In case scammers preying on people donating to wildfire relief funds weren’t bad enough, landlords in Los Angeles are reportedly illegally price gouging their properties for profit in the wake of the natural disaster.
Since the city has faced its most destructive wildfires ever, thousands of people have been displaced from their homes, and 10,000 hectares of land have been destroyed.
The parts of the city that aren’t being evacuated were already extortionately expensive, with a median rent in the city of about $2,800 USD ($4.5K AUD) per month.
However it now seems LA landlords are profiteering off the natural disaster by driving up the prices, according to celebrity property mogul Jason Oppenheim.
“We’re having landlords taking advantage of the situation,” he told the BBC.
When the wildfires first started, the Selling Sunset star advertised that his real estate agency would provide free representation to anyone trying to find a place to rent until their home is rebuilt.
But once he started offering the help, Oppenheim says he quickly discovered landlords were using the high demand to raise the prices.
“Since we offered our services for free we have received dozens and dozens of calls from people who have lost their homes in the fires,” he said.
“It’s really difficult because there are thousands of people who are displaced, but we’re having landlords taking advantage of the situation.”
Oppenheim then recalled one instance where he sent a client to a rental with an asking price of $13K a month.
“He offered $20,000 a month and he offered to pay six months upfront and the landlord said ‘I want $23,000 a month,'” Oppenheim said.
The property mogul then went on to say that though there are regulations in place to prevent these profiteering practices, they were being “ignored”.
“There are price gouging laws in California, they’re just being ignored right now, and this isn’t the time to be taking advantage of situations,” Oppenheim said.
He then went on to assert that “it is illegal to take advantage in a natural disaster”.
The LA wildfires are expected to be the most destructive in the city’s history, with a confirmed total of 25 fatalities.
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