News Summary
California Attorney General Rob Bonta has charged real estate agent Iman Eshaghyan for allegedly enforcing a 30% illegal rent increase at a Beverly Hills property, following the Palisades Fire. Eshaghyan, facing two misdemeanor counts, could incur significant fines and jail time if convicted. This legal action underscores the state’s commitment to combating price gouging post-disaster, encouraging affected tenants to report illegal rent hikes. The ongoing rental crisis in Los Angeles has seen severe price increases, especially in areas impacted by recent wildfires.
Beverly Hills – California Attorney General Rob Bonta has filed charges against real estate agent Iman Eshaghyan for an alleged illegal rent increase of 30% at a Beverly Hills property, in violation of state laws that prohibit price gouging following disasters. This action comes in the wake of the deadly Palisades Fire that displaced numerous residents earlier this year.
Eshaghyan, who has a notable standing in the real estate industry, is facing two misdemeanor counts for reportedly advertising, listing, and renting properties above the legal rent increase limit mandated during a state of emergency. If convicted, he could face a penalty of up to $10,000 in fines and a year in jail.
In his announcement, Attorney General Bonta emphasized the state’s commitment to combatting price gouging and ensuring that those affected by disasters are not further exploited. He urged current or prospective tenants who believe they have been subjected to illegal rent increases to report their experiences to local authorities, such as the L.A. City Attorney or the L.A. District Attorney.
Eshaghyan has not publicly commented on the charges, opting instead to have his attorney handle any communications regarding the matter. His LinkedIn profile indicates that he ranks among the top 1% of sales associates at Coldwell Banker Commercial.
The charges surfaced after Governor Gavin Newsom declared a state of emergency following the Palisades Fire, which broke out in January and led to significant property destruction. This emergency status prohibits any rent increases exceeding 10% during such catastrophic events. The affected tenants have faced considerable challenges as they seek housing in a rental market that was already strained prior to the fires.
In light of the increased rental prices in Los Angeles in the aftermath of the disaster, Attorney General Bonta has previously taken action against several other real estate agents and homeowners for engaging in similar price gouging violations in the first months of 2023. Reports indicate that rental prices in the region have surged significantly following the wildfires, with some landlords increasing rents beyond the legally permissible limits.
A recent analysis highlights that LA County rents surged by 20% post-fires, with specific neighborhoods witnessing even more drastic increases. For example, areas like Glendora saw rises of 150%, while Beverly Hills experienced rent hikes of 142%. Anecdotal accounts from displaced individuals reveal exploitative practices, including instances where renters were pressured to pay exorbitant amounts for available housing.
The state law enacted to prevent price gouging explicitly makes any rent increase above 10% during an emergency illegal. This legal framework aims to protect vulnerable tenants who may be desperate for housing in the wake of large-scale disasters. One reported case described a woman facing demands to pay $30,000 for a rental property that had been listed at $17,000, highlighting the extreme pressures tenants are under.
In response to the tightening housing market, which has further complicated recovery efforts, state leaders, including Governor Newsom and L.A. Mayor Karen Bass, are working to alleviate regulations that could expedite the construction of new housing. However, discussions surrounding federal disaster aid have raised concerns regarding potential delays in reconstruction owing to stipulations proposed by Congress.
Residents facing challenges in the rental market are encouraged to seek assistance and report grievances to the California Attorney General’s Office by visiting a dedicated website or calling their hotline. The ongoing situation underscores the urgency to address housing needs effectively and protect tenants from unprincipled rent inflation following devastating events.
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Additional Resources
- LAist: California Files Post-Fires Price Gouging Case Against Beverly Hills Landlord
- New York Times: California Fires and Rent Price Gouging
- Fortune: LA Housing Crisis and Price Gouging Laws
- Los Angeles Times: Newsom Lifts Price Caps for New Rental Homes
- Wikipedia: Price Gouging
- Google Search: California Housing Crisis
