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Rental price hike warning after Mountain Fire – NBC Los Angeles
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Rental price hike warning after Mountain Fire – NBC Los Angeles

For more than 200 families who lost their homes in the wildfires in Ventura County, finding a temporary place to live has been challenging and, in some cases, expensive.

Despite the California Attorney General’s office warning of a possible price increase after the state of emergency was issued for the region, NBC Los Angeles heard from neighbors displaced from the burned communities who said they were being asked to pay what they believe to be exorbitant security deposits for rental units.

But Janet Sprissler, a broker and owner Rent 805, a property management company, said there is a law that prevents property owners from overcharging for security deposits.

“If a landlord has two different properties — no more than four units on those two different properties — they can’t charge more than one month,” Sprissler said. “If they’re in that exclusion, they can charge up to two months to carry a deposit.”

Sprissler added that a property owner should not ask for the first and last month’s rent in addition to the security deposit.

During a disaster like the mountain fire, bad actors will try to lure tenants, Sprissler said.

“I say the biggest scam is when someone says: “Hey, I only accept cash,” she said. “Be careful if someone tries to push you into something too soon. Sleep on it.”

Sprissler recommended working with a verifiable real estate professional with proven credentials.

It’s not just rentals. Anything from goods to services, it’s illegal to overcharge consumers after a state of emergency is declared.

“California law generally prohibits charging a price that exceeds, by more than 10 percent, the price a seller charged for an item prior to a state or local emergency declaration.”

The law applies to repairs and reconstruction, emergency cleaning and storage services, as well as hotel stays and rental housing.

Those found in violation of the state’s price-gouging laws face criminal prosecution, jail time or a $1,000 fine — in addition to possible civil lawsuits, according to the Attorney General’s Office.