Tenants screaming mold and would like fellow PM feedback

[Michael Peters]

Fair warning that this is a long story.  I'm also relatively new to my PM role so any feedback on how this could have been handled better in the future and how to proceed with this situation would be beyond helpful.

So I have a family at one of the properties we manage for another owner that is convinced without a doubt that mold is present in the home and we are ignoring their safety concerns.  We took on a property from another PM company in March, tenants already in place.  Did a walk through with the owner no issues were brought forward.  We have some really heavy rains and water starts coming into the properties kitchen through some exterior french doors.  It would create a small pool on the wood floors and the tile in the basement directly underneath it would get wet as well.  Tenants were always super on top of cleaning everything up and honestly great about the situation.  Eventually learned that this has been an issue with the previous company.  We go through our normal due diligence to figure out whats going on sending out a variety of vendors whenever we get a call and cleaning up any water as needed.  Tried multiple routes before determining the door just needed to be replaced with a slider.  Contractors were difficult to line up for the job and this last part took about 3-4 weeks before approving a bid and repair date.  This is the only part of the situation where I feel like I dropped the ball, but I just couldn't find anyone sooner.

During this last part the tenants started to believe the home must be covered in mold.  I informed them that we had never seen anything to indicate it during our visits and we would have to wait to see what the contractor found when he pulled everything apart.  They were not pleased with this and requested a mold inspector be hired.  I reiterated we would wait for the contractor and take actions based on what was found.  Tenants called the local rental inspector to complain and sent him pictures of some mildew they found after removing a baseboard.  Inspector used to be in the mold business and agreed with me that that was mildew but we would stay in touch for the door replacement.  

Contractor started work yesterday and I made sure to be present to both put the tenant at ease and handle any potential issues on the spot.  Removed door and found it was beyond incorrectly installed.  In particular there was a large gap in the frame and floor that was allowing water to enter the property and empty directly in the basement.  Part of the subfloor there had also lost its durability and had some mildew so we ripped it all out to be replaced.  Removed and examed all the insulation finding it bone dry with zero evidence of any damage, no midlew down there.  Also could see and feel down into the basement wall and no issues there.  Vendor bought all new materials and after explaining that we found nothing to the tenants I left them to their work.  Had the vendor spray every inch of the area with mold killer just to put the tenant at ease.

Got a call from the city inspector 30 min later who said the tenants were concerned for their safety.  Made the trip back out to meet the inspector.  Inspector looked everything over and agreed no mold.  Tenant still set on a mold test being required and the inspector even tried to discourage it as a waste of time and money at this point.  He then suggested the tenants could pay for one and we would handle anything as needed.  I had already proposed this to the tenant.  Husband calls me later that night saying he spoke to the contractor and wanted to know what we were going to do about the mushrooms the contractor found under the subfloor.  I called him on the lie, nicely, since I was there.  Reiterated we would see what the test said.

Mold inspector came today.  Tenant called again stating the inspector said the house was unlivable, he couldn't believe we dropped the ball like this, and that the basement needed to be gutted today.  Called the inspectors office who confirmed they would never tell someone that and that we should wait for the results.  So tenant was caught in another blatant lie.  Informed the inspector of the new complaint who is on our side at this point.  Told the tenant who was not happy.  Just received an email stating they wanted to sit down for a reveal of the test results on Monday with their lawyer present.  

Honestly the last request makes this sound like some kind of weird mold game show.  I really don't believe the test will reveal elevated levels and taking part would just add legitimacy.  I currently plan to have them just send me the results and if there is an issue I would handle remediation just like I would anywhere else.  

If you made it this far your a hero in my book.  Did I handle anything incorrectly?  Any suggestions on moving forward would be very appreciative.

[Patricia Steiner]

There are several issues here that have nothing to do with mold:

The tenants are tainting the property.  Through their actions, they have literally branded the house to be "toxic."

The tenants are misrepresenting inspectors' feedback.  (Did they not think that this could come back on them?).

The tenants are reporting issues with the property outside the PM/owner boundary and have actually engaged a city inspection claiming the house is uninhabitable.

Personally, I would have preferred the mold issue - over the toxicity of these folks.  Having said that, there was a water issue and water issues bring a whole host of problems. I recently had a buyer during an inspection yell (yes, yell):  TOXIC MOLD and WDO.  Neither was present, he wasn't qualified to make that determination, and the truth was he didn't want to buy the property, his wife did.  That was how he chose to resolve a marital financial issue. 

My recommendation would be to send them a Notice To Quit for Reason Other Than Non-Payment of Rent.  I would note all the inspections and corrections that have occurred at the property and that they have made inappropriate/false statements that are not substantiated by the inspection findings. State that any/all inspection/repairs that they engage on the property will be at their sole expense and that the property may not be altered in any way during said as they are not the owners.  Send it by regular and certified mail/return receipt requested.

They - like my "big proclamation buyer" - have an agenda of their own. If they really thought there was "toxic mold," they would have notified you, left, withheld rent pending repairs, etc. They didn't. They just keep screening/calling inspectors - while they live in it.  They may want you to let them out of their lease and return their security deposit or they may just want to live rent free for a while.  They may also like the attention. 

Issue the Notice to Quit before you do anything else. An offer to leave with security deposit may come back as an "admittance of guilt" in a health lawsuit or tenant/landlord claim.  Make sure all your documentation is in order.  If you decide to let them leave (and for me it wouldn't be quick enough if it were now), have them sign a release that they are leaving under their free will without claim against the owner, PM, property.  

And, I'm with all fellow BP posters before me...you did a good job in handling this situation.