Protecting your investment property against meth contamination
An October 14 Australia New Zealand Bank media release has reported that 38 per cent of investors classed meth contamination as a major concern for their properties. Rightly so as this is an issue that we don't know the full extent of, which can be extremely costly and difficult to remedy.
It's not all doom and gloom though. With the right property investment advice and a careful approach, the risks of meth contamination can be minimised and the benefits of property investment maximised. Let's have a closer look at how this can be done.
Test, test and test again
Testing is your first and best protection against meth damage to your investment property. It's essential that you meth test before purchasing any property and between tenants. That way if you find that the property is contaminated later, you can avoid buying the property, or lay blame on your tenants and seek damages.
Don't be tempted by the companies offering overly cheap meth contamination tests and ensure whoever does your testing is professional and experienced.
Look closely at your insurance policy
Many insurance policies are reducing their cover for meth contamination as a result of a high number of claims. For this reason when seeking landlord insurance it's absolutely essential that you look closer at your policies cover for meth contamination. With a little research it should still be possible to uncover a policy that covers the entire cost of decontamination.
Take out both landlord and house insurance, as it's always better to have two lines of defence when dealing with contamination. Check the wording of your policies closely and strictly adhere to any testing requirements stipulated.
Hire the right property manager
Hiring the right property manager is your final line of defence against meth contamination.
Hiring the right property manager is your final line of defence against meth contamination and hopefully their vetting will help to ensure that your tenants don't cause any problems. On top of that it's always helpful for your landlord to have a knowledge of your insurance policy, and best practice when it comes to dealing with contamination.
They may be required to document everything that occurs, or organise quarterly inspections for your insurance to stand so make sure they are aware.
It's easy to be worried by scaremongers decrying the rise of meth contaminated property in New Zealand. But by taking a few simple precautions you can avoid all that unnecessary hassle, and instead focus on enjoying the fruits of your property investments.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert
Contact us now!