Tenant wants to break lease with mold excuse

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Tenant wants to break lease with mold excuse

Kush Khandelwal
Investor · Member since 2019 · 50 posts · 12 votes

My new tenants SFR in Grovetown, GA are complaining of possible mold and wishing to break the lease. Seeking any advice. To add more background.

I purchased this property in October - it's a 2004 SFR in great condition with no history of prior water damage. New tenants moved in 3 weeks ago in early December. They just wrote to me complaining of getting sick due to possible mold - while they cannot point to visible signs of mold, they claim they smell mildew and mold like odors which are making them sick.

I did a bit of digging and it doesn't appear that nobody in the past has gotten sick - this includes handymen and painters in the house, as well as the prior owners/residents. Seems that the new tenants may just be really sensitive to the air in the house.

So now they've asked to conduct a thorough mold inspection, and if I do not agree, they want to break lease (without penalty) and leave.

I understand that laws in Georgia regarding mold are unclear, so should I agree to the mold inspection conducted by them - where if there's mold then I should pay for remediation and fix?

My fear is that they may not hire the most cost-effective and unbiased agency for the job. Also, I understand that the presence of mold doesn't always result in binary answers - given the humidity in GA there's always *some* mold in the air.

Would love any advice on dealing with this issue!


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Scott M.
Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
4y

Don't fall for it.  Let them out of the lease and thank your lucky stars when they are gone.  You are 3 weeks in they are going to be a nightmare.  When vacant have your own expert do a test and deal with the outcome.  Re rent and move on with life.  I would wait till they are out before you have your expert in but you can rerent and test/do work if need be at the same time.  in the end you will get an "all clear" report so if this comes up again you are covered.  

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  • Hersh Rai
    Rental Property Investor · Honolulu, HI · Member since 2019 · 31 posts · 8 votes
    4y

    Hi Kush, I own in Georgia as well, but unfortunately have not run into this problem. However, a mold inspection is relatively inexpensive in comparison to the larger problem that looms if the mold spreads (if present). I would choose and pay for your own trusted vendor, and be transparent about the results with the tenants.

    If they decide to leave regardless, you may be able to pursue them in small claims court, or potentially just move on and find new tenants. 

    1Reply
  • Scott M.
    Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
    4y

    Don't fall for it.  Let them out of the lease and thank your lucky stars when they are gone.  You are 3 weeks in they are going to be a nightmare.  When vacant have your own expert do a test and deal with the outcome.  Re rent and move on with life.  I would wait till they are out before you have your expert in but you can rerent and test/do work if need be at the same time.  in the end you will get an "all clear" report so if this comes up again you are covered.  

    4Reply
  • Joe Martella
    Rental Property Investor · Cherry Hill, NJ · Member since 2015 · 626 posts · 495 votes
    4y

    One rule I have is that I will not allow a tenant to hire someone to inspect or repair my property.  Let's think this through.  They are tenants of 3 weeks and already are complaining.  They are asking to leave.  I would let them leave.   Chances are that if they have someone inspect and they find mold, then you have confirmation and have a possible lawsuit and costly remediation.  If the inspection is negative then I am sure there will still be complaints of smells or something else.  Are these people that you want to do business with?  They will be miserable, you will be miserable, is it worth keeping them in the lease?  I Would charge them for the time they have been there and let them out.  Once they are out, you can then do your own inspections/repairs and re-rent.  In a market like this you should have no issues finding another tenant.

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  • Sean Saxon
    Rental Property Investor · Denver, CO · Member since 2020 · 8 posts · 4 votes
    4y

    @Scott M. This is great advice. 3 weeks in and complaining already, what happens in 2 months, 6 months a year? Once they are out have a mold inspection done, just to be safe and then rent it out again. Good luck!

    1Reply
  • Bobby Kalchev
    Contractor · Townsend, DE · Member since 2019 · 24 posts · 16 votes
    4y

    @Hersh Rai when you hire a mold inspector make sure they are an independent one. Do not hire a mold remediation contractor for the inspection because you will not get a real inspection but a sales pitch for mold remediation.

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y

    I'm 99% certain they are using mold as an excuse to break the lease.

    1. The mold typically has to be visible for it to cause any problems. Have they sent you any pictures showing evidence of mold in the home?

    2. Mold illness is greatly exaggerated. Most molds are not dangerous to one's health and even the dangerous ones tend to worsen already-existing health issues like asthma.

    3. The most common cause of mold is lack of ventilation or a water leak. If nothing is leaking and you still have mold, it's probably from shower/bath humidity due to lack of ventilation or it's condensation on windows in the winter. Both of those can be cleaned and remedied by the tenant.

    None of this matters. They're probably making this up to get out of the lease. My recommendation: tell them you will hire a professional to test for dangerous molds. If nothing is found, the tenant pays for the test and stays on the lease. If dangerous mold is found, you pay for the test and will let them leave with no penalty. You can also give them a third option which is for them to move out in less than 30 days, forfeit the deposit, and everyone moves on.

    If they're making this up, which I suspect they are, they will likely take the latter option.

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