California DRE Urges Compassion and Warns Against Exploiting Wildfire Victims with Rental Price Gouging


Okay, here’s a detailed article based on the California Department of Real Estate’s (DRE) warning about rental price gouging for wildfire victims, written in a gentle and informative tone:

California DRE Urges Compassion and Warns Against Exploiting Wildfire Victims with Rental Price Gouging

In the wake of devastating wildfires that have impacted communities across California, the California Department of Real Estate (DRE) has issued a strong warning against rental price gouging, reminding landlords and property managers of their ethical and legal obligations. The press release, dated August 7, 2018, underscores the importance of supporting those displaced by these tragedies and cautions against exploiting their vulnerable situation.

A Time for Empathy and Support

Wildfires can be incredibly disruptive and emotionally distressing events. Families often lose their homes, possessions, and a sense of security. Finding temporary or permanent housing becomes an immediate and critical need during these times. The DRE’s announcement emphasizes that this is a moment for compassion and community support, not an opportunity to profit from others’ misfortune.

What is Rental Price Gouging?

Price gouging generally refers to the practice of significantly increasing the price of essential goods or services, like rental housing, during or after a declared state of emergency. These emergencies can include natural disasters like wildfires, earthquakes, or floods. The goal is to take advantage of increased demand or limited supply, unfairly impacting those who are already facing hardship.

The Law and Your Rights

California law, particularly Penal Code Section 396, prohibits price gouging in many instances. Under this law, it is generally illegal to increase the price of many goods and services by more than 10% after a state of emergency has been declared. This restriction typically applies for 30 days after the declaration, but can be extended. While the initial release was in 2018, it’s important to remember that these laws are still in effect today, and would apply to any new state of emergency declared due to wildfires or other disasters.

Specifically related to housing, this can mean that landlords are restricted in how much they can raise rents in affected areas following a wildfire or similar emergency. There may be some exceptions, such as if the landlord can demonstrate that the increase is directly attributable to increased costs in providing the housing (like significant repair costs due to the fire itself).

What the DRE Wants You to Know

The DRE plays a crucial role in overseeing real estate licensees in California. Their warning serves as a reminder to real estate professionals that they have a responsibility to act ethically and in accordance with the law. This includes not participating in or facilitating rental price gouging in any way.

The DRE encourages anyone who believes they have been a victim of rental price gouging to take action. If you think you’ve been overcharged in rent following a declared emergency, gather your documentation (lease agreements, receipts, advertisements for the property, etc.) and consider contacting the following:

  • Your Local District Attorney’s Office: This is the primary agency responsible for investigating and prosecuting price gouging violations.
  • The California Attorney General’s Office: You can file a complaint with the Attorney General regarding unfair business practices.
  • The California Department of Real Estate (DRE): If you believe a real estate licensee is involved, you can file a complaint with the DRE. They can investigate and take disciplinary action against licensees who violate the law or ethical standards.

Preventing Price Gouging and Finding Assistance

Beyond legal recourse, there are also steps you can take to protect yourself and find assistance after a wildfire:

  • Document Everything: Keep copies of all rental agreements, receipts, and communication with landlords or property managers.
  • Be Aware of Your Rights: Familiarize yourself with California’s price gouging laws.
  • Seek Assistance from Relief Organizations: Many organizations, such as the Red Cross, FEMA, and local community groups, provide assistance to wildfire victims. They can help with temporary housing, food, and other essential needs.

A Call to Action

The DRE’s warning serves as a vital reminder that during times of crisis, compassion and ethical conduct are paramount. By understanding your rights, reporting suspected price gouging, and supporting those in need, we can help ensure that wildfire victims receive the assistance they deserve and are not further victimized. Let’s strive to create a community where everyone is treated with fairness and respect, especially during times of great difficulty.

Important Note: While this information is based on the 2018 DRE press release and general California law, it is essential to consult with legal professionals for specific advice related to your individual circumstances. Laws and regulations can change, so staying informed is crucial.


DRE Warns Against Rental Price Gouging of Wildfire Victims (8/7/2018)


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