Applicant's Co-Signer Is Questioning Lease Provision

[Christopher Freeman]

Howdy all,

We use a modified version of the generic lease that comes with @Brandon Turner's [really awesome] Book on Managing Rental Properties. We had to make some changes to conform to New Hampshire state law, but other items we left in, including a provision in which the tenant agrees to have inspected the unit for mold and holds them liable for any mold damage that occurs during their tenancy.

In principle, I think this is a fairly reasonable provision; however, the applicant's co-signer questioned it, stating that:

"’I'm not used to seeing the provision that holds the tenant liable for mold damage.

[Applicant] is not trained to identify any preexisting mold or mold damage.

Do you have a certification that attests that there currently is no mold or mold damage?"

Not an unreasonable question in my opinion, and frankly I'm glad that both the applicant and the co-signer are reading so carefully. Most people just skim and ignore me during their orientation and then get mad when I hold them to their contract down the road.

I don't have a good answer, though. We don't have any sort of certification in place, and I wouldn't know where to obtain one. My interpretation of the provision is that it primarily relates to visible mold and mildew/tenant caused issues.

How would you respond in this situation? Is the provision reasonable to have in there in the first place? Does the requirement that the tenant return the unit in the same condition it was received already cover me here/is making the explicit observation about mold just confusing the issue or making the lease seem more draconian than it really is?

[Lynn McGeein]

I've been a cosigner refusing to sign when a term exposing my daughter and myself to possible excessive hidden costs was in the lease.  They wouldn't change it, so we found another place for her.  

These are clauses I've used in my leases now for the past 5 years or so, and "visible" is key to avoiding issues on both sides, I believe.  

Landlord declares there are no damages to the dwelling unit, all systems and appliances provided are operating and functioning normally, and there is no visible sign of mold or pests on the Premises. 

Tenant shall use reasonable efforts to maintain the dwelling unit and any other part of the premises that he occupies in such a condition as to prevent accumulation of moisture and the growth of mold, and to promptly notify Landlord in writing of any moisture accumulation that occurs or of any visible evidence of mold discovered by Tenant.

DISCLOSURES: Tenant acknowledges receipt of the following documents: EPA’s A Brief Guide to Mold, Moisture, and Your Home (PDF format may have been emailed instead of actual paper pamphlet)