Legal Obligations?

I really can't know how bad this is - but neither can you.

You've mentioned 'mould', so I'd be trying super hard to not have the tenant pursuing what their 'rights' are. Mould can be extremely hazardous to health (particularly if asthmatic or immuno-compromised), and if there is mould, it might be that they're entitled to be accommodated elsewhere - at your expense - until the place is again mould-free. It doesn't matter what % of floor area is affected, or if anybody can smell it, if there are mould spores in the air.

Given how much more expensive it might be if the tenant digs in, I'd be taking a conciliatory approach.

I think when your PM tells you that the PM is being 'nice and friendly', that's code for 'reasonable', and a hint from your PM that you should agree to what they're asking for in your own best interests - because if the tenant decides to be 'unreasonable' it will likely cost you a lot more.

 

If everything is in good order, I can't see how they can refuse to pay you rent. Double check with an inspection of the unit yourself, take photo's to backup what the PM said and let it go to Qcat.

 

Thanks for the advice. Property is in WA. I’m in QLD. I’ve got to have faith in my PM I suppose.

 

Is the build 3 yrs old or the issue?

Is this a house or a unit?

Mortar does not need to be sealed, who advised that it should have been? Has the bathroom membrane failed which is more likely than wafer penetration through the external walls.

Is the affected room next to a balcony? Has that flashing & verandah membrane been checked?

@wylie suggested getting a mould specialist out, this will address existing mould spores. Not everyone is affected equally by mould.

Does your PM walk around with a moisture meter in their kit? Are they an expert in the unseen?

It's your property, it's just a risk you have to bear & a cost for you to wear.