Powered by MOMENTUM MEDIA
realestatebusiness logo
Home of the REB Top 100 Agents

Police warn of drug gangs targeting Perth landlords

By Tim Neary
10 April 2017 | 10 minute read
cannabis850x400 apr2017

South-east Asian crime gangs based in the eastern states are renting homes from Perth landlords and turning them into indoor cannabis farms, causing extensive damage to the premises.

Consumer Protection has urged private landlords to be alert to this criminal activity, which is costing property owners tens of thousands of dollars in repair bills.

In the last seven months, 21 homes in Perth were rented by gang members.

==
==

They typically take out long-term leases using false identification and naming other gang members as referees. Once the lease is signed, they set a hydroponic cannabis-growing operation in the property.

This involves sealing doors and windows, and installing false ceilings to accommodate the lighting required to grow the cannabis, as well as ripping up flooring for a drainage system. The repair bill from one property alone is estimated at $70,000. Further costs to the affected landlords come from not receiving rental income while repairs are being carried out.

The power meters at the homes are usually bypassed and electricity is stolen from the grid. In one case where an owner had agreed to include the power cost in the rent, they ended up with an $85,000 bill.

WA Police are conducting an ongoing investigation and have so far seized cannabis crops worth $6 million from the properties. Police estimate the value of stolen power is about $1 million.

Acting Commissioner for Consumer Protection David Hillyard said until the investigations are concluded, landlords in Perth should remain alert.

“The gang members are exploiting the vulnerabilities of private landlords who, in the current market, may be desperate to get a tenant for their property and may not do thorough checks on prospective tenants,” Mr Hillyard said.

“If landlords have any suspicions that their property is being used for illegal purposes, they should contact police immediately.”

Do you have an industry update?
Subscribe
Subscribe to REB logo Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.