You’re browsing your Facebook news feed and you see a news story with images of a familiar street. You open the story and it turns out a drug lab has been found on the same street as your rental property. Suddenly your phone lights up and your mates have seen the same thing. “Mate, hope it’s not your house…” The questions flood in, and you begin to worry about your investment property.
You try to find out as much as you can via police, neighbours and your property manager. To your dismay you discover police have just raided your rental and found a drug lab. In the days that follow, images of your street have been smeared across the media and linked to criminal activity.
Not a great outcome!
Those Darn Druggies
Drug use and drug manufacturing in the Perth rental market is becoming an expensive problem. Landlords are facing costly repairs; ongoing insurance claims; police investigations that are hindering the ‘re-listing’ process; and properties are losing value.
Neighbourhoods that were once considered safe, are slowly being infiltrated by those involved in unsavoury activity, and it is having a detrimental effect on the surrounding housing prices. Who wants to live next door to a drug lab?
Look Before You Leap
With high vacancy rates and the demand for rentals at an all-time low, it is very difficult to get and keep good tenants. Landlords often feel desperate to fill a vacancy and overlook tell-tale signs that new tenants could be bad news. Remember… Once that rental agreement has been signed, it can be difficult to evict tenants, even if your suspicions are raised.
Hindsight is 20/20 and in the case of screening new tenants, prevention really is better than the cure. The last thing you want to see is your rental property smeared across the media, because of criminal activity.
Signs your tenants could be planning or involved in illicit activity:
- Avoiding reference checks or limited refences available
- Tenants request ‘no rent inspections’ in return for several months’ rent upfront
- Failure to pay rent on time
- Complaints from neighbours about:
- unusual behaviour
- activity or visitors at odd hours
- high number of cars frequenting the house
- garden neglect
- strange smells emanating from the house – i.e. chemical or cannabis
- large amounts of chemical containers, or garbage
How we can help
At PEB Property Group, we look after our landlords. We conduct reference checks, and monitor your tenants’ activity whilst residing in your property.
When you sign up with PEB Real Estate, you will have one person that knows you and your property and will be here for the long term. Our senior Property Manager Michelle Anne Farbon is proactive and dedicated to providing a quality service.
Here's more information on our property management.
*This article is for general information purposes only. It is not intended as financial or investment advice and should not be construed or relied on as such. Before making any commitment of a financial nature you should seek advice from a qualified and registered financial or investment adviser.
PEB Property Group is a complete financial planning advisory service for Perth families. Offices are located in Inglewood and Willetton, Perth, Western Australia and offer - Financial Planning · Finance Broking · Property Management · Real Estate Sales · Property Investment · Development.
PEB Finance is a trading name of PEB Brokers Pty Ltd ACN 604 784 401 | Australian Credit Licence 389510 | Credit Representative Number 476313.
PEB Real Estate is a trading name of PEB Real Estate Pty Ltd (Licensee) ABN 33 604 199 617 | Triennial Number RA70508.
PEB Financial Planning is a trading name of PEB Group WA Pty Ltd ACN 142 958 254. Rebecca Howarth and Howarth (WA) Pty Ltd trade as PEB Financial Planning. Rebecca Howarth (ARN 244928) and Howarth (WA) Pty Ltd (ARN 433328) are Authorised Representatives of NEO Financial Solutions Pty Ltd. AFSL 385845 | ABN 64 141 607 098.