California officials are warning against price gouging as rents soar in fire-stricken Los Angeles. (AP: John Locher)
Southern California's expensive housing market is going to get a lot more competitive after deadly fires torched more than 12,000 homes and other structures in the Los Angeles area, leaving tens of thousands of people without a place to stay.
Already there are reports of rent-gouging, prompting elected leaders to issue stern warnings against the practice and pleading with the public to report unethical property owners who hike up rents.
California Attorney General Rob Bonta said in a statement on Saturday local time that it is illegal for landlords to increase rent by more than 10 per cent.
"You cannot jack up prices and take advantage of disaster victims, plain and simple," he said at a news conference.
A modern three-bedroom condo in a downtown LA high-rise, for example, that was offered at $US5,500 ($8,037) a month in October popped back up on US real estate company Zillow this week with a new asking rent of $US8,500 ($13,728).
On Saturday, the listing was removed.
The fires have catapulted the twin crises of housing and homelessness. (AP: Scott Strazzante/San Francisco Chronicle)
The entire state has struggled with the twin crises of housing and homelessness, and only recently starting to make inroads to build more affordable homes.
Are landlords allowed by law to increase rents?
California law prohibits price-gouging after an emergency has been declared, meaning that individuals and businesses cannot increase the price of goods and services such as gas or rentals by more than 10 per cent from before the emergency was declared.
Price-gouging is a misdemeanour punishable by up to a year in jail and $US10,000 ($16,128) fine for each violation.
Protections related to housing are generally in effect for 30 days.
But on Thursday, Governor Gavin Newsom extended prohibitions on motel, hotel and rental housing to March 8.
Is there evidence of increased rents across Los Angeles?
Tenants rights and landlord association groups have called for strict enforcement against rent gougers amid media reports of obscenely high prices.
People on social media are crowd-sourcing examples of egregious increases, and even inputting their findings into a shared Google document.
A four-bedroom, four-bath house in Encino, for example, seeking renters at $US12,000 a month ($19,379) in December was re-listed on January 13 with a new price of $US14,000 ($22,609).
A three-bedroom, four-bath house in LA listed for rent at $US16,000 ($25,839) in September was re-listed this week at $US29,000 a ($46,834) month.
All exceed the 10 per cent cap. By Saturday, both listings had been removed.
People on social media are crowd-sourcing examples of egregious increases after the fires. (Reuters: David Ryder)
What help does FEMA do?
Displaced people with home owners or renters insurance can receive living expenses to stay at a hotel or rental.
The Federal Emergency Management Agency (FEMA) has several programs for displaced residents.
It will pay for short-term stays at participating hotels and motels.
It also provides cash in advance for housing through its displacement and rental assistance programs.
FEMA also reimburses out-of-pocket lodging expenses that are not covered by insurance.
What about mortgage relief?
Governor Newsom's office on Saturday announced that five major bank lenders have agreed to provide mortgage relief to affected home owners, including a 90-day grace period on mortgage payments, 90-day waiver of late fees, and 60- to 90-day moratorium on new foreclosures.
LA wildfires poses challenges to Newsom's leadership
Photo shows Gavin Newsom dressed in a hat, sunglasses and a jacket walks on a road. A plume of smoke extends over the sky in the background.
The banks include Bank of America, Citi, JPMorgan Chase, US Bank and Wells Fargo.
How is Airbnb responding?
Short-term rental platform Airbnb said Wednesday that hosts in Los Angeles and Ventura counties who try to raise prices by more than 10 per cent will instead receive an error message.
The company is also sending reminders to hosts that price gouging during a state of emergency is illegal.
Zillow is posting "important information for renters during a state of emergency" on area rentals, informing applicants of the law.
AP
