Leaky roof? Mold bloom? Rathbun tenant feels out of luck

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Video by kgun9.com

Leaky roof? Mold bloom? Rathbun tenant feels out of luck

CREATED Sep 10, 2012

Reporter: Craig Smith

TUCSON (KGUN9-TV) - Your house has serious problems that endanger your health---and your property manager? Nowhere to be found.
That's the situation one woman finds herself in with Rathbun Realty---a company claiming one-point-eight million in missing assets---and a company under investigation by state officials.

The tarps and ropes on roof are an attempt to fix what Kathleen Hogue says Rathbun Realty hasn't: roof leaks serious enough to soak the wall, and cause a mold bloom.  Mold's bad for anyone, but especially bad for her.

She says, "It certainly aggravates my breathing problems.  I have a nebulizer machine that I'm having to use since, I had to start using it this morning because I started coughing real bad and I can't afford to be in the hospital."
She says Rathbun's failed to fix plenty of other trouble.  She paid a lot of money on a lease before she heard the management company was claiming a worker embezzled 1.8 million dollars.
Now she says the company's not answering phone calls.  When she went in person the sign was removed and the window covered.
We found the front was shut down, but the back was still pretty active.

As one man headed towards the back door, KGUN9 reporter Craig Smith asked: "What happens to the tenants and landlords now?" 

Man: "No comment." 

Smith: "Could you identify yourself sir?" 

Man: "No comment."
People peeked out the window, but no one picked up the phone.

Overall, we got three no comments from the man who refused to identify himself, two phone hang-ups, and no answer at the door."

Later, anonymous current and former Rathbun workers claimed the company feels the cease and desist order from the Arizona Department of Real Estate prevents them from making any statements.

Dave Apgar hired Rathbun in December to manage his rent house.

He says, "Their communication is bad at best and I'm getting the same information from my tenant."

Craig Smith: "And this is before they went into crisis mode?"

Apgar: "Oh yeah, yeah."
Apgar says a variety of troubles with Rathbun Realty started almost as soon as he hired them.

Carig Smith asked him: "Is it clear that you're gonna get a payment when the rent is due?" 

Apgar: "No it isn't. I've talked to my tenant; they sent a check the 23rd or 25th of August and that check, and maybe a previous check is owed to me, plus Rathbun has 1650 dollars of my tenant's deposit money."

The company's sending letters to landlords saying it's lined up another property company to take over their accounts but it's up to the landlords if they want to sign that agreement.
That same letter says the company will likely file for bankruptcy and liquidate assets as part of the process of trying to pay back creditors like landlords.