How LA's Price Gouging Laws Affect Property Owners: A Broker's Firsthand Take

In the aftermath of the LA wildfires, my family and I were lucky—we found a place to stay and had the means to pay for it. But many Angelenos weren’t as fortunate. As a real estate broker helping owners navigate emergency housing policies, I saw how unclear and intimidating California’s price gouging laws can be—especially during an emergency.

This isn’t legal advice—just what I experienced as someone in the thick of it. Below are key resources, what I learned, and what every property owner in LA should know.

What the Law Says

• California Penal Code §396 – The state’s primary law restricting price increases during emergencies
• HUD Fair Market Rent Tool – Used to determine maximum legal rents during emergency declarations
• LA County Price Gouging FAQ – Local enforcement and guidance for landlords
• NotifyLA Emergency Alerts – Stay informed during wildfire events and other crises

Where It Gets Confusing

California’s price gouging cap currently limits rent to 160% of the HUD Fair Market Rent (FMR) for your area—regardless of what you previously charged. This number is often arbitrary and doesn't reflect upgrades, location premiums, or short-term rental value. It also doesn’t account for furnishings, parking, or utilities unless clearly justified.

As of now, these protections are set to expire on July 1, 2025, but California has a history of extending these deadlines with little notice. Landlords should keep a close eye on state announcements in late June to avoid sudden noncompliance.

Lessons for LA Landlords

Price caps are meant to protect renters from exploitation in a crisis, but the lack of clarity often punishes responsible property owners instead. With inconsistent enforcement and confusing calculations, it’s critical to know your obligations—and your options.

We Can Help

At Keybox Properties, we help Los Angeles landlords stay compliant while protecting the value of their investments—even in uncertain times.

Get a Proposal for Leasing & Management

Final Thought

Emergency housing laws are necessary—but they must also be clear, fair, and flexible. Until then, the best protection for landlords is preparation, documentation, and working with someone who understands the terrain.

Need help renting your property within legal limits after a disaster? Let’s talk.