Seeking Advice: Tenant Wants to Terminate Lease Due to Mold Issue

Austin, Texas
General Landlording & Rental Properties
2yFollow

Seeking Advice: Tenant Wants to Terminate Lease Due to Mold Issue

Samuel Guan
Member since 2018 · 1 post · 0 votes

Hi everyone,

I'm new to this forum and seeking some advice on a situation I'm facing with my rental property. Recently, my property manager informed me that a tenant's attorney contacted them, expressing the tenant's desire to terminate the lease due to a mold smell in one of the rooms. The tenant is concerned about their child's health.

My property manager suggested allowing the tenant to break the lease without penalty or offering whatever they request at this moment to avoid potential litigation. The plan is to conduct mold inspection and remediation after the tenant moves out and then re-rent the property. However, I have some concerns about the potential costs involved in mold remediation, especially if it requires tearing up drywall.

I'm considering whether I should inform my insurance company to see if they can cover the damage. However, my property manager advised against it, as it might inconvenience the tenant further, who has already refused access to the property at this time.

I'm also wondering if I should contact lawyer to understand any potential legal liabilities, particularly regarding the possibility of a lawsuit from the tenant even after they move out.

Any insights or advice on how to navigate this situation would be greatly appreciated. 

0Reply
160 views

Most Popular Reply

Lynn McGeein
Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
2y

@Samuel Guan are you saying that your tenant is refusing access to the property? I’d make sure management got that in writing from the tenant as they must allow access with proper notice so they’re likely violating lease. I don’t think notice is even required if they are the ones giving you notice of problem that needs to be addressed, and if they’re really concerned about mold, you’d think they’d want evaluation asap. I’m not a lawyer, no legal advice, but if a tenant complained of mold, I’d schedule a mold inspection, giving proper notice to tenant for entry, and if the results show it, get estimates for remediation. You’d likely need to do that before you market it again, anyway, so why not start now? Id be there to ask the inspector questions, see it for myself. Then talk to a lawyer about next steps. Could they sue even if you let them leave, even though you knew nothing about mold? If no mold found, are they breaking the lease? Can lawyer provide you with an early termination agreement where they release you from liability? I wouldn’t discuss with tenant until I knew best options available to me. I think most insurance companies won’t cover long-term damage like conditions that promote mold, so read your policy thoroughly before contacting them.

2Reply
See this reply in the discussion

12 Replies

Jump to latestLatest
  • Lynn McGeein
    Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
    2y

    @Samuel Guan are you saying that your tenant is refusing access to the property? I’d make sure management got that in writing from the tenant as they must allow access with proper notice so they’re likely violating lease. I don’t think notice is even required if they are the ones giving you notice of problem that needs to be addressed, and if they’re really concerned about mold, you’d think they’d want evaluation asap. I’m not a lawyer, no legal advice, but if a tenant complained of mold, I’d schedule a mold inspection, giving proper notice to tenant for entry, and if the results show it, get estimates for remediation. You’d likely need to do that before you market it again, anyway, so why not start now? Id be there to ask the inspector questions, see it for myself. Then talk to a lawyer about next steps. Could they sue even if you let them leave, even though you knew nothing about mold? If no mold found, are they breaking the lease? Can lawyer provide you with an early termination agreement where they release you from liability? I wouldn’t discuss with tenant until I knew best options available to me. I think most insurance companies won’t cover long-term damage like conditions that promote mold, so read your policy thoroughly before contacting them.

    2Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    @Samuel Guan first, don't PANIC!

    Your PMC is recommending the path of least resistance, because mold claims could be VERY expensive.

    Also, many insurance companies will NOT cover mold issues.

    So, call your insurance agent and see if this will be covered or not.

    At the same time, direct your PMC to get a professional mold test done to determine if there actually is a problem or the tenant is mistaken or exaggerating. 

    Just be careful as the results of the test may embolden the tenant to ask for additional compensation.

    Logical Property Management4.9464 Reviews
    WebsiteView Page
    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    2y
    Quote from @Samuel Guan:

    I don't know all the details, but your PM response seems weak.

    Just because the tenant claims something doesn't mean it is true or that they have a valid reason to break the lease.

    The first thing you should do is verify whether mold is actually present. If it is, discover WHY it is present. Mold requires water and a food source (dust is sufficient), so it's important to find the source of water and stop it. Then you can clean/remove the mold and the problem won't come back.

    The most common source of moisture is lack of ventilation in the bathrooms or condensation on windows in the winter. In both cases, the tenant should be educated on their responsibilities and held accountable.

    Even if the water source were a leaking pipe or roof, you should be able to identify the problem, dry it out, and remove the mold professionally within a few days and then the problem goes away.

    Simply accepting the tenant's claim - without verification - and allowing them to break the lease without penalty is a bad policy that will cost you much more in the long run.

    The DIY Landlord Book4.7243 Reviews
    WebsiteView Page
    2Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    2y

    I would do as you suggested and if after you get it tested for mold by a professional, the test is positive; talk to your insurance company in.  Let the tenant out of their lease.  Mold is serious and you don't want to wait to deal with it.  When they go in, let the tenant know you will be accompanying the mold inspector and taking photos of the area where the mold is suspected.

    0Reply
  • Olivia Grabka
    Property Manager · Leominster, MA · Member since 2022 · 103 posts · 50 votes
    2y

    @Samuel Guan

    Allow them to terminate, make the repairs and move on; if you have someone that doesn't want to live in your apartment any longer let them go. No good comes from having someone in your property that does not want to be there.

    0Reply
  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    2y

    Soooooo many concerns with this and how to proceed. Being in FL we have lots of tenants try to use the mold excuse as a way to break the contract. We have only had two times where a tenant had mold and one time it was due to them not reporting a water leak. 

    Anytime we get a call from and "attorney" we verify that it is a legitimate attorney and not someone posing as an attorney. We have always found that someone was impersonating. Most attorneys will not take these cases unless there is extreme negligence and there is money to be made.

    It is a BIG red flag that they will not let someone in to inspect. We always inspect the property first! I don't know how many times have I gone out to inspect a mold concern and the tenant points out a 4" section on the grout line in the shower and tell me that this is why they should be allowed to move out without penalty. 

    It is another BIG red flag that the PM seems to be folding. It tells me that they may not be experienced with dealing with mold, attorneys, or disgruntle tenants. We don't even contact our owners unless we have verified that there is a mold problem.

    Before contacting a lawyer I would want to gather all of the information from the PM - maintenance requests, lawyer info, photos, inspection report, conversations with the tenant, etc. Once I review the info I would know if contacting a lawyer is necessary. 

    Most likely you have a tenant that just wants to break the lease without penalty BUT any health or safety concerns must be taken seriously and treated delicately. 

    [email protected]239-339-3969
    Bartomeo Property Management4.7143 Reviews
    WebsiteView Page
    1Reply
  • Kevin Sobilo
    Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    2y

    @Samuel Guan, I agree with @Nathan Gesner.

    I would start simply by issuing the tenant a written lease violation warning for denying access to evaluate any potential issue.

    This does a couple things. It puts the tenant on notice that the next step is filing for eviction which will create a public record as soon as its filed and potentially impact their ability to secure alternate housing. If they are making a false claim hoping to get out of their lease, this shows them how that could really backfire on them. 

    It also establishes clearly in writing that you were taking proactive steps to deal with the issue. That should mitigate any liability claim relating to the issue. In general you create liability for yourself when you know about an issue and don't address it OR you should have known about an issue and didn't take action. Here you are showing you are taking action and that the tenant is clearly responsible for the issue not being addressed. 

    0Reply
  • Maria G.
    Rental Property Investor · Northern California · Member since 2017 · 129 posts · 20 votes
    2y

    I am having a similar problem with my new tenants (of 7 months) complaining of condensation in between the double panes and mold. My prior tenants of 5 years (and the ones prior to that, who stayed for 2 years) never had an issue. A friend suggested the use of a vaporizer could be the culprit (one of their children is asthmatic) and a windows company who went to inspect it said they had covered the weep holes, which would definitely cause mold. Although they have uncovered them and it seems the condensation is still there...

    @Nathan Gesner I have some questions:

    1. What would you suggest to determine the actual reason?

    2. How can I educate them in the ventilation? I mean, perhaps they'll trust it more if some expert tells them (I'm afraid they are fixated in me changing glass/window)?

    3. How do you remove mold professionally?

    Thanks.

    0Reply
  • Savannah Yingling
    Realtor · Chevy Chase, MD · Member since 2023 · 74 posts · 51 votes
    2y
    Quote from @Samuel Guan:

    Hi everyone,

    I'm new to this forum and seeking some advice on a situation I'm facing with my rental property. Recently, my property manager informed me that a tenant's attorney contacted them, expressing the tenant's desire to terminate the lease due to a mold smell in one of the rooms. The tenant is concerned about their child's health.

    My property manager suggested allowing the tenant to break the lease without penalty or offering whatever they request at this moment to avoid potential litigation. The plan is to conduct mold inspection and remediation after the tenant moves out and then re-rent the property. However, I have some concerns about the potential costs involved in mold remediation, especially if it requires tearing up drywall.

    I'm considering whether I should inform my insurance company to see if they can cover the damage. However, my property manager advised against it, as it might inconvenience the tenant further, who has already refused access to the property at this time.

    I'm also wondering if I should contact lawyer to understand any potential legal liabilities, particularly regarding the possibility of a lawsuit from the tenant even after they move out.

    Any insights or advice on how to navigate this situation would be greatly appreciated. 


     Hi Samuel! As a few mentioned, you need to get it inspected to confirm whether or not it is in fact mold or if they're just simply trying to get out of their lease. You have the right to enter with proper notice and make sure you have everything in writing with the steps you're taking. We had a situation earlier this year with a tenant; there was a mold issue in a condo. We gave the tenant the option to break their lease but they wouldn't and tried to take us to court. The case got dismissed because we followed all of the proper steps to get it remediated. We did not charge the tenant rent while it was being inspected and when it went through the remediation process. I assume the laws are fairly similar in this situation from state to state but I would definitely recommend checking with another source in your area. Good luck!

    0Reply
  • Melanie P.Pro Member
    Rental Property Investor · Member since 2023 · 1k+ posts · 922 votes
    2y

    I would advise the tenant's attorney that 1) The first time you heard of any defect in the property was his letter. 2) There was no mold present when his client accepted the leased premises. 3) You have tried to investigate his claims and make any necessary corrections to the property but his client has refused access. 4) Describe your lease terms for early termination - what must be paid, etc.

    Also Google the attorney and law firm. It could be one of those legalshield plans where all they do is mail a single letter. Attorneys to worry about are contingency attorneys and legal aid. Pay no mid to a legal shield letter it is just the tenant communicating with you on a lawyer's letterhead. 

    If the tenant lets you in try to figure out what is going on with the moisture. If it just smells musty getting rid of the moisture will likely take care of the problem.

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    2y
    Quote from @Maria G.:

    If the moisture is between window panes, there's not much you can do. I've heard of drilling small holes at the top of the exterior window pane to allow trapped moisture to escape, but I've never tried it. You typically have to replace the window or window pane.

    The DIY Landlord Book4.7243 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free