Tenant Suing Over Mold - Help!

[Jason Powell]

I bought a building 6 months ago with inherited tenants. Against my better judgment, I let one of the tenants stay and did not serve a no cause termination. The property inspector 6 months ago noted small spots of mold on some baseboard corners, and also noted that he could not find where the bathroom fan penetrated to the exterior.

Zoom forward 2 months - I routed the bathroom fan properly to the exterior (fixing the humidity issue). The tenant requested that they clean up any visible mold instead of myself or someone I hired.

One week ago, this tenant has come out of the woodwork wanting to sue me over continued mold growth (about 5 spots, the size of the palm of your hand). I have no reason to believe there is any moisture issue from the building itself (and I've had more than one contractor come out, two even that put moisture readers on the walls and ceilings with no abnormal results).

My question is, what steps should I take as a landlord? The guy pointed right in my face and told me he was going to sue me for everything I've got, take my building from me, and then burn it to the ground. I've got many more details to this lengthy story I could share, but would SO appreciate your knowledge and experience!

[Deanna McCormick]

Call a mold remedation company in your area.

They will do a test to determine the level.

Take photo's of the area's your tenant is complaining about. 

do some more research on companies that treat and do abatement for mold. Have them come out and give you a bid once the test has been done.

Your probably looking at replacing some sheet rock repainting and stuff like that in bathroom and the inspection is about 135 to 150 bucks,, 

When does the guys lease expire... I'd make sure you have a non-renewal prepared.

You could file a report with the fire department that this tenant threatened to burn your building down.. honestly I'd probably make the call if it were me.. That's a pretty huge NO NO.. 

[Jason Powell]

Thank you Deanna!

I have called a remediation company Servpro. They encouraged me not to take a mold sample to a lab or do an air quality test, indicating that it would be a pointless endeavor. They stated that the important thing is to find the cause and implement a solution (cause is very possibly from tenant at this point). The tenant grew weed in the apartment for a period of time (right before I purchased the building 6 months ago) and admitted to smoking weed in the unit while I owned it. Not great things for humidity.

He is on month to month, and I would LOVE to serve a no cause - but could he come after me for retaliation?

[Deanna McCormick]

Post in landlord tenant and you might get somemore reponses.

This happened to me not law suit ,,but tenant went behind my back, didn't even make a complaint called her own mold testing guy out and then called and told me what she did..She had just moved in, the test showed mold was not at a level for any issues,, but I had some discoloration on wall by a piece of baseboard coving under the bathroom sink that was loose and they said needed to be treated and replaced.  I did that, put new caulk around everything in the apt.. Told the tenant that I would happily let her out of the lease immediately or by months end. She decided to leave so.. not sure what she was up to but I wasn't going to wait to find out what was next.  She said I was responsible to pay for the test.. so as long as I got the report I did.. just glad it wasn't worse. It's not that I was worried about the apartment but this person was OMG just plain off her rocker she switched and like turned into a monster.. 

[Account Closed]

Originally posted by @Jason Powell:

Thank you Deanna!

... The tenant grew weed in the apartment for a period of time (right before I purchased the building 6 months ago) and admitted to smoking weed in the unit while I owned it. Not great things for humidity...

So you have evidence the tenant was running a weed growing operation from the apartment unit and proof of mold causation due to tenants action?

[Bill Hamilton]

In general, most municipalities don't have regulations on mold from the landlord side, other than requiring they attempt to remediate whatever may be causing it. I would do your own research on state and local laws/regulations but from there, I would just do A) whatever the law requires you do and then B) do what your conscience guides you towards. But based on the link below, what I have read, and what I have gone through with a mold issue, I don't think you have a lot to fear.

http://www.nolo.com/legal-encyclopedia/mold-rental...

[Devin Deswert]

I can't help with your current problem as I'm not a lawyer. But in the future I would recommend adding a mold addendum to your lease. In short it basically states that when leased the property was mold free and signing a lease places responsibility on the tenet to maintain proper climate control to prevent mold, in the event of mold it is the tenets responsibility to notify you and yours to remedy the issue. It's a pretty common form along with the lead paint addendum and smoke detector tempering.

Also I hate how current tenets get a bad rap, you arnt inheriting them they are inheriting you, you are buying a asset they are part of what makes the asset. It's sloppy landlords that are the issue most the time. Durning your due diligence knowing what's signed is something you should know and should be able to see late fees/payments on statements. If it needs to be signed then produce the document and have them signed or they need to go and go when you are legally able remove them. Which varies greatly from state to state.

[Jason Powell]

Mike - I do have a photo showing the closet walls and floor lined with plastic, grow lights, thermometer mounted to the wall, etc. But they obviously moved the plant for the inspection. I'm not aware of how someone could "prove" that was the cause.

Bill - Thanks for your response, that's a bit comforting. I've so far hired 3 people to inspect for moisture in the walls, pipe leaks, or exterior water leaks. None found any. I tried to clean the mold (after 24hr notice of course) and was told to "get the F#! $ out of there. Luckily I brought a witness. I guess there's not much more to do until the tenant actually sues me or stops paying rent. I'd serve them a no cause termination in a heart beat if I wasn't worried for retaliation.

Devin - I did have them sign a mold and mildew addendum. However, how can I prove or disprove they use their bathroom fan, open the windows twice a week, etc. If they live a lifestyle conducive to mold growth, and are generally very dirty people who don't clean anything, is it really my job to continually clean up after them?

I agree it is a two way street when inheriting tenants or a landlord. However, even the nicest most generous landlord in the world will be the "bad guy" when they buy a poorly run and dejected property for the purpose of renovating and raising rents. In my case, I offered to work with most existing tenants and not just boot them out (which I should have done in retrospect). Others, I had to just boot out (i.e. one guy hadn't paid rent in 5 years.)  I even gave that guy an additional 30 days above what I was obligated to to be the "nice guy".

[Russell Brazil]

Counter sue for abuse of process

[JD Martin]

First off you need to get this tenant gone, pronto. Second, I would ignore the threats of lawsuit. People who are serious about suing don't make threats, they go get lawyers and you get certified letters. People who are full of it puff and bluff. Third, I would make sure the apartment moisture is remediated properly so that you don't have any problems with future tenants.

It goes without saying but you should have booted this guy pronto from the beginning. If you are afraid of physical harm, get a restraining order. 

[Thomas S.]

The mold issue is tenant caused likely due to air circulation. Remediate the mold. In the future never let a tenant do it themselves or you will face this scam again. You were played by a con/semi professional tenant. Intimidation is his first step.

Give the tenant notice to non renew, tell him to pound salt and expect to have to evict when he refuses to leave. You have been set up by this tenant and will now face a fight to get rid of him. That is his plan and you can not avoid it. Do not expect to receive any more rent and do not be surprised when he attempts extortion to make him go away..

[Jason Powell]

Thomas - I think you are spot on. The tenant already did say more than once that if I wrote him a $4,600 check he will call it even and find another place to live.

Fortunately I had at least some sense and put him month to month. Would giving him a non renew, or "no cause termination" as I call it, not be a sign of retaliation?

[Mike Cumbie]

DISCLAIMER: Not legal advice and simply the mindless ramblings of some dolt on the internet.

If there is a life threatening condition within the unit the tenant should absolutely leave while it is investigated and handled PERIOD. I can think of no reason that someone would remain inside a unit that could potentially kill them, so the only logical thing for him to do is to vacate the premises.

Renters insurance is obtained so that "Loss of use" is covered and the assumption is that the tenant has that or should have obtained a policy. A simple claim should cover his time in a hotel while you have Servpro do their thing. In the interest of customer service you could agree to pay the $50 deductible. If he does not have a policy then you could agree to put the $50 that you would have paid to help him out.

[Brett Tousley]

It seems like a good time to run that question past your attorney. 

I'd get him out as quickly and legally as possible.  

[Chris K.]

@Jason Powell

1. I don't know anything about OR law, but I suppose the question is what claims can your tenant bring against you? If he has suffered some kind of physical harm, then he would have a valid claim. If he felt uncomfortable using a part of the house due to the mold, maybe he has a claim for pro-rated rent. But again, I'm not 100 percent sure what exactly he will sue you for. 

2. Retaliation-wise, he could sue you for whatever he wants. But again, it's unclear what exactly his claims will be. You could potentially turn around his argument and say that you had to end his tenancy to deal with the mold issues to avoid any further harm to him. 

This depends on your circumstance, but I may consider paying him to leave the property and having him sign a release before doing so. 

3. Now that you are aware of a continuing mold problem, I would try to solve it before renting the property out to another tenant. Knowingly renting out a property with recurring mold problems without any remediation attempt could lead you to a dangerous path --- especially depending on the type of mold growing. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it as legal advice. Always consult with your attorney before you rely on the above information.

[Vladimir K.]

For what it's worth, in the state of IL, the Local Association of Realtors no longer provides Mold disclosure forms.  See this link for info

http://blog.illinoisrealtors.org/2016/10/illinois-...

Your state may be different, but I think the link makes some good points.   Also, I'd recommend you contact an experienced eviction attorney in your area.