Landlord Held Accountable for Unlawful Security Deposit Practices

In a groundbreaking investigation, ABC11 Troubleshooter uncovered a pattern of unethical behavior by a landlord near North Carolina State University. The landlord, Evagelia Eustathiou, also known as Lisa, was accused of withholding thousands of dollars in security deposits from students and other tenants. After a thorough investigation, the North Carolina Attorney General's Office stepped in, leading to a consent judgment that required the landlord to repay over $25,000 in security deposits and adhere to stricter regulations moving forward.

Exposing a Troubling Trend of Tenant Exploitation

Tenant Complaints Spark Investigation

The investigation began when several former tenants of Eustathiou reached out to ABC11 Troubleshooter Diane Wilson, alleging that the landlord had kept their security deposits without justification. Deborah Mitchell, a parent of one of the former renters, expressed her relief at the resolution, stating, "It's not just for my daughter and her roommates, but it's everyone going forward. This is bigger than I think I ever thought about in the original part; it's a lot more and I'm just thrilled."Samantha Mitchell, Deborah's daughter, recounted her experience, saying, "I had texted her asking when we'll see our deposit. After 30 days, we got a letter in the mail with all the charges," which totaled more than $5,800. Other renters who reached out to ABC11 showed charges of more than $20,000, further highlighting the scale of the issue.

The Attorney General's Intervention

In response to the growing number of complaints, the North Carolina Attorney General's Office launched an investigation into Eustathiou's practices. The investigation culminated in a consent judgment, where the landlord agreed to repay more than $25,000 in security deposits to former tenants.While the landlord and her company denied all allegations of violating state laws, they agreed to the consent judgment to "resolve this controversy without further proceedings." This settlement marked a significant victory for the affected tenants, who had been fighting to reclaim their rightful security deposits.

Securing Refunds and Protecting Future Tenants

The consent judgment not only required the landlord to repay the security deposits but also imposed stricter regulations on her moving forward. The agreement stipulated that the landlord must refrain from charging against security deposits for normal wear and tear, and she is prohibited from imposing unlawful interest or late fees. Additionally, the landlord must maintain security deposits in a trust account, ensuring greater transparency and accountability.For Samantha Mitchell and her roommates, the return of their $800 security deposit was a significant relief. Samantha expressed her gratitude, saying, "Getting the $800 back, that was a student loan payment for me. So that was that was really helpful to get that back." Her roommate, Jenna Stamatov, echoed this sentiment, stating, "I'm so happy, so exciting."The resolution of this case not only provided justice for the affected tenants but also set a precedent for protecting future students and renters in the area. Samantha Mitchell acknowledged the broader impact, saying, "I'm really appreciative of my mom for pushing us to fight this and for reaching out to you, and like really giving us a voice, because without her doing that, not only would we not have our deposits back, but people, previous tenants. And now college students in the future for years on end will not have to deal with this and will not be getting their deposits taken away for no reason."The successful outcome of this investigation serves as a testament to the power of persistence and the importance of holding landlords accountable for their actions. By shining a light on this issue, the ABC11 Troubleshooter investigation has paved the way for greater transparency and fairness in the rental market, ensuring that students and other tenants are not exploited by unscrupulous landlords.