You don’t need to go far to find a horror story about Methamphetamine contamination! The GoodTenant team contacted a family member who owned a rental as an investment property and this is his story.
Two years ago I had my Auckland rental property meth tested, as one of our children needed the house. We instructed our property manager to organise a test at a cost of $300.00, and unfortunately it was positive. This was the start of a long and ultimately expensive process.
We immediately approached our insurance provider to get this fixed as quickly as possible. They informed us that we required another test at a cost of $2300.00; a “full lab screen” that led to a claim being settled.
The total time from the first test to settlement took approximately 7 months, the total cost by this stage including tests and loss of rent was just under $19,000.00 and the total insurance settlement was $25,000.00.
This left $6000.00 for remediation.
This is where it got very scary.
The costs quoted to remediate the house of contamination was in the region of $30,000. However, the cost to reinstate the house to a tenantable state would have been approximately $90,000 over and above the meth issues.
This meant a capital investment of approximately $130,000 and a further loss of rental income until the house could be rented again.
Considering the age of the dwelling and the additional sum required to reinstate, this did not sit well with us.
The stress of the mortgage commitments and no rental income to sustain them meant we needed to sell the property as a development opportunity for some other person. Interested buyers were very few and far between. The property remained vacant for two years thereafter.
Finally, after two years we decided to have the property retested in areas which exceeded the new guideline for Methamphetamine contamination and got the house back into tenantable state. The rental loss of approximately $55,000 cannot be recovered but that is the price one pays nowadays, being a landlord.