Realty World - Sales and Rentals in Charlotte, NC

Cocaine House

Seems like something new everyday. Recently, we inspected a house that was vacated from 2 guys that had lived there for a year. It was in a nice, middle class neighborhood with the rent approaching $1,000 per month. When we performed the move out inspection, there were plastic garbage cans full of chemicals, white powder all over the floor of the garage, and about 200 plastic packets of something from Peru that were empty. When I looked up the english translation of what was on the packets, it turned out to be powdered Coca leaves (used to make Cocaine).

We called the fire department and they checked the chemicals and couldn't determine what it was, so they called the HAZMAT crew. They narrowed it down to kerosene in the barrels, and speculated it was a cocaine lab. So, the police were called, and they brought in the Vice Squad and they in turn brought in the SBI. The final determination was that the house was being used as a cocaine manufacturing lab. The upstairs had barely been lived in, and the SBI said that it is becoming common that drug dealers are renting houses for the purpose of manufacturing and/or distribution, and never actually living in the houses.

Bottom line is that the tenants were no trouble during their lease and didn't cause any "red flags" to pop up, so we had no idea that this was happening. When the final tally was complete, the owner had to pay to have the chemicals properly disposed of per the EPA's watchful eye -- to the tune of $1,000!

When something happens in our business, we always look at the situation and analyze as to how we could have prevented it from happening, or how we could have stopped it in progress. In this situation, the only thing that we have come up with that may have stopped it in it's tracks would have been an inspection at mid-lease. Our company policy is to inspect the property at the beginning and end of the lease, and at renewal if the tenant has decided to renew. However, we are considering offering the option of a mid-year inspection at the expense of the property owner. What do you think? Email and let me know your opinion. The inspection rate would be $50 and would be a walk-through type inspection (i.e. to check on the overall condition, living situation, occupants, pets, etc. This would not be an inspection to test the appliances, lighting, electrical, etc., but mainly to see how the property is being kept). I look forward to your responses.

Posted - 07/04/2010

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