Question
of the week
Question of the week

Curious. Interesting. Informative.

02 July 2021

Under the weather

Sale, Purchase, Mortgage, Lease
Victoria

Asked

Residential tenancy - Termination

Our clients rent residential premises and have had a major issue with mould in the house. A mould inspector identified mould in the house however measures to address the issue were ineffective. The situation became worse over winter when the tenants became sick with respiratory complaints. The tenants obtained their own expert report which showed significantly higher levels of mould than indicated by the first report. Subsequently, the tenants moved out, however the landlord continues to request monthly rental payments.

What recourse do the tenants have regarding termination of the lease and reimbursement for the cost of the report? Can they pursue damages for the health issues suffered?

Answered

Thank you for the question.

It is reasonable for the tenants to vacate the property if it is unsafe due to mould.

The tenants may terminate the lease under s 91ZD of the Residential Tenancies Act 1997 as the property is not fit for habitation. The notice could be given retrospectively as the tenants were required to leave immediately to protect their health. The tenants should refuse to pay rent from the date they moved out.

The tenants may ask the landlord to pay for the report. If the request is refused, the tenants can claim that cost as part of any proceedings.

The landlord has likely breached a number of duties under the Act. For example the landlord is required to keep the property in a reasonably clean condition and maintain it in good repair. See s 65 and s 68.

To make those breaches actionable a breach of duty notice must be served under s 208. The proceedings are then brought under s 209. If the mould has caused serious illness then personal injury proceedings may be appropriate.

Regards

Mentor