Landlords allege property management company failed to hand over nearly $400K in rent money, damage deposits

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A New Brunswick property management company is facing several lawsuits claiming it failed to hand over nearly $400,000 in rent money to landlords. 

In December, Canadian real estate investment firm Sunset Main Street Investments, and its affiliates 742921 N.B. Inc., Sunset King Street Investments II LP., Calco Realty Holdings Inc., Sunset Drive Investments GP INC., and 7340411 N.B. Inc., filed a lawsuit against K2 Property Management’s parent company Keeza Realty Inc., alleging the company did not hand over $354,514 in rents collected from New Brunswick tenants. 

Keeza was launched as an umbrella company that operates several property management services, including K2, which managed buildings in New Brunswick and Nova Scotia for property owners. Other businesses run under the Keeza umbrella include a pest control company, a roofing company, and a plumbing and electric company.

In the court filings, Keeza’s directors Kevin Everill, who is also K2’s founder and president, and Nathalie Everill are accused of fraudulently taking money from Keeza for their own benefit. 

Brunswick News requested comment from Sunset Investments but did not receive a response by press time. 

Three other property owners have filed similar actions accusing K2 of failing to remit rent money. 

In January, Sean Daniel Kearney, of Ontario, filed a court action against K2 and Kevin Everill claiming the company was contracted to collect a $1,500 monthly rent from Kearney’s tenant in New Brunswick and send $1,396.50 of that rent to Kearney.

Kearney alleges that payments were severely late in September and October 2023 and no money was received for November and December 2023.

Speaking with Brunswick News on Tuesday, Kearney said he owns one property in New Brunswick and was renting it out until he moves in. He said not receiving the rent money put him “into a really tight spot.” 

Kearney said K2 sent an email to landlords in March letting them know the company was ceasing operations and that they’d pay back property owners. He said he responded by asking when he’d see the money but it’s been “radio silence” since then. 

In February, Ann Monich, also of Ontario, filed a claim through the court stating that K2 was under contract to collect rent from her New Brunswick tenants on her behalf and deposit the money into her bank account. Monich claims that in November 2023, the company collected the rent but did not deposit the $12,125. 

She told Brunswick News on Tuesday she also received an email from K2 in March that said they would close at the end of April. She said she is waiting until the beginning of May for payment, and if it is not received she will continue with her case against K2. 

“I’m a small-time building owner … I rely on that rent to cover expenses,” Monich said. 

“Not giving that money put me into a personal financial spiral because of the expenses I’ve had to pay out of my pocket.” 

A lawsuit filed in March by numbered company 2791992 Ontario Inc. against Everill and K2 claims the company was contracted to collect and remit rent from tenants at a property in Beresford, outside Bathurst, but stopped doing so in September 2023. 

The company alleges in its lawsuit that $9,125 has not been handed over and $7,175 in damage deposits that were collected were not given to the province’s Tenant and Landlord Relations Office as required in New Brunswick.

Brunswick News contacted the law office representing the property owner but did not receive a response by press time. 

None of the allegations have been proven in court.

K2 has yet to file a statement of defence. 

A sign placed on K2’s New Brunswick office in Moncton, which is also listed as Keeza’s office address, states the office is permanently closed. A contact number listed on the sign is out of service. 

The company’s office in Amherst is listed as permanently closed online and there was no answer at the number listed for the office. 

Brunswick News contacted K2 by email but did not hear back.