Looks like the landlord is really quite worried about getting authorities involved in anything, and surely he is much more worried about getting a negative review than you do (read a recent post here from a guy in LV for the landlord's perspective). You have a lot of leverage over him, use it, get a refund, move out and find a better one.

Unless of course you can't find a better one for the same money that you are paying now -- in which case you are getting what you are paying for, so relax and enjoy the savings :)