RALEIGH, N.C. — The landlord who billed North Carolina State University students $23,000 when they moved out, mostly because she didn't like their homemade beer pong table, could face discipline and legal action from the North Carolina attorney general's office.
Both the North Carolina Department of Justice and Attorney General's Office, along with the North Carolina Real Estate Commission, opened separate investigations after WCNC Charlotte and WRAL News together exposed Lisa Eustathiou's questionable practices. NC State Student Legal Services and former renters, including some from Charlotte, have said the property owner has a history of retaining renters' security deposits. Despite that reputation, hardly anyone filed formal complaints against her with the state, until recently.
Eustathiou rents out properties near NC State, as well as the University of North Carolina at Greensboro.
FROM OCTOBER: Landlord charges NCSU students $23,000, mostly tied to their 'disgusting' homemade drinking game table
Attorney General Josh Stein said his office is now aware of eight complaints alleging Eustathiou inappropriately kept renters' security deposits and charged unreasonable fees.
"The size of the complaints are really jaw-dropping," Stein said. "A $23,000 bill for moving out, $18,000 for having a pong table, things that are just beyond the pale of what appears to be reasonable."
Eustathiou's attorney previously said, that due to one group of tenants' treatment of a house on Dixie Trail, they "were not entitled to a refund of their security/damages deposits." The landlord has also since announced she "has no present intention" of collecting any additional fees, but that alone may not resolve this issue.
Stein said his office has the authority to pursue restitution and civil penalties up to $5,000 per violation if deemed necessary.
"Our job is to make sure that everybody plays by the rules. That's why we protect consumers," Stein said. "We are in conversations with her lawyer. We're hearing back from them, their side of the story and if they either convince us that they've done right by these consumers, and they've done right by all the other consumers who've been affected, we don't necessarily have to go to court, but if we don't feel like they are doing the right thing, we will not hesitate going to court to force them to do the right thing."
In Eustathiou's formal response to Stein's office, which included a copy of a letter her attorney shared with WCNC Charlotte, she reaffirmed her commitment to waive any additional fees, but again defended her retention of security deposits.
"I do seek to give tenants some idea of the very real and substantial costs that I face as a landlord to put the properties back in the excellent condition they were delivered at the beginning of the lease terms," Eustathiou wrote to Assistant Attorney General Tanisha D. Folks. "I have records of monies I paid out, and pictures of damages, unclean properties, and more."
Eustathiou added, if she mistakenly charged any renters, she "will quickly make an appropriate adjustment."
"As a landlord, I strive to keep my properties in good condition and to be available for tenant requests," she wrote. "I and maintenance personnel are routinely available during business hours, and honestly, most often during non-business hours and holidays as well. Where needed, I do use the security deposit to bring the property to the condition it was in at initial move-in, if not already done by the tenants."
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The North Carolina Real Estate Commission is also investigating Eustathiou's practices. NCREC Legal Counsel and Director of Regulatory Affairs Janet Thoren said the office is aware of roughly 24 tenants who have experienced problems with her.
"It's a signal to us that maybe there's something more going on there and we need to take a closer look," Thoren said of NCREC's standard procedure when there's a large volume of concerns. "I always think that I've seen everything and then the next day comes and we see something different."
Thoren said the commission can generally help renters recoup security deposit trust money in some cases.
"They may be able to recover that money if it's stolen," she said.
Thoren said NCREC investigations usually target unlicensed activity. In this case, Eustathiou is a licensed real estate broker. As regulators investigate, her license and reputation hang in the balance.
To avoid these kinds of problems, regulators recommend renters research potential landlords: ask around, check their ratings, pull a background check and look for any past discipline. In addition, renters recommend people carefully review leases, so they know what they're agreeing to, what is allowed and what is not allowed. Finally, they say people should take pictures of everything when they move in and move out. Those pictures help document every little detail in the event there's a dispute. If there is a problem, they recommend filing a complaint with state regulators.
"It is important that people feel like they know where they can go and complain about a real estate transaction and a broker's conduct during a transaction," Thoren said.
Contact Nate Morabito at nmorabito@wcnc.com and follow him on Facebook, X and Instagram.
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