The California Department of Real Estate formally accused the owner of a Huntington Beach rental listing service
of fraud, an action that could lead to the suspension or revocation of
the business’ license.
The administrative action, filed Friday by the department’s Los
Angeles office, was made against Diana Marie Pitts, owner of Golden
State Rentals on Beach Boulevard. The complaint cites five cases that
allegedly occurred in 2007 and 2008 in Los Angeles County before the
rental service moved to Huntington Beach. A copy was faxed to the
Register after 6 p.m. Monday.
The filing comes as a mounting number of customer complaints
that Golden State Rentals gave them flawed rental listings, placed them
on hold when they called to complain and refused to give them promised
refunds.
Police logs show also that officers have been summoned to Golden State’s offices at
least 19 times in the past 10 months to hear complaints or quell fights
between staff and customers. The Better Business Bureau has given the
company — which has moved at least five times in the past two years —
an F rating.
Golden State Rentals, which is a state-licensed rental listing service,
charges home hunters $195 in exchange for three months worth of
listings showing apartments and houses for rent. Its contract promises
to refund at least $145 if tenants can’t find a home.
Company officials couldn’t be reached to comment on the department’s
accusation. But Pitts and an employee have said that while mistakes
were made, the majority of their customers are satisfied.
In all five cases mentioned in the department’s complaint,
prospective tenants paid for rental listings, but received listings
that were unsuitable, already rented, not on the market or contained
fictitious addresses, the accusation says. Some of the property owners
told tenants that Golden State was not authorized to list their rentals.
None of the five customers received their requested refunds because
the company moved without leaving a forwarding address or phone number,
the department alleged. The accusation states:
“The conduct, acts and/or omissions of (Pitts) as
set forth above constitutes fraud or dishonest dealing and/or
negligence and is grounds to revoke or suspend (her) PRLS license.”
The accusations are similar to ones voiced recently by a handful of customers who have spoken to or e-mailed the Register.
In e-mails and interviews, Golden State officials said they were
moving last weekend because of complaints by neighboring tenants in
their Beach Boulevard building over a commotion caused when 10
customers confronted staff and demanded refunds.
E-mails sent to customers said the firm was relocating Sunday to a building next door.
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