Following the wildfires that broke out on January 7 in the Palisades and Altadena, Governor Newsom declared a state of emergency, triggering rent gouging protections in Los Angeles County under Penal Code 396. These measures are designed to prevent landlords from exploiting tenants during a crisis by limiting rent rates and increases.  They remain in effect until January 7, 2026. 

If you believe the rental price of your unit violates rent gouging protections, you have the right to take action. Even if you have already signed a lease agreement for an apartment with an illegal rental rate, it is not too late. You may be owed restitution or have other relief.

Rent Gouging Protections Under the Law

California Penal Code Section 396 applies to all rental housing, including single-family homes, apartments, condominiums, and short-term rentals. The penalties for rent gouging may include fines of up to $10,000 per violation, up to one year in jail, and exposure to civil liability for unfair or unlawful business practices. In the City of Los Angeles, landlords who violate the law against rent gouging may be liable for damages (such as, the amount of overpaid rent) and a civil penalty of up to $30,000. (Los Angeles Municipal Code section 47.12.)

Application of the law to different situations: 

Rent Increases: Landlords may not increase rent by more than 10% from the most recent price within a year before the start of the emergency (January 7, 2024- Jan 7, 2025).

Newly Listed or Relisted Rentals: For new listings - which means units that were not rented or advertised within one year before January 7, 2025 - landlords may not charge more than 160% of the Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD). The applicable FMR for your ZIP code can be found on the HUD website. Search for HUD Fair Market Rent, input State, County, then search for your zip code. 

Furnished Rentals: If a landlord adds furniture to a previously unfurnished unit, they may increase rent by up to an additional 5% beyond the otherwise allowed limit, but no more.