EILEEN LEE
‘Credible information’
In an effort to guard themselves from mold-related lawsuits, some apartment owners and managers are shifting some of the responsibility and telling tenants how they can prevent or limit mold growth in their homes.
In fact, as more insurers have refused to write policies that cover mold-related damage and health problems, a number of landlords are sending letters and adding clauses to leases informing renters on how they can limit mold growth and warning them that if they fail to comply they will be held responsible for damage and health problems that arise from mold.
Such warnings are coming about at a time when thousands of mold-related lawsuits are pending nationwide and a flurry of media reports have created a panic over the dangers of mold. According to the Insurance Information Institute, mold damage claims appear to have increased recently, particularly in Texas and other states in the south and west of the United States where heat and humidity combine to make fertile environments for mold. In Texas, the number of mold claims increased from about 1,000 at the beginning of 2000 to more than 14,700 at the end of 2001, according to the institute.
Experts blame the increase on everything from energy-conserving building construction that prevents moisture from escaping to changes in building materials, poor quality construction and inadequate maintenance.
Some groups, like the National Multi Housing Council in Washington, D.C., are advising apartment owners and management companies to work with renters to limit mold growth in their dwellings. The group even offers to its members sample tenant notification letters and language that can be added to leases.
“We do think that it’s important for property owners and managers to acquaint their residents or commercial tenants with … mold because there’s so much in the press about it,” said Eileen Lee, vice president of environment for the National Multi Housing Council.
The NMHC urges property owners and managers to encourage residents to notify them about excessive moisture, leaks, water damage or malfunctioning ventilation, and then to respond to those complaints promptly.
“It’s important because while the property owner and manager sees things in the common areas and is responsible [for maintenance] on the outside of the building, there could be situations in the tenant-occupied space which really need the attention of the property maintenance staff but they could go undetected unless the resident was realizing that they needed to report things like excessive moisture, drips, things like that,” said Lee.
‘Standard’ Policies
Last year the NMHC and the National Apartment Association published an operation and maintenance manual identifying the best practices that apartment owners and managers can use to manage mold growth and moisture problems on their properties.
Lee said some of the larger apartment communities can also inform residents about mold through newsletters or information packets that are provided when tenants move in.
“That’s an opportunity to give people some credible information,” she said.
In the Bay State, more of the larger property owners and management companies are adopting corporate policies on mold, but the smaller property owners might not be as aware of the issue yet, according to Matt Dillis, a vice president and chief engineer in Berkshire Mortgage’s Boston office.
“In the larger developments those [mold policies] are become more and more standard,” he said.
Mold can grow in homes because of excessive moisture and humidity. Simple steps like regular cleaning of damp surfaces – particularly in bathrooms and basements – vacuuming and use of a de-humidifier can limit mold growth. And if caught early, mold can be cleaned using a bleach and water solution. According to the Centers for Disease Control and Prevention, the most common health problems associated with mold are hay-fever-like symptoms.
By providing information and warnings to residents, property owners and managers can argue that they have done everything they can to prevent mold problems if damage or health issues arise. But Dillis still questions whether providing tenant notification letters and addenda about limiting mold growth in leases truly protect property owners.
“Legally, does that buy you much as an owner? That’s still kind of up in the air,” he said.
In Massachusetts, mold isn’t as much of a problem as in other parts of the country.
“It’s not such a big issue here in Massachusetts because of the strength of the real estate market,” he said. “You see the problem more in areas where there is a softer real estate market – like in the Midwest and some parts of Texas,” he said.
Dillis explained that in some parts of the country with high apartment vacancies, managers sometimes shut empty units and don’t routinely check them. If there’s a leak in an empty unit that goes undetected for months, a routine fix can become a costly containment project, he said. In addition, if apartments are vacant – particularly in areas where the values are lower – property owners who don’t have the money to make speedy repairs are more likely to let maintenance slip.
“When vacancies creep up and you don’t have the cash flow, the first thing to go is the maintenance,” he said. “In the Boston area, we can’t afford to have mold problems.”
Aglaia Pikounis may be reached at apikounis@thewarrengroup.com.
