Jason Oppenheim, star of Netflix’s Selling Sunset, has accused Los Angeles landlords of illegally price gouging rental rates amid the city’s devastating fires. ... Oppenheim shared the example of a client who went to view a rental property that was initially asking for US$13,000 a month. He said his client offered US$20,000 a month and six months of rent paid upfront, but the landlord responded by asking for US$23,000 a month.
While that sounds pretty high-end (Microsoft Copilot tells me the average rent in LA is about $2,800 per month), accusations of "price-gouging" tend to occur at all price levels.
So ... instead of risking accusations of "price-gouging," why not just hold lease auctions?
For example, the landlord above might set a reserve price of $13k per month with security deposit, then allow pre-qualified bidders (e.g. those who pass a credit check and present the security deposit and first/last month's reserve price rent as refundable -- if they don't win the auction -- "earnest money") to compete for the lease.
Hold an auction, and the winner gets that one-year lease ... maybe even with first and last month's rent, as pre-paid, set at the reserve price?
The landlord gets at least his reserve price, and whoever can afford the lease, and wants it most, gets it.
Yes, there would still be complaints of high prices, but it would be the renters, not the landlord, deciding those prices. No "gouging" involved.
Of course, there's a good chance that something as sensible as that is illegal, especially in California.
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