Managing Risk in Investment Homes
Investing in a property is a great way to generate extra income, but it also comes with some risks as well. There are situations when the home you want to buy was involved in illegal drug activities or drug use, and that can become a problem. It’s important to know how to start managing risk of property as quickly as possible, to prevent any issues. Thankfully, it will bring in great results if you do this right.
What happens when an affected property is discovered?
This can be an issue for the rental home & land lords, as you might imagine. If the police disrupts any lab, then the DOH will receive a report. Then the DOH reviews the information and then the details are forwarded to the LGA with management advice. The home owner is contacted and then they will issue a legal requirement to manage the contamination or they might recommend voluntary cleaning.
Are there any legal responsibilities for agents, property managers or land lords?
Yes, according to the Health Act 1911, the owner is forced to repair or clean a contaminated property. In some provisions there might be a need for other people to take action, but this usually depends on multiple factors. Making sure that you follow a cleaning regime is very important. The DOH is recommending precautionary cleaning in between two tenancies, just to keep things on the safe side.
Many landlords end up using the DOH low level contamination procedure, which involves the use of an accredited cleaning company. In case you had to deal with a clan lab, you may have to deal with testing, reporting, validation and cleaning.
Signs there’s an illicit drug activity in your home
There are many things to look out for. One of them is having frequent visitors at very odd hours. Then there are other things like blackened windows, occupants are rarely see, the rent is paid in cash, there’s a lot of expensive surveillance and security equipment, the landlords can’t really have access often and so on. As a landlord, you need to start managing risk of property, so if your tenants are doing something illegal, you need to address that as much as possible. Doing that is a crucial aspect, and it will help bring in great results and an amazing experience.
It’s also a good idea to have a comprehensive insurance policy and in case you can’t get to the property often, have a property manager do that for you. Ensure that the property manager is doing routine inspections and they let you know if there are any signs if drug use. Handling that appropriately and making sure there are no issues is a crucial aspect here. That’s definitely something to keep in mind all the time.
You need to do everything you can to start managing risk of property seriously, because there can be severe consequences. Take your time and assess the property, see if it needs adequate cleaning, and then hire a DOH certified business for proper cleaning!