Welcome to the “asbestos belt” of Sydney

GUEST OBSERVATION

You can just imagine a tour guide calling out through the loudspeaker: “Ladies and gentlemen, please put your masks on as we are about to enter the asbestos belt of Sydney. To our right we see 40 year old/plus homes riddled with asbestos and to our left…more homes riddled with asbestos and led paint”.

Ironically, the old James Hardie site where most of the asbestos came from in the first place, Harris Park/Parramatta, is being developed into a 3,000 unit apartment site with a possible remediation tag into the tens of millions of dollars.

For now, if investors that own properties in the “asbestos belt” of Sydney, believe that we are far removed from what is taking place in the US, well let me once again say; it is only a matter of time before we follow suit.

I am one to believe there will be civil action against many landlords within the next three to five years. I further believe the “asbestos belt” will undergo a major, possibly mandatory, transformation within five to 10 years. 

The properties found in what is termed as the “asbestos belt”, were built well over 35 years ago. Any home built pre 1986 contains asbestos, mainly in the lining of the “wet areas” (bathrooms, kitchens and laundries).

However, when you drive from Wentworthville and west to the mountains, you see the forestry of “fibro-homes” dominating the landscape. Not only do these contain asbestos sheeting in the “wet areas”, but contain asbestos fibre sheeting from floor to ceiling, even roof sheeting!

It doesn’t just stop there; then there is of course external laundries, garages and all mostly finished with led-based paints inside the dwellings. Understandably, asbestos if left alone and covered with paint or tiles doesn’t pose too much of a threat.

The problem is however found on two fronts; first, the desire by tenants to add fixtures and paintings, wall hangings and so on which are drilled into the walls. The second, there is the blatant disregard by some landlords to maintain their homes when the sheeting is compromised.

Is it the agent’s responsibility and what should they do?

I can envisage a couple of scenarios occurring soon. In one of these, the real estate agencies will be placed in the firing line when tenants take action against the landlord for health issues, a dangerous position to be in.

The second which can occur, is where agents fall short of their regulatory requirements to disclose possible hazards due to ignorance and/or neglect.

Ignorance from agents is no defence against any claim made by the tenant. Furthermore, blatant neglect to disclose hazards in the homes by agents can be a criminal offence.

Smarter agencies will soon be offloading managements belonging to greedy landlords that simply do not have an ounce of care nor intentions to rectify these hazards.  To these agencies I say well done in advance.

My call

My call at this stage is for government bodies and industry bodies to begin to take a more serious and pro-active approach to rectification work and remediation of some badly deteriorated homes in these areas.

Will we get to a stage where the government will just step in unannounced, isolate and demolish homes in the area that pose a health threat? I hope not, but who knows and it will only be a matter of time before we see claims surface more and more with people seeking compensation and answers. Will this be the catalyst for local governments to take action?

How will this affect your investment?

Simply, if the government will step in and pay 100% of the costs for the remediation, well, happy days.

In the meantime, you just have to sit tight and hope no tenant takes action beforehand. We know that the chances of any government monitory intervention at 100% is drawing a very long bow however.  

Take action now while costs are low and thus also preventing greater damage in future.

Suggested Tips To Protect Yourself

1. Don’t allow any work to be done to your home by tenants without first being contacted. Not even hanging paintings or other ornaments and fixtures in bathrooms. Although these are considered reasonable requests remain informed at all times.
   
   
2. Add to the special conditions attached to the lease agreement, your own stringent and specific performance duties around work being carried out both, in the home and external area.
   
   
3. Make sure the “managing agents” are well aware of your requirements and have these in writing, as specific performance orders on the management agency agreement.
   
   
4. Have a professional property inspection conducted and attend to the required repairs and removal of compromised asbestos sheeting immediately.

As you may well know, you cannot contract yourself out of legislative requirements. Therefore, I suggest that you seek legal advice with any matters of concern and I encourage you, if you are an investor, to consider immediate repairs to benefit both you and your tenants before claims are made. Prevention is better than cure.

EDWIN ALMEIDA is managing partner and licensee-in-charge of Just Think Real Estate.