Florida Homes and Properties

Archive for October, 2008

Meth labs are no longer restricted to the rural areas of America. They have now infiltrated suburbia. Meth cooks are capitalizing on the kind and harmless “image” suburbs provide and using them as a means of screening their dangerous and illegal operations.

Imagine an environmental catastrophe waiting to materialize in your rental property – a cooking procedure utilizing corrosive and flammable elements, that at some phases produces the same gas used in concentration camps, producing an odorous reaction of chemicals and toxic fumes, brewed by people who normally don’t have chemistry degrees…and you have the typical meth lab.

The meth lab is more dangerous than any legal laboratory or chemical manufacturing plant. Meth labs have been defined as an “explosion waiting to happen.” In fact, 25%-30% of all labs exposed in the U.S. are detected as a result of fire or explosion. A clandestine (secret) meth lab will likely have hazardous, flammable chemicals stashed away in every type of container imaginable–in closets, under stairways, under tables or even out in the open. Little of the glassware and equipment will be acceptable laboratory materials. Most will be improvised using casserole dishes, CorningWare, crock pots, etc.; Parts may be cracked and have jagged edges, sometimes covered with duct tape. Heaters, ovens or power strips could have frayed or exposed wires. Also, the gases produced by the operation are highly flammable, made worse by the fact that labs are commonly concealed in a closed off room or a basement. A pilot light on your gas water heater could ignite the entire property. More importantly, a majority of the people operating these suburban meth labs don’t own the property, they rent.

The After Effects of a Meth Lab on Your Property

There’s little known about the health effects of long-term exposure to contaminants left behind by previous methamphetamine labs. Property owners are advised to exercise extreme caution and use the safest possible cleaning practices in dealing with a former meth lab property. There are company’s that specialize in this type of clean up who will even provide a certificate of decontamination at conclusion of the cleanup process.

When drug users, dealers, or manufacturers live in or operate out of rental properties, neighborhoods suffer – and landlords pay a steep price. If the unit has been used as a meth fabricating lab, the decontamination cost alone is high, averaging $10,000-$15,000 for a 1200-square-foot home.

After a lab has been shut down, your property typically still is contaminated with hazardous chemicals. Residues of methamphetamine and other chemicals left over at a former meth lab are a concern for people who later occupy the property. For this reason, local health departments may get involved and thoroughly evaluate the property for hazards before permitting it to be re-inhabited, particularly if by children. Long and short term health effects include liver and kidney damage, neurological problems and increased cancer risks, even for people residing in former lab sites.

When a meth lab is detected in a multiple-unit dwelling, neighbors might be worried about their exposure to hazardous chemicals while the lab was still operational. Neighbors danger for exposure is generally very low, but it’s important to address any nearby residents concerns.

But there are also other profound costs that a landlord can incur as a consequence of meth activity on the premises. How tenants’ meth use impacts rental properties and landlords:
Methamphetamine attracts criminal activity – gang-related activities such as vandalism and violence Property values decline, especially once the activity drives the neighborhood to get a bad reputation Property damage results from tenant misuse and neglect, from retaliation, from fire, or from police busts Civil penalties could be imposed, including the forced temporary closure or even seizure of the property Rental income is forfeited during the eviction and repair periods Good renters may move out because of meth-related troubles, resulting in lost rental income Feelings of bitterness and anger damage relationships between neighbors and property managers Being forced to address with dangerous and threatening tenants generates fear and frustration
Signs of meth activity at a rental property:

Landlords might observe behavior in renters that suggests potential meth or other drug use and, possibly, drug dealing:
Failure to pay rent or utility bills Failure to keep the house in good condition
A combination of the indicators below may be significant.

Vehicle traffic and automobiles
Expensive vehicles that seem out of place for the area Regular car switching, particularly at unusual hours: people arrive in one car and leave in another Vehicles stopping for short stays – fewer than 20 minutes Regular late-night deliveries Considerable increase in vehicular traffic Suspicious vehicles: clean license plates on a dirty car, damage consistent with the car being a stolen vehicle
Foot traffic
People parking away from the premises and walking in Ungroomed, disoriented visitors or neighbors People taking in tools, electronics, or other items that might be used to sell or trade for drugs
Change in property conditions
Collections of garbage or junk Deterioration of the premises or yard Disassembling of vehicles or machinery (frequently the high gives meth users the energy to begin projects, but they lack the ability to focus enough to complete them)
Residents’ appearance and behavior
Ungroomed, dirty appearance Children show signs of abuse or disregard Pets are uncared-for, neglected Occupant is awake for days at a time Occupant sleeps for days at a time There’s frequent partying in the dwelling There are a lot of young visitors, even when the residents do not have children in the same age group as the visitors
Surroundings
Increased crime in the neighborhood, particularly crimes of opportunity like vehicle thefts and burglaries Other neighbors displaying strange behavior – hanging out at the drug house or defending the occupants, for instance
Steps you can take to prevent meth at your property:
Show tenants that you are partnering with local law enforcement by displaying their decals Conduct background checks on renters. Check references, credit histories, and, if you get the required approval, criminal background Inspect your property on a regular basis Encourage tenants and others in the community to be mindful of suspicious individuals and activities Encourage nearby residents to alert you to any worries that they have
How can a meth lab be cleaned up?

Property owners are responsible for proper cleanup and costs. Owners who choose to clean buildings on their own ought to be aware that household building materials and furniture may absorb contaminants and, in some cases, emit toxic fumes. Private cleanup contractors can and should be hired to conduct safe meth lab testing and decontamination of any property known or suspected to have been a meth lab.

The Florida real estate market was particularly hard-hit, even devastated, by the implosion of the housing bubble that characterized the past 10 years. The Miami market, like all urban markets, saw sharp decreases in home value, an increasingly tight credit market and the loss of jobs and reduced incomes caused many homeowners to put their homes on the market or, in the worst cases, fall into foreclosure and end up moving not of their own accord. This sad situation has been repeated all over the nation in the months since but signs of recovery, slow and steady, are beginning to show.

In Miami, investors have shown significant interest in purchasing distressed properties. Distressed properties are those that have fallen into foreclosure and are usually available at significantly discounted prices compared to their standard market value. Banks generally want to unload these properties as soon as they can and savvy investors, looking for a way to turn an economic tragedy into a source of new opportunity, have begun to take an interest in these properties.

Homeownership was touted, especially over the last 10 years, as the most sensible dream of any responsible American. However, many individuals-the majority, in fact-in the US are renters. These individuals prefer the freedom and excitement that comes with being able to change homes for only the cost of another deposit and the move. Investors in the South Beach, Miami Beach and Sunny Isles, Florida region seem to have noticed this market on the edges of their radar and realized that there is potential profit to be made in providing for the needs of this segment of society.

While owning a seaside home may be out of the financial range of most Americans, rending one may be well within it. Investors purchasing the distressed properties left in the wake of the real estate bubble’s utter collapse have begun purchasing these properties in the aforementioned areas, oftentimes at surprisingly low prices, and turning them into rentals. As more Americans have come to view a mortgage as a not-entirely positive way to manage their money, the market for rental homes is sure to increase. Purchasing these homes at distressed property prices and converting them into rental homes not only helps the investors, it helps many families get into a new home and possibly one they could never afford to purchase outright.