Rental Price Gouging and Scamming Fueling the Flames for California Wildfire Victims

The Palisades Fire burns above a home in Mandeville Canyon in Los Angeles on Jan. 11, 2025. Eric Thayer/AP Photo

Ever since the deadly California wildfires began, Lauren Ravitz has often been jolted out of bed at 6 a.m. by phone calls from homeless fire victims desperately seeking a place to live. A realtor with Berkshire Hathaway HomeServices Global Network in Los Angeles, Ravitz, has also been receiving up to 100 emails or texts daily.

“It’s a dire situation here, and it’s devastating for those who have lost everything—they’re all scrambling to find a place to rent,” Ravitz told The Epoch Times. “Many have temporarily moved into hotels, some are living in Airbnb’s, and others are sleeping on friend’s sofas.”

To make matters even worse, some wildfire victims, according to Ravitz, have also experienced rental price gouging, despite California Penal Code section 396, which limits rent increases to 10 percent above pre-emergency levels during a state of emergency. That law applies to both existing rentals and new leases.

“Some people were so desperate to find housing that they paid the inflated rates, but now others are starting to realize this and report it,” said Ravitz.

The law states that violators can face up to $10,000 in fines and up to one year in jail. The City of Los Angeles has a separate penalty for landlords who price gauge, increasing fines to up to $30,000.

In addition, scammers have started to pop up, offering bogus properties for rent and then asking potential renters to wire them a deposit in order to hold the rental.

“People are so overwhelmed and in such a frenzy that they often send the money, only to discover that the properties don’t even exist,” Ravitz said.

In the meantime, the Los Angeles County Department of Consumer and Business Affairs is asking residents to report price gouging and other scams to their department.

With the wildfires still uncontained, former homeowners whose properties have now been reduced to rubble are faced with the decision to either rebuild, sell the land and move to another area, or leave the state altogether.

To date, several of Ravitz’s clients have already reached out to architects and builders in hopes of returning to newly constructed homes by next year. Others are moving to nearby Manhattan Beach, where local schools are readily accepting more student enrollments.

“So many people are going through so much in addition to trying to cope with their financial losses,” she said. “I have one client who’s starting chemo and another dealing with Parkinson’s disease. I just want to cry every day.”

Anne Russell, president of the Greater Los Angeles Association of Realtors (GLAR), has already experienced being evacuated from her home but was fortunate enough to be able to return the following day. Her office in Los Angeles is also safe for the time being.

Russell told The Epoch Times that rent gouging is not uncommon, despite the law prohibiting it.

“I’ve told all of our 13,500 realtor members to be aware of this and to share it with their clients,” she said.

“Hundreds of people are now vying for rentals, and most in the area have been taken up. Many seem to be flocking to Santa Monica now, because local hotels can be very expensive.”

GLAR’s website is also cautioning local residents about additional scams involving text messages that pretend to assist people but are in fact phishing scams trying to extract personal information or ask for payments for fake charities.

“Please do not click on links from phone numbers you do not recognize,” the website warns.

Russell considers herself fortunate to have been spared so far from the raging fires.

“My previous office in Pacific Palisade is gone, and I have many friends there who have lost everything,” she said.

While six regional fires have been contained, four continue to burn in the Los Angeles area, including Palisades, Eaton, Hurst, and Auto. The blazes have destroyed thousands of acres and claimed at least 27 lives.

“We have wildfires here all the time, but it’s never happened that we have so many huge fires burning simultaneously,” Russell said. “Add to that our very little rainfall, the strong Santa Ana winds, and an empty Palisades reservoir due to repairs and you have a recipe for disaster.”

GLAR meanwhile has been working with local agencies to provide gift cards for people to buy groceries, clothing, and other necessities. Both the California Association of Realtors Disaster Relief Fund and the National Association of Realtors’ Realtor Relief Fund are standing ready to assist with recovery efforts.

As for the real estate market in the regions affected, Russell noted that those with insurance and financial stability will rebuild.

“The most important thing is for them to choose architects and contractors who have had experience working with insurance claims,” she said.

Prior to the wildfires, the regional inventory had started to climb slightly, but now with all of the losses, housing will again be scarce.

“We believe it’s critical that homes are built again, but that they be built better with special fire retardant materials,” Russell said. “Still it’s going to be a real insurance battle for fire coverage.”