METH AND RENTALS
What Owners Need To Think About
Unfortunately, Methamphetamine (commonly known as ‘P’) is becoming more and more frequent in our society. Meth has been in NZ for the last 15 years and we have a high use rate compared with other countries. Having a home contaminated by meth can affect the insurance, re-sale value and the health and well-being of those who intend to live there.
Why is it important?
Those who own a contaminated property face a loss in several areas. This includes the value and sales price, as no one wants to purchase a ‘meth house’, losses in rent while the property is being decontaminated and the property may need to be demolished in some extreme cases. Here is a great article on the increase in meth testing rental properties and how it is done.
There are different levels of meth contamination. If the property has been used to manufacture, then it will show a high level of contamination, and a property where meth usage has occurred will show a lower level. The Ministry of Health provides guidelines on meth contamination. This gives landlords an idea on what levels require decontamination. See the guidelines here.
Insurance companies are dealing with an increasing number of claims for drug contamination which is resulting in higher premiums and excess levels. A majority of these claims involve rental properties and IAG received an average of 60 meth-related claims a month for the past year.
Why bother managing meth?
Landlords need to take a proactive approach to protecting their investment. The team at Pukeko Rental Managers are proud to manage Meth free homes in New Zealand.
We test for Meths, which attracts better tenants that can be confident they are living in a clean meth free rental property. Many tenants are willing to pay more for a healthy, contamination-free home and with regular testing, we tend to deter unsuitable tenants from renting a property. Feel free to give us a call to discuss managing meth in your property.