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Roll the dice, move your mice, the people talked the mostly loudly about threatening are the ones who dont even have a lawyer.If the jease isnt signed she can go pound sand.

My only advice as a Dad who has had to help my kids sometimes. Take photo's of everything. If you do end up in small claims court you what to be able to show what the living conditions where so it is not her word against yours. Document everything. If other people are living there and are complaining about the same thing have them write a letter saying the same thing. All this will help in court.

Does your written lease say what conditions the landlord must keep the premises in? If it says it must be clean, etc., you can tell her she breached the contract and therefore you do not owe her. If the lease doesn't say that, then you would have to fall back to local laws which protect tenants implicitly, but that is a much bigger battle.

People threaten to sue all the time. It doesn't mean it's going to happen. If it does, you can also threaten to counter-sue her for exposing you to an unhealthy environment. However, as Sgt Gus Laskaris said, you have to decide if all of your time is worth the actual rent cost.

For the record, I'm not a lawyer.