Meth Lab contamination

Discussion in 'Property Management' started by brettc, 17th Jul, 2018.

Join Australia's most dynamic and respected property investment community
  1. brettc

    brettc Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    283
    Location:
    Gold Coast
    A very hot topic in regard to rental properties both in Australia and New Zealand has been damage caused by Meth Labs. This is something we are dealing with all the time, and there is a lot of possibly ill-founded information floating around, so I thought it would be of interest to forum members (who don't receive our RentCover Report) to see a recent article which attempts to dispel some myths. You can view the article here.
     
    The Y-man, Propin, David Shih and 3 others like this.
  2. ChrisDim

    ChrisDim Well-Known Member

    Joined:
    13th Jul, 2018
    Posts:
    271
    Location:
    Sydney
    Great article. Thanks for sharing. Yikes!
     
  3. Danny370z

    Danny370z Well-Known Member

    Joined:
    1st Nov, 2015
    Posts:
    296
    Location:
    Sydney
    @David Shih interesting read. Something you can relate too?
     
  4. TSK

    TSK Well-Known Member

    Joined:
    14th Apr, 2018
    Posts:
    625
    Location:
    VIC
    *Shakes head*....regulate, tax and divert (to health services) - this is my belief for pretty much all drug use (be it caffeine, alcohol or whatever)
     
    Brady likes this.
  5. David Shih

    David Shih Mortgage Broker Business Member

    Joined:
    21st Jun, 2015
    Posts:
    1,034
    Location:
    Sydney
    Hell yea, especially just coming out of it...thankfully EBM did cover pretty much everything.
     
  6. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,572
    Location:
    Melbourne
    What a terrible article!
    Absolutely no information on how to build a safe and efficient meth lab
     
    See Change, Taylorc, datto and 9 others like this.
  7. BeeChrys

    BeeChrys Member

    Joined:
    24th Aug, 2018
    Posts:
    12
    Location:
    Sydney
    Hi guys! We have a house in Forest Lake and the tenants have just called our PM saying that they are starting to see black marks show up on the walls. Their friend (who is a painter) advised them that the marks are either marks from smoking meth in the house or making drugs in the house.

    The tenants are now concerned for their health (which I totally understand) and will be conducting a drug test. After speaking with my PM, they advised is the test conducted shows high levels of chemicals then we will have to terminate the tenancy without penalties and have the property stripped of the substances which could cost up to $30,000.00. Is this correct?

    Also, should the history of the house be explained to us by the agent? I'm starting to feel a little cheated by when we purchased. We did purchase the property from the bank and now starting to understand why it was painted and new carpets put in if this does come to be true.

    eems like you've gone through something similar?
     
    Tom Rivera and Michael Mitchell like this.
  8. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    14,015
    Location:
    Brisbane
    I'd guess the agent probably had no idea about the history of the house.
     
  9. Joynz

    Joynz Well-Known Member

    Joined:
    5th Apr, 2016
    Posts:
    5,755
    Location:
    Melbourne
    Or might just be mould or mildew.
     
    aussieB likes this.
  10. BeeChrys

    BeeChrys Member

    Joined:
    24th Aug, 2018
    Posts:
    12
    Location:
    Sydney
    I am hoping for this outcome. The house was re-painted just before we purchased in February this year. The marks are starting to appear now in the bedroom.
     
  11. BeeChrys

    BeeChrys Member

    Joined:
    24th Aug, 2018
    Posts:
    12
    Location:
    Sydney
    I just received a message from my PM who got in contact with the agent who sold us the property. He said that the property was empty and was a bank sale so I am assuming did not know the history. Fingers crossed for a positive outcome. This is our first IP and It's becoming a heck of a first property so far.
     
  12. BeeChrys

    BeeChrys Member

    Joined:
    24th Aug, 2018
    Posts:
    12
    Location:
    Sydney
    I think I am about to go through something similar. Thankfully I am with EBM too.

    Update: I spoke with the police station to find out if the property we purchased had any history of drugs, she said she could not disclose in too much detail the information about past tenants/owners but asked for the address and she would look this up on the computer. As soon as I mentioned the address - she said "Yup, I did not need to look up that address, I already know - that address was on our radar as high alert for drugs" - So I am now confident that the marks that the tenants are seeing come up are most probably going to be marks from drugs.

    The agent that we purchased the property from, left unexpectedly and not with any notice after we had signed the contract. I thought this was very strange considering we were in the middle of contract signing but did not think anything of it until now. Could this have been the reason why? Did he wanted to make a quick sale? Surely for this to be a bank sale, the bank would have known the history of it. Makes sense now as to why the place was re-painted fresh with new carpets. Was it to hide all this?

    Having a read online it states that any material facts should be disclosed to the buyers and if it was a a meth lab/house this is still considered a material fact. Does anyone know much information about this?

    I've contacted my solicitor as I am not too sure if we should/can take this further.
     
  13. qak

    qak Well-Known Member

    Joined:
    1st Jun, 2017
    Posts:
    1,677
    Location:
    Sydney
    What would make you suspect your property was being used as a meth lab?
    What would make a property a good place to have a meth lab?
     
  14. BeeChrys

    BeeChrys Member

    Joined:
    24th Aug, 2018
    Posts:
    12
    Location:
    Sydney
    The house was just re-painted before we purchased the property in February. The tenants have started to see black marks form on some of the walls in the bedroom. They had a friend (who is a painter) go and have a look and he suspected that it was marks which come up when the house was used to either smoke meth or make drugs.

    With that, we rang up the police station to find out the history and the officer told us that that house was known for drugs and was on their high radar. So with finding this information, the tenants have are getting a drug test done to the property and I would suspect that will come up positive with knowing the information we know now.

    I am not too sure what you mean by your second questions 'What would make a property a good place to have a meth lab?'
     
  15. qak

    qak Well-Known Member

    Joined:
    1st Jun, 2017
    Posts:
    1,677
    Location:
    Sydney
    Would the neighbours notice odours from making meth? Thinking units/flats, inner city houses, rural properties.
    How much equipment is needed? How much space is needed for supplies to make the stuff?
     
  16. hobartchic

    hobartchic Well-Known Member

    Joined:
    11th Sep, 2017
    Posts:
    1,513
    Location:
    Hobart
    Yes, the tenancy contract will be terminated automatically if the house is no longer fit to live in. The agent may not have known, drugs testing unfortunately should be something to consider as part of due diligence. Hopefully your insurer can help.
     
    Michael Mitchell likes this.
  17. hobartchic

    hobartchic Well-Known Member

    Joined:
    11th Sep, 2017
    Posts:
    1,513
    Location:
    Hobart
    No. Often these places keep to them selves, and keep quiet to avoid detection.
     
  18. hobartchic

    hobartchic Well-Known Member

    Joined:
    11th Sep, 2017
    Posts:
    1,513
    Location:
    Hobart
    Houses in a middle class neighbourhood. Somewhere that the police are less likely to patrol often.
     
  19. hobartchic

    hobartchic Well-Known Member

    Joined:
    11th Sep, 2017
    Posts:
    1,513
    Location:
    Hobart
    You can get drug testing kits for $100 for any house prior to purchase.
     
    Sonick and luckyone like this.
  20. Joynz

    Joynz Well-Known Member

    Joined:
    5th Apr, 2016
    Posts:
    5,755
    Location:
    Melbourne
    ‘Drugs’ can mean all sorts of things - a few dope plants in the vege garden, ecstacy tablets, heroin to name a few. Not just ice!

    Did the police actually specify ‘ice’ and did they say it was a drugs lab?

    Did they actually arrest anyone or was it just an admin person/constable ‘big noting..?
     
    Michael Mitchell likes this.

Price Accounting provide investor + developer tax services world and Australia wide for your property and all tax issues. Contact Paul@PFI below for our new client pack and quoted pricing + client portal access. Trusts, Co and SMSF are our specialty.