Mold issue in house, abated rent, tenant still threatening to sue

[Ian S.]

Hi, we’re looking for some advice on how to deal with a tenant who is threatening to sue us over a mold issue in a rental home we own.

The issue first came up in October, whereupon our property manager immediately abated rent and arranged for mold testing to be done.  Although there was no elevated humidity or surface areas affected with mold, several of the air samples came back with very elevated levels.

Almost immediately upon receiving this notice we offered to let them break their lease without penalty. They refused. We later offered to put them up in a hotel while remediation was in process. They refused. The mold remediation is now in process regardless, after having gone through a couple of unacceptable vendors and changing property managers. (And having trouble getting the tenants to allow the work to take place).

The tenant wants us to cover all their medical bills / urgent care visits and we do not think this is a good idea. (We have no way of knowing if they’re really related to anything to do with the house, when they ask us to pay the bills they won’t show them to us and we don’t want to suggest we’re responsible for any other allergy related doctor visits in the future). They are threatening to sue us. Now that our new property manager has explained they’ll have to pay rent once the issue is fixed (imminent) they are now saying they will be out in 30 days (and we would refund the damage deposit if the place is in good shape), but we have no faith they will actually vacate.

Any advice on how we approach this situation? Is this a “cash for keys” situation? Any recommendations for lawyers in the Charlotte, NC area if that is really what we need to do?

Thanks!