Some Rental Agencies Listing Homes Not For Rent

LOS ANGELES - Many Americans are losing their homes to foreclosure and turning to services that offer rental property listings for a fee, but are they legitimate? David Goldstein investigates.

"Well I mean, you know… we had a home, we had two cars, we had savings, a 401K," Rhett Davis said.

Davis had it all, but like many Americans, lost his job and is now losing his home to foreclosure.

"We don't want to go, but, I mean, we're forced out. We have no choice, so at this point and time, we have to rent," Davis said.

Davis went on Craigslist looking for a rental home and answered an ad for a house in Hacienda Heights for $1,200 a month.

David Goldstein: "You thought you were calling up somebody that owned their house putting it up for $1,200?"

Davis: "Right… right."

But instead it was a company called Platinum Consulting. For $180, they said they could provide a list of properties for rent each week. So he paid the fee.

"They told us that they are a service that helps people to get into rental properties. You pay for their service and these people that are renting these properties pay them for the service and it's like they match you," Davis said.

The Hacienda Heights home Davis was interested was advertised on the list from Platinum. But when he asked to see it, they then told him it was no longer available. But the homeowner told us a different story.

"No, we've never heard of Platinum Consulting before," Sherri Miceli said.

Miceli said not only had she never heard of Platinum, but the house was never for rent.

"We've been here ten years. We've never rented the house, nor do we plan on it anytime soon," Miceli said.

We sent an undercover producer with a hidden camera inside Platinum's office in Rosemead.

"So how does this all work," our undercover producer asked.

"Basically we are a licensed credit consultant. We work with property managements, realtors, investors, homeowners, things like that. They send us properties and ask us to find tenants for them. OK," a man, who said his name was Alex, explained.

Alex claimed they have had plenty of satisfied customers.

"We have a 95 percent success rate right now," he said.

But not according to the Better Business Bureau. They have received over 500 inquires and a dozen formal complaints about Platinum.

"They're not licensed to do what they're doing. It doesn't look like the rentals are legitimate. They don't have the relationships that they say they do with the landlords," a representative with the BBB said.

We wanted to find out what was going on so we visited Platinum Consulting.

"You have to leave," an unidentified woman who works at Platinum Consulting said. But they wanted us out.

David Goldstein: "What do I have to leave for?"

Platinum Consulting Representative: "You have to leave because this is private property. You have to leave."

David Goldstein: "People say they've gotten lists from you and property owners say their places weren't even for rent."

Platinum Consulting Representative: "You want me to call security?"

David Goldstein: "What kind of license do you have ma'am?"

Platinum Consulting Representative: "You have to leave. You have to leave."

Phillip Ihde with the California Department of Real Estate says Platinum needs to be licensed with his department as a prepaid listing service, but they're not. He says he has seen these types of rental companies again and again.

"That's a typical scheme these people use, as they will find very nice rental properties that would typically be hard to find or cost much more than they are being advertised for by the company and that's what draws consumers into them to pay their rental listing fee," Ihde said.

The low rental price is what drew Rhett Davis in.

"I think they're taking advantage of people that are in desperate need for a place to live," Davis said.

But the people at Platinum did not want to talk about it.

David Goldstein: "Why are you locking the door? What are you hiding?"