Prospective tenants are displeased with
City Home Rentals for taking their money and not delivering agreed upon services. The La Puente, California operator of a Pre-paid Rental Listing Service (PRLS) is accused of taking $200 from individuals looking for rental properties and delivering bogus
listings. Business Consumer Alliance (BCA), who is familiar with various
PRLS scams, has received
complaints claiming City Home Rentals is providing lists that are useless. Consumers claim the listed properties are unavailable, don’t meet their criteria, or aren’t as represented. In some cases, the property owners don’t even know who City Home Rentals
is or that their property is listed.
When confronted by disappointed consumers demanding refunds for unfulfilled services, the Company often ignores the request. Some consumers have resorted to filing cases in small claims court in order to receive their money back. City Home Rentals currently
has an F rating with BCA and has failed to respond to complaints.
City Home Rentals is listed as a
licensed PRLS with the California Bureau of Real Estate (BRE) and is subject to the guidelines set forth by the BRE for these types of businesses. Under California law, consumers are entitled to a full refund if the PRLS fails to provide them with at least
three “available” rental listings meeting all property specifications listed in the contract within five days of signing the contract. The law also has refund provisions if the PRLS doesn’t locate a rental or the consumer finds a rental on their own within
the term of the contract. Consumers looking to do business with a PRLS should familiarize themselves with their rights before signing any contract or paying any money for rental listings.
Some warning signs to look out for include:
- The PRLS company only accepts cash—credit cards allow for charge disputes.
- The company guarantees the prospective tenant will get a rental in his or her price range and desired location.
- The list of rentals is handwritten and not computer-generated.
- The company does not provide property management or owner contact information or asks the consumer to contact them instead of the property manager or owner if there is interest. Typically, a PRLS company will provide you with rental property addresses and
property manager or owner information so that direct contact can be made by the client.
- Company representatives use only first names. To avoid detection of law enforcement or from being sued, last names may be omitted and first names are often changed.
- The company has only been in business a few months. Some PRLS companies open, quickly close, and move around a lot to avoid customers seeking refunds.
Before signing on with a PRLS, we urge you to heed these tips:
1. If you see a property listed, visit the location on your own. Check to see if the property looks like it is on the market. Go to the local courthouse to see who owns the property and contact the individual to see if they
are renting their home.
2. Check for licensing. In California, the BRE has a list of active and
unlicensed PRLS companies.
3. Obtain a report from BCA to check the company’s history and any complaints or reviews that consumers have left regarding the business.
4. Read the contract carefully and obtain clarification regarding unclear terms or any conflicting information.
5. Do not pay in cash or via money order for the PRLS list.
6. Look into alternatives such as working with a realtor or
property management company to locate a suitable rental.
For more information read BCA’s Resource Guide,
“Your Rights With Prepaid Rental Listing Services”.
About Business Consumer Alliance:
Business Consumer Alliance (BCA) is a non-profit company that started in 1936. The broad purpose of BCA is to promote business self-regulation. BCA's mission is achieved by assisting consumers in resolving complaints with businesses and using that complaint
information, along with other relevant information such as customer reviews, to forecast business reliability. With community support, BCA can identify trustworthy and ethical businesses and warn the public to avoid unscrupulous businesses whose purpose is
to defraud the marketplace. BCA also helps businesses promote themselves by providing services and tools to protect their business and reach out to their customers. BCA obtains its funding from member businesses who support the mission and purpose of the organization
and who agree to abide by high standards of ethical business practices.