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Tax, SDIRAs & Cost Segregation

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Nathaniel Wenner
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Inherited Tenant Threatens to Sue for Inherited Issue

Nathaniel Wenner
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Posted Nov 8 2022, 14:55

I purchased this property in June 2022 and inherited 4 tenants. 2 have since moved on and 2 remain. 1 tenant recently complained of mold in her unit. There was no indication of this on the home inspection and she has not brought up the issue before. She just signed a new lease (1 year) at the beginning of August. The lease states that she agrees to the condition of the unit but she has failed to fill out a move-in checklist that was provided to her. I got a quote to repair/clean up the mold 2 days after her initial complaint and am planning to have it repaired sometime in the next week depending on availability. Mind you it's $3,000. She has since asked me to deduct the cost of her at-home test from her late rent fee and I refused as the lease states she is responsible for items in her unit costing less than $50. She has since threatened to go to an attorney since she claims the mold has been causing her to miss work, causing issues with her son's health, and has racked up "extensive" medical bills. Is this something I should be concerned about as it was an inherited issue I was not aware of?

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Matt Devincenzo
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Matt Devincenzo
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Replied Nov 8 2022, 15:36

Likely not. First 'mold' doesn't always mean health issues, and she would need to prove that her health issues were directly tied to the mold. Second you have a very good defense that you are not negligent since you were unaware of the issue, and when you became aware you began to address it immediately. 

I'd simply tell her that if she intends to get a lawyer involved then all communication will need to stop between you and you'll refer the situation to your attorney. 

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Chris Seveney
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Chris Seveney
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Replied Nov 8 2022, 15:40

@Nathaniel Wenner

If it’s $3k in mold remediation I would refund the $50 for the mold test.

Why?

1. Because it’s a lot less than a lawsuit

2. While tenant is responsible for things under $50, that’s typically for minor repairs but if it’s a major issue then they should be reimbursed for that.

Just my opinion as a tenant can make your life a living hell and cost you a lot more than $50.

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