Jason Oppenheim, star of "Selling Sunset," says some landlords are illegally raising rents after the Los Angeles wildfires. The Los Angeles real estate mogul, who runs a luxury real estate brokerage in the Netflix reality show, revealed that despite California’s anti-"price gouging" laws, one client was asked to pay thousands of dollars more than the original asking price for a rental property.
Meanwhile, Los Angeles officials have warned that anyone found to be "taking advantage" of the disaster by scamming or stealing from fire victims will be prosecuted. Thousands of people have lost their homes in Los Angeles, and displaced victims say they are facing exorbitant rental and hotel costs. Oppenheim said his company, known for selling the most expensive and glamorous homes in Los Angeles, is now offering its services for free and has received dozens of calls from people who have lost their homes.
On BBC One’s “Sunday with Laura Kuenssberg,” Oppenheim described an experience of sending a client to view a property, where the landlord had previously asked for $13,000 a month. "My client offered $20,000 a month and offered six months upfront, and the landlord said 'I want $23,000,'" he said. "There are price gouging laws in California, but they're being ignored right now, and this is not the time to take advantage of the situation." He added that the disaster is "emotionally devastating" for everyone.
California authorities have warned businesses that it is illegal to raise the price of goods more than 10% above pre-disaster costs. California Attorney General Rob Bonta also said on Saturday that he has seen some landlords illegally raising prices. "You cannot do this. It is a crime punishable by up to a year in jail and a fine," he said. "This is California law, and it is intended to protect those who have suffered a tragedy."
A retiree named Brian, who only wanted to give his first name, had lived in a rent-controlled apartment in Pacific Palisades for two decades and lost his home in the fires. The 69-year-old is worried that his pension will not be enough for him to find a new home in a city where rents have doubled in the past decade. According to real estate listing site Zillow, the median rent for a home in Los Angeles is $2,800 (£2,295). "I am re-entering the market with thousands of other people," Brian told AFP, "and that is 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 looking to commit theft or "white-collar crimes or scams" that police and prosecutors are watching closely. Meanwhile, Los Angeles Police Chief Jim McDonnell said that "people will go to any length to take advantage of the victims of this tragedy." Mr. McDonnell said that there are "a lot of scams" and warned those who want to offer help to "donate cautiously."
He encouraged people to do their due diligence to find reputable organizations, suggesting resources such as 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 had been arrested during the fires, including a man who impersonated a firefighter to burglarize homes. He said police are "eager to prosecute" anyone "taking advantage of our residents during this very difficult time" and specifically warned of "white-collar" scams.
On Saturday, Los Angeles police said the number of arrests for looting was "continuing to rise." However, despite the misconduct of some, Los Angeles Mayor Karen Bass said that more than $6 million (£4.9 million) had been donated to the California Community Foundation Wildfire Recovery Fund by more than 13,000 people since the fires began on Tuesday.