Meth or P related - it goes here, please.

[Hound]

Hi everybody,

We have some dear friends who have recently purchased a property, given they wished to purchase an investment.

With a view to eventually retiring there themselves.


They engaged a PM, who has subsequently had the property tested for meth contamination. Unfortunately the PM advises them it's tested at 37 mg per square metre. As such she cannot rent the place out.

Their solicitors are looking at the situation, given settlement was only a short time ago. It's likely the vendor is responsible for the said contamination. As it was his place of residence.

So we want to advise them the best way forward. We've never encountered anything like this before, and we really feel for them. From what I've researched it seems meth contamination is a highly arbitrary subject. All I've told them is to not freak out, & bide their time until the best solution is discovered.


In the meantime any suggestions from P/Ters are most welcome. Thanks!

[Perry]

Would getting a second opinion (on the P contamination figure) be a good and easy starting point?

If that's considered reasonable, also bypass the PM and let the owners directly interact with the tester people.

[Meehole]

Arrange to get it cleaned, retest it and then get it rented. I do a meth test at the start and finish of a tenancy. Peace of mind for me as well as the new tenants.

[Wayne]

The test was probably a composite one so now needs a comprehensive test to discover how much and where the contamination is.

[Learning]

A colleague recently went to stay in a motel for work. He couldn't help notice a strange odor in the room but didnt put it together until someone knocked on the window asking for drugs. Turns out the room had been let for the previous 3 months for almost double the usual rate, all in cash. The police found my colleague a room in a neighboring motel before having a lengthy chat to the manager.

[southern38]

I have cover under a special Landlords policy with Vero

[offo]

Hi

If the test has been done correctly you will have photo's of the areas where the test was taken with the relevant result. Look at the photo's with the result and do some home work. An example if the test has been taken in the area of varnished wood or a range hood the chances are thoes results will be higher. Also you need to look at the chemicals found not just the level. An acceptable test will show what chemical are present which should also assit you. I also have the contact for someone that can provide you with advise and has been involved with many "P" situations assiting people whom find it overwhelling

[southern38]

We had a P problem turn up in a property we rented and renovated. The guy who did the test for the buyer. We got the New Zealand Drug Detection Agency in and the test proved negative. We lost 9 potential buyers because the real estate agency told the buyers it was a P house even though it wasn’t and it had been completely renovated with new kitchen bathroom and carpets and all walls cleaned and painted. We lost $75,000 on the final deal, as the stress was too much for us.

We also took the agency to the NZREA and won, but they appealed, we won again, and they appealed again and we could not afford to do another appeal.

They ended up paying only $3000 for their mistake. We found out that, if they didn’t fight the case, they would loose their license. They have so much money they will just appeal and appeal till you can’t afford to proceed.

[Hound]

Thanks everyone for your replies. The secondary tests came in higher. A plan has been instituted, the buyers have decided to act swiftly to repair the damage. We will be helping as we can too, with a view to have the property ready to rent in the early new year. Being freshly redecorated, may mean higher rent in a competitive market. So all good. Also the expenses should be tax deductible.

Cheers, Hound

[donna]

We had a P problem turn up in a property we rented and renovated. The guy who did the test for the buyer. We got the New Zealand Drug Detection Agency in and the test proved negative. We lost 9 potential buyers because the real estate agency told the buyers it was a P house even though it wasn’t and it had been completely renovated with new kitchen bathroom and carpets and all walls cleaned and painted. We lost $75,000 on the final deal, as the stress was too much for us.

We also took the agency to the NZREA and won, but they appealed, we won again, and they appealed again and we could not afford to do another appeal.

They ended up paying only $3000 for their mistake. We found out that, if they didn’t fight the case, they would loose their license. They have so much money they will just appeal and appeal till you can’t afford to proceed.

Hi Southern38,

We have removed the naming of the businesses as that's our policy. However, I note you said you had insurance with Vero, so did you put a claim in and did they pay for the clean up etc?

Unfortunately your experience is not unique - deep pockets usually win, however there's only so many appeals allowed and the odds were in your favour, so it's a shame you didn't see it through or get an out of court settlement. For now though it's best to move on from the experience and of course you have our empathy in having to go through it at all.

cheers,

Donna

[donna]

Thanks everyone for your replies. The secondary tests came in higher. A plan has been instituted, the buyers have decided to act swiftly to repair the damage. We will be helping as we can too, with a view to have the property ready to rent in the early new year. Being freshly redecorated, may mean higher rent in a competitive market. So all good. Also the expenses should be tax deductible.

Cheers, Hound

Hi Hound,

Is the property local? Yep, cover all your costs via a rent increase - you can only do one a year now aye. (whoops - not so fast....not in law yet! I'm told)


cheers,

Donna

[Keys]

Yep, cover all your costs via a rent increase - you can only do one a year now aye.

cheers,

Donna

When did that come in Donna?

[Wayne]

When did that come in Donna?

That's what I was going to ask.
People seem to have gotten ahead of themselves on a few of the proposals.
The only one done and dusted is the letting fee.

[donna]

Yep sorry I thought it was in - but no just talking about it.

cheers,

Donna

[Hound]

Hi Donna, PM'd you.