My tenant wants to break a lease because of a smell?
My tenants signed a lease to my house without seeing it. They lived in Oregon. The house is in Pennsylvania. I disclosed everything I knew about the property to them in an email. They accepted. The tenants moved out a few days before the new tenants moved in. Over those couple of days I cleaned the house from top to bottom. While I was in the house I noticed an odd smell and something coming out from under the oven. It is a gas oven so I was not able to move it before the new tenants moved in. The smell was like cat urine. The previous tenant did have a cat. I sprayed tons of cleaner under the oven. I tilted it and wiped underneath. I thought I had gotten rid of the smell. It was a hot summer day when the new tenant arrived and I had the windows open and two candles burning. The whole house smelled like cleaner. I had only a few hours a sleep. I was cleaning for days before she came. I was tired of smelling cleaner, so I thought a nice candle would be nice...
So a few days after the new tenant moved in I got a phone call. She said there was a problem in the kitchen and to please call her back. I returned the call, but got voicemail and I left her a message. She was returning to OR to get the rest of their stuff and returning in mid-August. So while she was gone my husband and a contractor headed over to the house to do some work on it. My husband noticed the smell and they unhooked the oven, cleaned the floor underneath of it, and rehooked the oven. He said that the smell was better.
Today I got a letter from our tenants' lawyer stating that they want out of the lease because they consider the house uninhabitable because the smell was making them sick and making their things smell. They also went as far as to say that they assume the smell was from some illegal activity. They want out of their lease. I don't really have a problem finding new tenants, but I don't feel like I should have to refund all their money? I feel like we could have resolved the problem?
What I really think is that the tenant doesn't like the neighborhood and wants out of the lease and is using this as an excuse? What can I do??