'Thousands extra over original price': Landlords ripping off LA fire victims, reveals property moghul

As Los Angeles grapples with devastating wildfires that have displaced thousands, reports of landlords exploiting victims have sparked outrage. Jason Oppenheim, the star of Netflix's Selling Sunset and head of a luxury real estate brokerage, has condemned the illegal practice of hiking rents during this crisis, calling it a blatant violation of California’s anti-price gouging laws.

Price gouging by more than 10 percent after an emergency has been declared illegal in California. The reported hikes suggest these laws are being ignored during a time of crisis in the city.

Los Angeles-based news outlets are reporting that rental housing prices are sharply rising as thousands of people are displaced due to the wildfires.

Oppenheim revealed an incident where a landlord demanded exorbitant rent increases from a wildfire victim. Speaking on BBC One’s Sunday with Laura Kuenssberg, he recounted, “[My client] offered $20,000 a month and he offered to pay six months upfront and the landlord said, ‘I want $23,000.’” He stressed, “This isn’t the time to be taking advantage of situations.”

Also read: Los Angeles wildfires: Death toll rises to 24 as winds threaten further destruction

California anti price-gouging laws

California law prohibits businesses and landlords from raising prices more than 10% above their pre-disaster rates, with violations punishable by up to a year in jail and hefty fines. Yet, according to Oppenheim, these laws are being ignored, leaving displaced residents vulnerable.

The devastation has left tens of thousands seeking refuge, and Oppenheim’s brokerage has stepped in, offering free services to assist victims. “It’s emotional for everyone,” he said. “Everyone has tears in their eyes all day long—literally from the smoke but also just because it’s emotional to see people struggling like this.”

Among those hardest hit is Brian, a 69-year-old retiree who lost his rent-controlled apartment of two decades in the Pacific Palisades. With rents in Los Angeles having doubled in the last decade, Brian fears his pension won’t stretch far enough. “I’m back on the market with tens of thousands of people,” he told AFP. “That doesn’t bode well.”

Data from Zillow indicates that the median rent in Los Angeles has soared to $2,800 (£2,295), further straining wildfire victims.

More scams

Authorities have also warned of rising criminal activities targeting wildfire victims, including scams, looting, and even impersonation of first responders. Los Angeles County Sheriff Robert Luna reported approximately 29 arrests tied to the fires, including a man posing as a firefighter to burgle a home.

Sheriff Luna and Police Chief Jim McDonnell urged residents to remain vigilant and report any fraudulent activities. McDonnell emphasized the prevalence of scams, advising people to donate to wildfire recovery efforts only through reputable organizations. “Together, we can prevent further harm and protect the generosity of our community,” he said.

Despite these challenges, there has been an outpouring of community support. Over $6 million (£4.9 million) has been donated to California’s Community Foundation Wildfire Recovery Fund since the fires began, according to Los Angeles Mayor Karen Bass.

As the city struggles to recover, officials are doubling down on their commitment to prosecute those exploiting the tragedy. Attorney General Rob Bonta reiterated, “You cannot do it. It is a crime punishable by up to a year in jail and fines. This is California law, and it’s in place to protect those suffering from a tragedy.”

The death toll from the catastrophic wildfires in Los Angeles reached 24 on Sunday (Jan 12), with authorities cautioning that strong winds could intensify the flames further. The fires, now in their sixth day, have devastated large parts of the city, leaving entire neighborhoods in ruins and displacing thousands of residents.

Efforts to combat the fires have slowed the spread of the Palisades Fire, which had been threatening the affluent Brentwood area and the heavily populated San Fernando Valley.