Avoid $6M Mold Lawsuits: A Landlord’s Action Plan

Property managers have a legal and ethical obligation to maintain safe and habitable living conditions for their tenants. As the Multifamily Dive recently reported, a recent $6.6 million jury award in a toxic mold lawsuit against Anza Management underscores the severe consequences of neglecting mold complaints. This case involved multiple complaints of leaks and mold issues, which eventually led to chronic health problems for tenants and even a ceiling collapse. The substantial financial and reputational damage suffered by the property management company highlights the importance of proactive mold management.

To prevent similar legal and health crises, property managers must adopt a structured approach to handling mold complaints. Here are the key steps to take:

1. Treat Every Mold Complaint as Urgent

Tenants reporting mold should be taken seriously from the outset. Mold exposure can cause or exacerbate respiratory conditions, allergies, and other health problems, particularly in children, the elderly, and immunocompromised individuals. Delayed or dismissive responses to tenant concerns not only put occupants at risk but also expose property managers to significant liability.

2. Conduct a Thorough Initial Inspection

Upon receiving a complaint, management should promptly schedule an inspection of the affected unit. This includes:

  • Visually examining walls, ceilings, floors, and ventilation systems for signs of mold growth, water stains, or leaks.
  • Checking for moisture sources, such as plumbing leaks, roof leaks, or condensation buildup.
  • Speaking with the tenant to gather more information about the extent and duration of the issue.

If visible mold is found or suspected, further professional evaluation is necessary.

3. Hire Professional Mold Testers (Here’s Why)

Mold can often be hidden within walls, under carpets, or in HVAC systems. A licensed mold remediation professional can:

  • Conduct air and surface testing to determine mold spore levels and species.
  • Assess the extent of contamination and identify the root cause of moisture buildup.
  • Provide a remediation plan that complies with industry standards and local regulations.

4. Emergency Mold Remediation Protocol

Once mold is confirmed, property managers must act swiftly to remediate the issue and prevent further damage. The remediation process typically involves:

  • Addressing the moisture source: Fixing leaks, improving ventilation, or dehumidifying areas prone to moisture.
  • Removing contaminated materials: Severely infested drywall, carpets, or insulation may need to be replaced.
  • Cleaning and treating affected surfaces: Using EPA-approved mold-killing solutions and sealing treated areas to prevent recurrence.
  • Ensuring tenants’ safety: If mold contamination is severe, tenants may need to be temporarily relocated until the issue is resolved.

5. How to Verify Mold is Truly Gone

After remediation, it is essential to verify that the issue has been successfully addressed. Steps include:

  • Conducting a follow-up inspection with tenants to confirm no visible mold growth or moisture problems remain.
  • Retesting air quality to ensure spore levels have returned to safe levels.
  • Obtaining clearance from a professional inspector, certifying that the unit is safe for occupancy.

6. Prevent Future Mold Outbreaks

To reduce the risk of future mold problems, property managers should:

  • Perform regular property inspections to detect leaks and moisture issues early.
  • Educate tenants on proper ventilation practices and prompt reporting of leaks.
  • Implement a routine maintenance schedule for HVAC systems, plumbing, and roofing.

7. The Paper Trail That Protects You

Throughout the complaint and remediation process, detailed records should be kept, including:

  • Tenant complaints and communication logs
  • Inspection and professional assessment reports
  • Remediation work orders and completion reports
  • Final clearance testing results
  • Proper documentation can serve as a critical defense in the event of future legal claims.

Turn This $6M Mistake Into Your Advantage

The $6.6 million judgment against Anza Management serves as a stark reminder of the financial and legal consequences of failing to address mold complaints promptly. By taking tenant concerns seriously, conducting thorough inspections, engaging professional remediation services, and implementing preventative measures, property managers can safeguard their tenants’ health, protect their properties, and avoid costly litigation. Proactive mold management is not just a legal necessity—it is a vital aspect of responsible property management.