A real estate agent in La Cañada Flintridge is facing legal action for allegedly inflating rental prices after the recent wildfires in Los Angeles. California Attorney General Rob Bonta announced that Mike Kobeissi is accused of raising the rent on a home by 38% after a displaced couple applied for it.
State law prohibits rental increases over 10% following a natural disaster. Kobeissi, however, denies wrongdoing, claiming the price hike was due to the home’s location within a top school district according to the Los Angeles Times. He also noted that offers exceeding his final price were rejected in favor of fire victims.
The case is the first price-gouging charge related to the January wildfires, which left over 11,000 families searching for new housing. Reports suggest widespread rental price hikes, with some listings increasing by 60% or more.
Bonta has launched multiple investigations and issued warnings to landlords, emphasizing that price gouging during emergencies will not be tolerated. Violators could face jail time and significant fines.
With California’s rental market already stretched thin, the allegations highlight ongoing concerns about fair housing access in the wake of natural disasters.