Blog

California’s anti-price gouging law seeks to protect tenants from price gouging during declared emergencies at the federal, state, county, and municipal level.   Promulgated at Penal Code section 396, the law automatically goes into effect for thirty (30) days, unless extended, after an emergency declaration, largely limiting price increases for materials, goods, services, including residential rental listings, and rent.  California Penal Code § 396(f).  Recognizing that emergencies may create rental conditions unfairly favorable to property owners, the California Legislature seeks to protect tenants from any unscrupulous landlord that dramatically increases rent amid an emergency as supply may be constrained or demand increased.

California Penal Code achieves this goal by limiting rent increases above ten percent (10%) for thirty (30) days, unless further extended, following the proclamation of a state of emergency declared by the President of the United States, or the Governor of California, or upon the declaration of a local emergency by an official, board, or other governing body.  California Penal Code § 396(e).  This limitation on rent increases also applies to residential rental listings and verbal or written offers to rent a unit made to a prospective tenant privately.  Id.  (Yes, rental listings cannot be increased for thirty (30) days after a declared state of emergency.)  However, the law permits a greater rental price where the property owner proves that the increase is directly attributable to repair costs or beyond-normal maintenance amortized over the rental term necessitating an greater increase, or that the tenant agreed to the increase before the state of emergency declaration.  Id.  Otherwise, they must adhere to Penal Code section 396’s limitation on rent increases.

On October 14, 2025, the Los Angeles County Board of Supervisors declared a state of emergency due to the federal immigration raids.  Supervisors cited the fear and disruption caused by the raids which has left some residents afraid to go to work and entire families becoming, "destitute," should the federal government remove their breadwinner.  This means that Los Angeles County landlords may not increase rent, in most cases, above ten percent (10%) until, at least November 13, 2025.  Further, all rental listings must abide by this limitation until that date.   And, offers to let a residential rental unit are similarly restricted.  Any Los Angeles County tenant that receives a rent increase above ten percent (10%) before November 13, 2025 may initially regard the proposed rent increase as null and void.