Mold found by tenants
Hello, we are renting out a property in Oceanside for three years to the same tenants. After the unusual amount of rain this year, our tenants complained that there is a smell of mold and hired an inspection. The inspector said that the house is inhabitable as there is mold inside the walls. Our tenants have renters insurance, we have landlords insurance.
Can someone advice what are the next steps we should take? How do we correctly deal with this problem from the legal standpoint and just from the human standpoint? Thank you!
#3 Managing Your Property Contributor
If the house is uninhabitable, talk to your insurance company. Your tenants will need to find another place to live while remediation takes place. Your insurance will cover the lost rent and once remediation is done, you can offer the original tenants the right of first refusal to move in.
Some insurance companies will cover mold & income loss as an add on. Review your policy and call your insurance agent asap.
Quote from @Jen Breysler:
Do you mean the house is "uninhabitable" and not safe to live in?
If that's the case, my recommendation is that you terminate the lease and have the Tenants move out. You don't want the risk of a health liability on your hands.
Contact your insurance company and initiate the claim. They may provide you with some instructions, but you want to contact a mold remediation company that works with insurance claims. They can assess the scope of the job and work with your insurance provider to remedy the situation and make the house safe again. This could be a one-week job or it could be an entire month or more depending on the scope.
Whoa! What proof do you have? Did the tenants provide you with their inspection report? Why did the tenants complete the inspection - it's invasive when done correctly - instead of you? Was the wall repaired where it was detected? What was the cause of the infestation per the inspector? Did you have a separate inspection completed? If the place is 'uninhabitable,' why are the tenants still there?
In Florida, mold is a common scam. My neighbor just paid $12k for mold remediation - and brace yourself - when the wall came down and the owner insisted on being present - there was nothing there...no mold, no mildew, nothing. Thousands more were then spent to put walls back up/paint/baseboards/more. Another BPer in Las Vegas had a major mold issue within an adjoining wall of a condo; the other unit had a pipe leak which caused the mold. His tenant was threatening to sue - yet just would not stay out of the condo even though he was put up at a hotel. In the end, the lease was terminated and the tenant found other housing - while the mold was remediated.
Long story short: KNOW before you act. And, tenants should not be making inspections of your property - especially those involving damaging walls and more.
Get the tenants out to limit your liability. Require they provide their inspection report in lieu of being provided with short-term housing (hotel, airbnb, etc). Depending on the findings, you may be able to do a quick remediation if needed and if not, terminate the lease and let the tenants go with the security deposit.
Ugh! Sorry you're going through this...it happens but just make sure it really has.
I'd get my own professionals to the property asap to evaluate the situation. Like others have said, request a copy of the report from the tenant's inspectors, but hire your own people to cross reference the information.
