Housing headaches: Rental agency complaints
CHICAGO (WLS) -- They were desperate for a place to call home, but say all they got were excuses. The owner of a realty group tells the ABC7 I-Team his mission is to help the homeless and tenants who would otherwise be left on the streets, if it weren't for him.
But the ABC7 I-Team found some customers who paid hundreds of dollars and say they got only housing headaches. Several agencies are now taking action.
"I feel devastated," Carlene Mighty said.
Mighty was scrambling to find a place to live in April, so she turned to My Place Apartments and the Shaw Real Estate Group, owned by Jack Shaw. The company says its goal is to place people with bankruptcies and evictions into apartments.
"I had an eviction two years ago before I lost my mom, I gave up my apartment no contest, to go move home with her because she had pancreatic cancer and I lost her March 2013," Mighty said.
Mighty paid a "processing" fee, a "profile" fee and what was to be her first month's rent, costing a total of $980.
"They say they need the money up front," Mighty said.
"I felt betrayed in a way," said Milton Callahan.
Callahan paid $750.
"Never got me an apartment, never showed me a listing of apartments," Callahan said.
Georgia Engelstad and her daughter paid $1,400.
"Why would you do that to people coming to you looking for a place to live and how you think you can get away with it!" Engelstad said.
The sign on the business window says "guaranteed approval or your money back", but contracts signed by all three customers state processing fees are non-refundable.
A larger fee that would go towards the first month's rent was refundable, only if the leasing agent couldn't find one apartment that fit into a customer's criteria.
Shaw realty says its emails to customers in our story show that they were approved for at least one unit in that "desired criteria."
But they say apartments were not in desired neighborhoods; over budget; appointments for showings fell through; or they were given last-minute notice to showings they couldn't make.
"It is nothing but emails, they are not returning calls, not helping," Mighty said.
The owner, Jack Shaw, disputes the claims. He declined a scheduled, sit down interview, so we showed up at the office.
Shaw: "It's not that many consumers. We have 2 percent people complain. Ok and all of the complaints we have fulfilled our contract agreement."
ABC7's Jason Knowles: "So you have fulfilled your contract agreement but consumers at the end of the day don't have an apartment."
Shaw: "They have they don't want to go to see it."
The I-Team uncovered more. The Illinois attorney general has an "active investigation" due to 13 recent complaints and the Illinois Department of Financial and Professional Regulation has pending legal action because of a complaint. The BBB gave the company an "F" because of 63 complaints in the last three years, but Shaw gave the BBB a plan of action to address the complaints.
"Our people are difficult people to deal with so they know how to go through the different channels. If we did our job we should get paid. We do everything right but they want their money back then we have no money to pay our employees, employee has to be paid," Shaw said.
Shaw also told us about his 4.1 star Google review and showed us satisfied customers and testimonials on his walls. Mighty won't be smiling on this wall, but she did get her $980 back.
"Without you going to cover this story I would not be able to get my 100 percent refund," said Mighty.
Shaw offered the remaining customers in our story a 50 percent refund, but they refused.
The city's Business Affairs and Consumer Protection unit now says it's investigating those BBB complaints.
There are leasing agents who don't charge upfront fees and work off commission. Even with a bankruptcy or an eviction, you can directly ask landlords to work with you.
Two of Shaw's "satisfied" customers called, but they didn't want to talk on camera.
BBB tips for renters:
-Decide on your needs and priorities in advance of your apartment search. Be clear on what you'd like in terms of your budget, desired location, parking and other amenities.
-Don't base your choice completely on price. If a price seems exceptionally low then there may be a reason.
-Be clear on what is included with your rent. Are any of the utilities extra?
-Read the lease carefully before signing. Make sure any changes are included in writing.
-If you own a vehicle, check on parking.
-When using an apartment locating service check the place's rating for free on www.bbb.org/chicago.
REPORT: My Place Apartments
This is the F rated-report which shows 63 complaints within that past 3 years, 10 within the last 12 months:
The following pattern of complaints appears in the report:
A review of consumer complaints filed with the BBB of Chicago & Northern Illinois against My Place Apartments delineates a pattern of consumer allegations. In the complaints, consumers allege they have not been provided apartment listings that match the housing requirements they had shared when initiating service with the business. Consumers also claim that the business collects the first month's rent and security deposit for these apartments prior to providing consumers with any information regarding the units. Moreover, consumers allege that the business has not refunded these fees when they have chosen not to sign leases for the apartments that the business had showed them, which did not suit their needs. On October 8, 2014, My Place Apartments informed the BBB of the following procedures they have in place:The company actively works with their landlords to ensure that the landlords accept the company's clients. - See more at: http://www.bbb.org/chicago/business-reviews/apartment-finding-and-rental-service/my-place-apartments-in-chicago-il-88377155#sthash.CU14phE1.dpuf
