Seven ways to detect if your investment property is being used as a drug lab

Illegal drug labs set up in rental properties can cause fear for property investors, particularly as the clean up costs can be significant, not to mention a hefty repair bill in some instances.

While it's uncommon for tenants to be engaged in this type of activity, it's worth every property manager and investor (particularly self-managing landlords) to be keeping an eye out for any suspicious activity.

Terri Scheer Insurance's executive manager Carolyn Parrella explains that whether it's cannabis, methamphetamine or ecstasy, illegal drug cultivation has specific signs that astute investors can look for.

“Temporary drug laboratories in rental properties can be difficult to detect if you do not know what to look out for,” said Parrella, even though tenants will go to significant lengths to hide this type of activity.

For those who do find evidence of a drug lab, investors should first contact their property manager, and also the police.  Obtaining insurance coverage often requires a police report. A tenant will be required to vacate, after which time insurance assessors can determine the damage.

In the meantime, here are the five things to watch out for:

1. Regularly inspect 
   
   There's no way to figure out whether illegal activity is being undertaken if you are not regularly inspecting. 
   
   Detecting temporary drug labs can save you money, particularly if they're found early, as this will help mitigate loss and will allow you to lodge an insurance claim as soon as possible, said Parella. 
   
   “It takes three months to cultivate a hydroponics crop so carrying out quarterly inspections will increase the chances of detecting any illegal activity as soon as possible," she said. Ensure you undertake routine inspections.
   
   
2. Neglect or lack of furnishings 
   
   The first thing you should be looking for at an inspection is a lack of furniture, and/or signs of neglect.
   
   While some certainly live with the bare minimum, it's unusual to see a rental that has a lack of personal effects. 
   
   “When conducting an inspection look for signs that the property is being lived in. Illegal drug manufacturers generally do not live at the properties they use to cultivate drugs, therefore the premises may appear under furnished or neglected," she explains. 
   
   It is always worth asking the tenant if they've been away, and looking for another reason before assuming they run a drug lab (a stretch if this is the only suggestion can see).
   
   
3. Look for modifications 
   
   Creating a drug lab isn't exactly a simple task. As anyone who watched Breaking Bad can tell you, it requires some specific equipment, materials and products. 
   
   “Some hydroponic systems or temporary drug laboratories require specific modifications to the property,” she said. 
   
   You want to be on the lookout for tampering with the property. Pipes and hoses are often required in hydroponic setups, that filter through the roof or a man hole. Holes in the ceiling can be a signal of a drug lab set up. 
   
   “It is also a good idea to check whether the meter board has been tampered with or rewired. Holes in nearby walls or built-in cupboards are common in order to feed wires to a power source," she advised.
   
   
4. Look for specific items 
   
   We can't all know what every item is that someone else owns, however an abundance of unusual items may suggest that something untoward is happening. 
   
   “Certain items are commonly used to manufacture illegal drugs, including glass flasks, beakers, rubber tubing, gas cylinders, chemical containers, drums, drain cleaner, acid garden fertiliser and cough, cold or allergy medicine,” Parrella said. 
   
   A portable air conditioner is also frequently a key part of kit when cultivating hydronic crops, she said. Again, don't jump to conclusions - similar items have been owned in children's chemistry sets - however, use your common sense.
   
   Some of these items in combination may set alarm bells ringing.
   
   
5. Sealed/covered windows 
   
   Windows that are constantly covered or sealed during the day may also be a small suggestion that these tenants are looking for an extra level of privacy. 
   
   Windows covered in aluminium foil, in particular, however should have you concerned.
   
   
6. Bills
   
   If you're seeing unusual signs in the property, then it's time to turn to the bills. 
   
   “A dramatic spike in water consumption could signal drug manufacturing as more water is generally needed to cultivate drug crops," notes Parella.
   
   
7. Unusual wear and tear 
   
   Temporary drug labs can leave signs in unusual ways. Colour variations on the walls, such as behind hanging pictures or artworks, after a short-term period is worth a second look. 
   
   “If there are intense lights being used as part of a hydroponics set up it may visibly fade paintwork," notes Parella.