California Atty. Gen. Rob Bonta warned landowners Saturday that price gouging rules put in place in the wake of the Los Angeles County fires also apply if bidding wars break out over their properties.
Under these rules, which went into effect when the governor declared a state of emergency, local landlords generally can’t charge more than 10% more than pre-crisis charges or advertised amounts.
Many landlords are trying to charge above that mark anyway, sometimes listing properties online with price increases of over 50% or even 100%.
The rental ads have drawn outrage from politicians, tenant groups and even some landlord groups, who are calling for law enforcement to crack down on them.
Although Bonta has promised to prosecute, there is confusion among some agents, property owners and tenants about whether the law applies in the case of bidding wars.
Sometimes, at the urging of the property owner, or of their own volition, fire victims try to find a home in a tight market after their home has been destroyed by fire, making offers well above the original asking price. may be submitted.
In a news release Saturday, the attorney general’s office sought to clarify the confusion, clarifying that price gouging laws apply to bidding wars and landlords cannot accept offers that bring rents above the limits set by law.
“The bottom line is that landlords cannot charge or accept more than the 10% limit set by California’s price gouging law, even if they can find someone willing to pay,” Bonta said in a statement. That’s what I mean.” “Our Congress has enacted strong protections for renters during a crisis, and I am fully committed to ensuring those protections are followed and respected.”
If convicted of price gouging, a landlord could face up to one year in prison and a $10,000 criminal penalty for each violation. The Attorney General’s Office urged Californians who believe they have been victimized by price gouging to report it at oag.ca.gov/report.
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