New Lawsuit Filed to Stop Rent-Gouging Following LA Wildfires

Following two of the most destructive wildfires in California history, in which thousands of people lost their homes, tenant advocates have joined forces to file a lawsuit against six LA-based landlords and agents accused of illegally raising rents to exploit displaced residents.

Filed on February 21, 2025, the lawsuit aims to enforce compliance with California Penal Code § 396, which bans extreme price increases on housing and essential needs following state-declared emergencies. The case, based on violations of the California’s Unfair Competition Law, was brought by community-based tenant organization Strategic Actions for a Just Economy (“SAJE”), represented by the Housing Rights Center, Western Center on Law & Poverty, Legal Aid Foundation of Los Angeles, and California Center for Movement Legal Services. It is the first private action filed by legal non-profits against illegal rent gouging since the fires began.

The defendants—owners, leasing agents, and property managers—are accused of raising rents by 25% to nearly 50% in direct violation of anti-price-gouging laws, which limit rent increases to 10% following a natural disaster. The defendants were identified by a spreadsheet that tracks exploitative rent gouging, created by SAJE’s Director of Policy and Advocacy, and the Rent Brigade, a grassroots collective. The price-gouging ban remains in effect in Los Angeles County until January 7, 2026.

Before filing the lawsuit, attorneys sent 98 legal demand letters to landlords and property managers appearing to gouge rents, urging them to rescind unlawful rent increases and reset rental prices to a lawful amount by Feb. 4. The threat of legal action has already led some landlords to remove price gouged listings or lower rents to the appropriate rental listing, but many continue to violate the law.

Details: Read the complaint here.