Los Angeles Landlords Are Illegally Inflating Rents, Says Selling Sunset Star
Landlords illegally raised prices because of the Los Angeles wildfires, says Selling Sunset star Jason Oppenheim.
The Los Angeles real estate mogul, owner of the luxury real estate brokerage firm at the center of the Netflix reality show, said a client was charged thousands of dollars above the original price asked to rent a house – despite California’s anti-“price gouging” laws.
It comes as Los Angeles officials warned that anyone caught “profiting” from the disaster by defrauding or robbing wildfire victims would be prosecuted.
Thousands of people have lost their homes in Los Angeles, and displaced victims say they face exorbitant rental prices and hotel fees.
Oppenheim said his company offers its services for free and has received dozens of calls from people who have lost their homes.
Speaking on BBC One’s Sunday show with Laura Kuenssberg, he described sending a client to view a property where the landlord was previously charging $13,000 a month in rent.
“(My client) offered $20,000 a month and he offered to pay six months in advance and the landlord said ‘I want $23,000,'” he said.
“There are price gouging laws in California, they are simply being ignored right now, and now is not the time to take advantage of the situation.”
The 47-year-old added that the disaster had been “emotional for everyone”.
He said: “Everyone has tears in their eyes all day, literally from the smoke, but also just because it’s moving to see people struggling like this.”
California authorities have warned businesses against illegally raising the price of items more than 10% above their pre-disaster cost.
On Saturday, California Attorney General Rob Bonta also said he had seen landlords illegally raising prices.
“You can’t do it. It’s a crime punishable by up to a year in prison and fines,” he said.
“It’s California law (and) it’s in place to protect those who suffer tragedy.”
“Lots of scams”
Price gouging is just one example of the criminality that has emerged amid the disaster, which has killed at least 16 people.
Los Angeles County Sheriff Robert Luna warned those planning to commit a burglary or “white-collar crime or fraud” that police and prosecutors were watching.
For his part, Los Angeles Police Chief Jim McDonnell said that “people will go to any lengths to be able to do whatever they want to exploit the victims of this tragedy.”
Mr McDonnell said there were “a lot of scams” and warned those wanting to help to donate “with caution”.
He encouraged people to conduct careful research to find reputable organizations, recommending using 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, Mr. Luna, the county sheriff, said there have been about 29 arrests so far amid the fires, including a man posing as a firefighter to burglarize a home.
He said police were “eager to pursue” anyone found to have “taken advantage of our residents during this very difficult time” and specifically warned against “white collar” scams.
On Saturday, the Los Angeles Police Department said the number of arrests for looting was “steadily increasing.”
Yet despite the misdeeds of some, Los Angeles Mayor Karen Bass said more than 13,000 people had donated more than $6m (£4.9m) to the Fire Recovery Fund of the Community Foundation of California since the fires started on Tuesday.