Tax and legal advice

Illegal activity rising in rental properties

By Reporter

The number of meth lab detections in rental properties is rising both in Australia and worldwide, according to REIQ.

A report by the Australian Crime Commission found that between 2010 and 2011 Queensland recorded the highest number of clandestine (meth) laboratories, at 293 – a number far exceeding those found in WA (171), NSW (87) and Victoria (63).

This is a major problem for landlords, REIQ’s Amanda Haack writes, as labs can cause significant damage to properties. Additionally, property managers and investors who self-manage their properties can be put at risk personally and professionally if correct response measures are not taken.   

Ms Haack writes that as the rate of lab detection in Queensland and other states grows exponentially, property managers should be on the lookout for clues.

“I have come to understand that illegal drug activity is not exclusive to outlying suburbs, and I've learned some of the indicators that most would overlook, despite them being a blaringly obvious clue to identifying a meth lab,” she wrote.

REIQ CEO Anton Kardash said that at at a recent REIQ property management conference, the Queensland Police educated property managers on the not-so-obvious indicators to be aware of during routine inspections.

"Some of the indicators included a tenant having pool chemicals and no pool, unusual chemical smells or extreme water usage," he said.

"Property managers were also advised to be aware of new rental applicants trying to avoid background checks or a new tenant willing to pay rent with cash in advance.

"The associated risks of such operations include material damage to the property and also the toxic risk to human life, particularly young children, and in severe cases, the consequences can be fatal," he said.

In the event of an allegation of negligence, it is reccommended that property managers should have documented proof of regular property inspections, and take action quickly.

In February, WA Today reported that a home in PerthPerth, TAS Perth, WA had to be fully demolished due to the extent of damage caused by drug manufacturing.

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Tune in to the latest episode of Property Showcase, the podcast with the inside track on the products and businesses that will help turbocharge your portfolio, maximise returns and make your overall investment experience seamless and stress-free!

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To hear more about these services, make sure to tune into this episode of Property Showcase!

 Make sure you never miss an episode by subscribing to us now on iTunes!

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Many investors who would have been successfully approved for finance last year are struggling now to either begin or continue their property investment journey because of the current financial climate.

In this episode of the Smart Property Investment Show, broker John Manciamelli and Momentum Media director Alex Whitlock joins host Tim Neary to discuss how APRA changes and the royal commission have resulted in a tighter lending economy and what that means for Australian investors.

They discuss what traps investors should avoid if they are trying to obtain finance, the four key growth drivers in a property market and unpacking trust structures while revealing one type of trust that you should miss.

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Katarina discusses about the team that she had help her along the way, why she thinks that you should never skimp on a good solicitor and accountant, and the red flags which tell her why buying a new property doesn’t necessarily mean buying a better property.

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The different reasons to start rentvesting

 

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Why buying new property doesn’t mean buying better property

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