When the report brought up sex, he replied: "It's up to you, but I'd take you out for meal and pay."
"Actually, it's gone," said Steve. "I got someone for it. I had a spare room, just got divorced and was lonely and needed company. Just a kiss and cuddle."
When formally approached by a reporter, he denied knowing when, or where, the advert was placed.
"I was just lonely," he said, before changing his story: "At the end of the day, no one rang and that was the end of it."
Another advert posted on Craigslist for a property in Walsall offered a "free room in 2-bed flat for the right lady".
It said: 'I work in London and travel a lot. I'm hardly ever there so most of the time you will have place to yourself.
"In return I expect you will keep the place clean and tidy and give me 'hugs and kisses'. Maybe once or twice a week. I am 30-year-old man.
"Looking for under 35 years flatmate. This is genuine offer."
Another post on the same site announced: "Free rent paid for room or flat in return for sexual favours."
The advertiser, who was "seeking ladies", added a map showing Bromford Lane in Hodge Hill.
A Stourbridge advert ran under the title "Rent-free room ladies only", adding: "Hi, I have spare room available in exchange for sexual favours."
Craiglist promptly removed the offending posts after being approached by a reporter from the Sunday Mercury.
One landlord approached by the BBC could see nothing wrong with such sordid transactions and denied taking advantage of women.
"Everyone goes into it with their eyes wide open," he said. "I am the last type of person who'd like to take advantage.
"Both sides have something the other person wants. I see it as a win-win situation."