Jason Oppenheim, star of "Selling Sunset," says landlords are illegally raising rents during the Los Angeles wildfires. The Los Angeles real estate mogul, known for his luxury real estate brokerage on the Netflix reality show, pointed out that despite California's anti-"price gouging" laws, a client was asked to pay thousands of dollars more than the original price when renting a property. Meanwhile, Los Angeles officials warned that anyone found to be "taking advantage" of the disaster through scams or burglaries would be prosecuted.
Thousands of people have lost their homes in Los Angeles, and displaced victims say they are facing exorbitant rents and hotel costs. Oppenheim said his company, known for selling some of the most expensive and glamorous homes in Los Angeles, is currently offering its services for free and has received dozens of calls from people who have lost their homes. He described a case on BBC One's "Laura Kuenssberg Sunday" where a client was interested in a property where the landlord had previously asked for $13,000 per month.
"My client offered to pay $20,000 a month and was willing to prepay six months' rent, but the landlord said, 'I want $23,000,'" Oppenheim said. "California has price gouging laws, and they are being ignored right now, and this is not the time to take advantage of the situation." The 47-year-old real estate agent added that the disaster has left "everyone feeling emotionally down." He stated, "Everyone is in tears all day long, not just because of the smoke but because it's sad to see people struggling so much."
California authorities have warned businesses not to illegally increase the price of goods by more than 10% of their pre-disaster cost. California Attorney General Rob Bonta also said on Saturday that he has seen landlords illegally raising prices. "It's not allowed. It's a crime punishable by up to a year in jail and fines," he said. "This is California law designed to protect those who have suffered tragedy."
A retiree named Brian, who only gave his first name, lived in a rent-controlled apartment in Pacific Palisades for two decades but lost his home in the fire. The 69-year-old is worried that his pension will not be enough to find a new home in a city where rents have doubled in the past decade. According to real estate website Zillow, the median rent for a property in Los Angeles is $2,800 (£2,295). "I'm re-entering the market with thousands of other people," Brian told AFP, "and that's not a good sign."
Price gouging is just one of the crimes that have emerged from the disaster, which has left at least 16 people dead. Los Angeles County Sheriff Robert Luna warned those considering burglaries or "white-collar crimes or scams" that police and prosecutors are closely monitoring. Meanwhile, Los Angeles Police Chief Jim McDonnell said, "People will take advantage of the victims of this tragedy in any way they can." Mr. McDonnell said there are "a lot of scams" and warned those who want to help to "be careful where you donate." He encouraged people to do their research, find reputable organizations, and suggested using resources like Charity Navigator or the Better Business Bureau, and urged residents to report fraud. "Together, we can prevent further harm and protect the generosity of our community," he said.
Meanwhile, County Sheriff Luna said that about 29 people have been arrested so far in connection with the fires, including a man who posed as a firefighter to commit burglary. He said police are "eager to prosecute" anyone who "takes advantage of our residents during this very difficult time" and specifically warned to be wary of "white-collar" scams. On Saturday, Los Angeles police said the number of people arrested for looting was "continuing to grow." However, despite the misconduct of some, Los Angeles Mayor Karen Bass said that more than $6 million (£4.9 million) has been donated to the California Community Foundation Wildfire Recovery Fund by over 13,000 people since the fires began on Tuesday.