All Forum Posts by: Account Closed

@Account Closed DON'T PANIC!

Majority of mold complaints are tenants panicking and/or trying to get free rent out of their landlord.

If they do get an attorney involved, their attorney will send you a written notice, which will lay out the issues and often tell you to give the letter to your insurance company.

Don't bother with this, but you can discuss with your agent.

When you or your PMC (or both) receive a legal notice of a case started, that's when you want to get your insurance company involved.

Recommend you keep a record of all your communications with your PMC about this issue. You two SHOULD work together as you both want protection from any claim. We have had owners try to throw us under the bus and hire their own attorney. Both times the owner's insurance company ended up covering us and NOT the owner (their client) and the owner had to pay our legal fees.
Your PMC doesn't seem to be on top of this and you state is already blaming you, so you may need to document that they are the problem, not you.

You are dealing with professional tenants most likely. It could be real and if so, you acted on it when you knew about it so I don't know how anything else could be expected, but liability is a different story. This is the oldest professional tenant trick in the book, but you should definitely get a lawyer on board now.

After reading all the great advice, I'll reiterate what you seem to be missing:

1) You must (not might, must) get rid of your PM. But hold on to all communications with them regarding this beause if this goes ballistic, THEY have a great deal of liability in this.

2) As @Nathan Gesner said, get a new Mold Remediation Company and have them go over the entire house 100% and re-treat it, then give you a written certification that it is safe and clean.

3) Get rid of your brother too. Or have him buy you out. He is not smart enough to be a rental property owner.....no insurance.....really?

I have to agree with Jonathan. The dangers of mold are dramatically exaggerated, and sometimes completely false.

Get a professional company that handles mold remediation. Have them check the entire home, not just the areas you are aware of, and mitigate the issue altogether. Talk to your insurance provider to see if this qualifies for a claim. Mold remediation can be expensive, but it may not be big enough to justify an insurance claim. They may even pay for the tenant to stay in a hotel until the home is safe again.

As for the tenants, I think you've gotten yourself into a pickle by letting this go long enough that they can claim health issues. It's always best to handle mold issues quickly and completely before the tenant gets the chance to claim you're killing them. However, I wouldn't worry about a lawsuit. You are dealing with the issue quickly and professionally.

The tenant told you the home is causing health issues. Give them the option of breaking the lease without penalty. This allows them to be safe, and it empties your home so you can mitigate the problem. If the tenant insists on staying, that indicates that they don't really believe there's a health risk.

I think your PM is incompetent or maybe just inexperienced. Regardless, you need a PM who takes the bull by the horns when issues arise. Whether it's mold, COVID, or a non-paying renter, a quality PM acts quickly and decisively to protect people, property, and the landlord.

If you feel the PM was negligent in their response, you can file a complaint with the state commission. I don't know if this rises to that level, but it's something to consider, particularly if the tenant does sue. 

How to find a quality PM

Start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. You can also search Google and read reviews. Try interviewing at least three managers.

1. Ask how many units they manage and how much experience they have. Feel free to inquire about their staff qualifications if it's a larger organization.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees. Fees should be clearly stated in writing, easy to understand, and justifiable. Common fees will include a set-up fee, a leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate, particularly if you have a lot of rentals.

4. Review their lease agreement and addenda. Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. A tenant complaining online might indicate that the property manager handled them appropriately, so be sure to ask the manager for their side of the story.

7. Look at their marketing strategy. Are they doing everything possible to expose properties to the broadest possible market? Are their listings detailed with good-quality photos? Can they prove how long it takes to rent a vacant property?

This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!

Contact your insurance company and confirm that your policy covers mold. MANY policies are explicitly excluding mold from coverage. If you have coverage, they will provide a lawyer. If not, get a lawyer that specializes in these type cases. 

I would have the mold tested by a professional company to identify the TYPE of mold in the house. Hundreds of thousands of types of mold and most are harmless. Showing you had harmless XYZ mold in the house protects you from a claim against black mold of death.

It is estimated that there are over 300,000 different types of mold. They range from tasty to certain death. 

Since their child was on a breathing machine, you should inquire what type mold it was, as I'm sure a competent doctor would send samples to a lab. They're not just going to treat a mold issue with a generic breathing machine. That's crazy liability for the doctor. 

Tenant is scamming you, but if the lawyer can write something that says you are not admitting any liability and this is a one time thing, perhaps.  When it comes time to renew their lease, I'd try to get rid of them. I know that can be harder in CA.

They are obviously just trying to get one over on you. I’m not an attorney, I’m not sure which state you are in either. I think that would play a big factor in how I would respond. 

In a blue state I would probably eat the $600, but no way I would renew them at the end of their lease. In a landlord friendly state I would tell them to pound sand.