methsolutions methaffected property apia 2016

MethAffected Property

How a proactive approach can help

Know what you are buying and protect what you have from meth contamination

Joining the dots on P

• Why all the fuss?

• Routes to contamination

• Scale of the Issue

• What can be done

The perception

The reality……


Meth lab effects – Health Short Term Exposure – Acute

• Headaches

• Watery or burning eyes

• Nausea

• Burning skin

• Coughing or Choking

• Pain in diaphragm

• Feeling of coldness or weakness

• Shortness of breath / dizziness

• Decrease in cognitive function,

• Vertigo

• Convulsions

• Sleep disorders


Meth lab effects – Health Longer Term Exposure – Chronic

• Cancer

• Nervous disorders/Tremors

• Damage to kidneys and liver

• Birth defects

• Reproductive problems

• Death

• Children at proportionately higher risk


Meth Consequences – Landlord MethSolutions Baseline test $150 to $500

Forensic testing $2,500 to $3,000

Decontamination $10,000 to $50,000+

Retesting $2,500 to $3,000+

Fit out $5,000 to $50,000+

Loss of Rents $?,000

Loss of Value of Property $??,000

Reaction of Banks $??,000

Future Liability and Health $???,000


Meth Consequences – Tenant

MethSolutions Baseline test $150 to $500

Acute Health Effects $?00 to $?,000

Chronic Health Effects $?,000 to $???,000

Contamination of possessions $?,000 to $???,000

Alternative accommodation $?,000 +

Additional Travel Costs $?00

Loss of income $?,000

Emotional & Psychological harm $?,000

Reaction of other landlords


How Contamination Arises

• Use contaminates property

• Takes time

• All property types at risk

• Manufacture results in immediate contamination

• 32% of long term users try to make it

• +70% labs found in rentals

• Ministry of Health Guidelines 2010 0.5µg/100 sqcms


The scale of NZ’s meth contamination

Official police busts

±2000

Estimates of P lab totals 20,000 to

40,000

Labs move around

??,000 to ???,000

Use contaminates

property ???,000 to

???,000


The scale of NZ’s meth contamination

WHO HAS THE PROBLEM AUCKLAND?

As at 31 December 2015

WHO HAS THE PROBLEM NZ?

As at 31 December 2015


Meth & Meth Lab Indicators

Things that may indicate meth related activity • Unusual chemical odours

• Paint thinners/acetone • Cat urine

• Access denied to certain rooms • Neighbours notice unusual activity • Visitors at odd hours • Occupants are uptight/secretive • Rent always paid in cash • Damage to the property • Reports of violent/anti-social behaviour


Things that may indicate meth related activity • Blacked out windows/curtains always drawn • Rubbish – drug packaging chemicals • Security cameras installed • Cigarette butts outside • Chemical burns in garden • Corroded drains • Corroded light fittings • Drug paraphernalia • Missing lightbulbs



Things to look for on inspection • Litmus/Ph papers • Lab ware – equipment and paperwork • Containers containing unusual fluids

• Clear with chalky solids at bottom • Two layered liquids

• Used coffee filters with unusual colouring • White pasty or red/brown

• Cookware with white/crystalline powders • Hot plates near chemicals • Unusual chemical odour – how do you feel? • Stains on walls/ceiling/carpets – yellow brown • Burns of carpets



Property Management Limitations

• Actions of Partners Family and Friends

• Coercion of at risk people

• ‘Good’ tenants turning ‘bad’

• 48 hours notice for access – time to clean up!

• Willingness of communities to do nothing

• Courts bailing people to properties

• Police not following up with property owners


Spot the meth contamination


MethSolutions • NZs only proactive MethRisk Management business

• Purpose

“To help reduce the harm MethAffected property causes people”

• Core Service Offerings • Baseline testing – Basic screening • Insights Testing – More information • Detailed Testing – Clean up focused (CPINZ) • MethManagement – Investment/Commercial property • MethRisk Management - Real Estate Professionals

Why Meth Test On Purchase?

• Investment returns!!!!!!!!


Choosing a Meth Test


Protect what you own

• Window of insurance opportunity

• Ignoring the problem makes it worse

• MethManagement reduces risk

• MethManagement results in opportunity

• Improve bottom line performance

• Investment starts at around $10 per week


Does it work? • Baseline meth test on purchase

• Issues quantified/ruled out

• Right price paid

• Property marketed as being MethManaged

• Status used to assist tenant selection

• Rent lift $30-40

• Tenants stay longer

• R&M costs reduce

• Easier to manage

“A stunning return on investment”


Questions to Ask Yourselves • How are you currently managing the risk?

• What insurance do you have in place?

• How will you fund the fix?

• How is the liability landscape changing?

• What opportunities are you missing?


Summary

• Risk is real and significant

• Most people unaware

• Normal management not enough

• Proactive management essential

• Early adopters will find opportunities


Contacts

• Miles Stratford

• 0800 6384 522 (0800 METH LAB)

• [email protected]

• www.methsolutions.co.nz

methsolutions methaffected property apia 2016

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