The California Penal Code, provides that if a state of emergency has been declared, those persons who rent or lease, or offer to rent or lease, rental housing for less than one year at a rate more than 10 percent above the rate immediately prior to the onset of the state of emergency, may be committing a misdemeanor punishable by imprisonment or a fine of not more than $10,000, or both. Actions can also be brought under section 17200 of the California Business and Professions Code, which has cumulative penalties.

Best Practice: Be sure you know the price restrictions when you offer to rent or lease a residential property when a state of emergency has been declared.

Published by the Norco College Real Estate Program with the support of the Real Estate Programs of Saddleback College and Mount San Antonio College and the California Community College Real Estate Education Center.

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