Avoiding Mould Problems and Lawsuits in the
Rental of Residential and Commercial Real Estate
GENERAL
Living or working in rental units that contain elevated levels of airborne mold spores and/or substantial mold growth contamination can cause very severe health problems.
Landlords have ethical and legal obligations to Tenants to provide an environmentally safe, habitable space. Those obligations go unmet when a rental unit is contaminated with mold.
Landlords may have legal liability to Tenants for such compensatory damages as expenses for medical mold diagnostic and treatment procedures, loss of earnings, mold damage to tenants' clothing and personal property, moving expenses, any tenant-paid expenses (such as mold inspection, testing, and remediation of the rental unit and tenant possessions) as well as punitive damages awarded by a jury.
In Hayward, California, a jury in 2004 awarded $4 million dollars in damages because of mold infestation and other substandard living conditions on behalf of 124 past and present tenants of an apartment building whose owner failed to do proper mold remediation and maintenance of the mold contaminated apartments.
If the Landlord accurately and completely inspects and tests for mold (due diligence) and provides complete disclosure to prospective Tenants, and the Tenant’s have full and unrestricted opportunity to inspect and test the rental unit thoroughly prior to signing the lease agreement then the lease agreement may include a clause that releases the Landlord and its rental manager, rental real estate agent/broker, etc. from all mold liability to the Tenant.
AS A TENANT
As a prospective tenant you should inspect the rental unit thoroughly and have mold testing performed by a Certified Mould Inspector before signing the rental agreement.
During the inspection you should do an all-around physical examination of the building for both visible and hidden signs of both water damage and mold growth. If you are doing the inspection yourself and you are concerned about something that you find you should have a Certified Mould Inspector verify your findings before signing the lease agreement. The inspector should mold test the air and any visible mold growth in all rooms, the basement, crawl space, attic, garage, plus the airflow from each HVAC system.
AS A LANDLORD
Do not offer the property for rent until after a thorough mold inspection and mold testing of the entire rental building or of individual rental units (prior to rental) determines that the property is mold-safe for tenants to live or work in.
If there has been a plumbing line break or leak, roof or siding leaks, flooding, storm damage, or other water intrusion problems, the building should be thoroughly and promptly mold inspected, tested, and remediated as part of the water damage repairs and restoration.
If the mold inspection and testing uncovers visible or hidden mold problems, then immediately perform mold remediation. Only use a Certified Mould Remediator and perform independent “clearance testing” of the building after remediation has been completed to ensure successful removal of the contamination.
Never hide or conceal mold contamination by deceptions such as painting over mold growth, concealing mold growth behind stored items, furniture, furnishings, and decorations and masking the distinctive smell of mold growth with air fresheners and deodorizers. Mould contamination does not go away on its own, the problem only gets worse the longer it is left.
Disclose in writing to all prospective tenants any previous or present building water and mold problems, and what the Landlord has done, if anything, to correct such problems. Attach these water damage and mold disclosures to the rental agreement so that the tenant acknowledges receipt thereof.
http://www.mouldinspector.com/rental.html
http://www.ontariotenants.ca/health/black-toxic-mold.phtml