OfflineI have volunteered in a substance abuse clinic for well over 3 years now. During this time I have seen an increase in the use of meth. The sad thing is that I work at a clinic located in the suburbs. the fact is that meth labs are no longer restricted to the rural areas of America but have now infiltrated suburbia. Worse, most people operating these suburban meth labs are renters.
Meth is a caustic chemical that can ruin your investment. These labs utilize corrosive and flammable elements that at some phases produce the same gas used in concentration camps and are made worse by the fact that labs are commonly concealed in a closed off room or a basement. A pilot light on a gas water heater can ignite the entire property. In fact, 25%-30% of all labs exposed in the U.S. are detected as a result of fire or explosion. If your property has had a meth lab operating in it or people using it on a regular basis within that property, you might have to deal with more than you want too. Meth is toxic and can cause all kinds of ailments for those exposed to it.
After a lab has been shut down, the property is still contaminated with hazardous chemicals. Local health departments may get involved and thoroughly evaluate the property for hazards before permitting it to be re-inhabited, particularly by children. Long and short term health effects from these chemicals can include liver and kidney damage, neurological problems and increased cancer risk.
There are companies that specialize in meth lab clean up who can even provide a certificate of decontamination after cleanup, but the decontamination cost alone averages $10,000-$15,000 for a 1200-square-foot home. Prevention is cheaper and easier than repair and cleanup.
Happy Hunting
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How do you prevent?
You can't save the world but you can offer a hand up to a few along your way.
If it is a rental, your screeneing process must be very good, consistent and thorough. I have found that if a person has dealing or possession charges, it is a good bet that they will continue to have these problems, so I don't rent to them. I also do regular property inspections at random times throughout the year. If you smell an ammonia or very strong chemical smell in the property, chances are they are cooking meth, using it, or possibly on a rare occasion a very clean tenant
Also, you will want to have a contract that clearly identifies your tenancy rules, so if they have a bunch of people staying at the property for extended periods of time, you have the right to void the contract and get them out.
Show tenants that you are partnering with local law enforcement by displaying their decals, renting to them or have them partol the area. Encourage tenants and others in the community to be mindful of suspicious individuals and activities. Encourage nearby residents to alert you to any worries that they have
Your screeneing process and property checks are the best ways I know to avoid this problem.
I hope this helps.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Thank you for those tips! Worry about drug use/dealing and things of that manner is certainly something any landlord should take seriously.
I have seen some rentals in our area that, well lets just say they leave a whole lot to be desired and often makes you wonder why would anyone want to live that way!
Some places have this smell and when I asked my boyfriend what that smell was he said drugs and lots of them. Its just awful how people who use drugs will live! I mean dogs are cleaner!
You can't save the world but you can offer a hand up to a few along your way.
Prevention is the key, because it becomes very expensive after the fact to rectify the suituation. I know landlords who have been sued for renting a property out with meth contamination. I was looking at a house a few years ago that I saw on the news 2 years later. The news channel stated that the family who bought the home from an "investor" had become seriously ill due to the meth contamination. The new owners proceeded to sue the investor and won. The house was deemed uninhabitable until the meth was removed.
The sad thing is that the clean up is extreme, because meth will seep into the walls and contaminate them. You would need to completely gut the structure to the studs and then refinish it to resolve the meth issue.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
Thanks Coach, I have heard of Meth Labs, and how dangerous they were. But I had not thought about what happens to the actual property. This is something to consider for us as investors but for OUR Buyers families. We do want to make deals but I see most here want to HELP others. That is where I am at, I want to find suitable Housing for our Buyer families and children.
Bruce
WOW! How fascinating. This is a great topic with information on something that would never have crossed my mind. Thank You for taking the time to post it.
Angela