies.

“Places that were renting out for $4 a square foot went to $8 a square foot,” Lederer said. “I saw the same listing on different websites for twice the price that it was listed for on another website last week.”

The paper discovered that one rental listed on Zillow before the fires was abruptly taken down after its rent was revised upwards of 40%. It was later re-listed by real estate firm Nest Seekers International. Post reporters got a cold response when asking the company if the property had been leased and if the new, higher price on Zillow was correct.

"Do yourself a favor and jump in the lake,” Nest Seekers International told the Post — followed by an "expletive" — before hanging up.

Click here to read the Post's report in its entirety (subscription required).

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