Owner of Apartment Complex Bankrupt: New Managers Take Over
PORTSMOUTH, Va. - McKinley, a new and well-respected property management company, has taken over at two problem-plagued apartment complexes in Portsmouth and Chesapeake after the former owners filed for bankruptcy.
PORTSMOUTH, Va. - A new and well-respected property management company has taken over at two problem-plagued apartment complexes in Portsmouth and Chesapeake after the former owners filed for bankruptcy.
WAVY.com investigated the situation after getting calls and emails from frustrated tennants of Chelsea Pointe in Portsmouth and Vicaro in Chesapeake complaining of prolonged plumbing problems and apartment managers who were doing nothing to help them.
"We have nobody to call, nobody," said tennant Tracey Thomas. She told WAVY.com on Tuesday that many tennants have been suffering with different maintenance problems like backed-up plumbing and sewage-flooded apartments for weeks, even months.
"The maintenance man proceeded to explain there's no money, the company folded, he hadn't been paid in five weeks," said Priscilla Johnson, another tennat.
Now, things have taken a dramatic turn.
Contractors of all sorts are now out at the apartment complexes, working to clean and repair all those problems.
WAVY.com found out a federal judge has ordered a new management company, Mckinley out of Michigan, to come in and take over while the case moves through bankcruptcy court.
The new managers, already on site, have posted notices telling tennants they'll be doing "unit by unit inspections" at both complexes to find out exactly what problems need fixing.
Breathing a sigh of relief, tennant Yancey Thomas told WAVY.com Wednesday afternoon, "I feel good because something is finally being done. They're quick to resolve whatever needs to be fixed."
During the course of our investigation WAVY.com discovered the company that owns the two apartment complexes, The Bethany Group based in California, recently went bankrupt, but had not told any of the tennants.
We found out The Bethany Group had stopped paying vendors, like plumbers, landscapers and carpet cleaners almost a year ago, but residents were still required by law to keep paying their rent.
Mckinley management says they will work very hard to get the apartments in tip-top shape for the families, quickly.
