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Michelle Masters thought she was a responsible landlord. She had managed a number of different properties over the years, including apartment complexes. She was always careful to screen potential renters to prevent any problems.
So Masters was understandably shocked two months ago when the Multnomah County sheriff’s office busted a methamphetamine lab built in the barn of a Southeast Portland property she thought was rented to a responsible tenant.
“I was completely blindsided,” said Masters, who manages the Quinella, an imported Moroccan clothing store located in Multnomah Village.
Sgt. Jason Gates, head of the sheriff’s drug lab division, agreed that Masters did nothing wrong. Some landlords occasionally look the other way when their tenants break the law, but he thinks Masters was tricked.
“She’s totally the victim in this case,” Gates said.
Even though Masters did nothing wrong, the property was contaminated with dangerous meth-related chemicals and was immediately declared uninhabitable. Oregon law states that she cannot rent the property again until it is cleaned up under a complex system that requires her to hire certified contractors whose work must be approved by a state agency.
And Masters is completely responsible for paying the cleanup costs, even if they include such expensive repairs as replacing carpets, walls and ceilings.
According to state statistics, hundreds of Oregon landlords are finding themselves in the same situation every year. Eighty residential meths labs have been discovered so far this year, including more than 20 in Multnomah County alone.
“We’ve done meth labs in every type of neighborhood, every type of motel. It doesn’t have to be a dive,” Gates said.
But all too often, property owners are paying much of the price for the illegal meth trade that law enforcement officials call the most serious drug problem in the state.
Fortunately for Masters, her insurance company agreed to pay the cleanup costs, currently estimated at $13,000. With any luck, she will only lose three or four months’ rent before the property is again usable.
Some landlords never recover their losses. Although most properties are eventually cleaned up, state records reveal seven Multnomah County locations that have been vacant for more than five years.
One of these, an older rental house at 4003 N.E. Bryant St., was declared uninhabitable in November 1998. It is scheduled to be demolished in the next few weeks.
The house is owned by Robert Jones, a Portland Tractor Inc. executive who works in the company’s office in Washougal, Wash. Jones considered the cost of cleaning up the home prohibitive, though today he can’t remember how much it was.
“If you had a relatively new home, it would be worth the money to clean it up and rent it again,” Jones said. “But with an older home, it’s just not worth it.”
After pondering his options for five years, Jones finally decided to demolish the home and sell the lot. Because the cleanup work will be done by the same company that demolishes the house, Jones says the cost is negligible.
“I don’t blame the state for following the law, but it’s something I’d rather forget,” Jones said.
Masters is still surprised by how quickly her property turned from sensible investment into serious liability.
“It was just a matter of weeks, but it could have been 24 hours. I’ve learned that’s how long it takes to cook the stuff,” Masters said.
Gates said other property owners should take that lesson to heart.
“Landlords have to be extremely careful who they rent to. Legitimate tenants can hook up with people in the meth trade. Or meth dealers can create false IDs with no credit problems. Landlords need to do very thorough background checks and follow up on the slightest irregularities,” he said.
Although Masters did not know it at the time, her rental property was ideal for an illegal meth lab. She owns a mobile home and barn on several acres in the undeveloped area between Portland and Gresham. Because it is down a long driveway, the location is shielded from casual observers.
Masters said the problem began when the renters, a longtime couple, broke up. The woman moved out late last year and the man brought in a new roommate without consulting Masters. Although she was annoyed, Masters let it slide because the pair continued paying the rent. But then the original renter left and the new tenant allowed other people to move onto the property before Masters knew what was happening.
When Masters stopped by to collect the February rent, she was shocked to discover new people living there. Her concern grew when she found they had installed a security camera on the front porch, padlocked the barn and plastered the property with “No trespassing” signs. Neighbors told her cars were coming and going at all hours of the day and night.
“I knew this was trouble,” Masters said.
Because Masters did not have rental agreements with any of the new tenants, she could have ordered them to leave under state laws that govern the relationship between landlords and tenants. But she suspected that something serious was wrong and instead contacted the sheriff’s office.
A team of investigators arrived on the scene just in time to see a green Mercury Cougar starting to drive away. They pulled it over and discovered meth lab components in the trunk. The driver, John Edwards Urbach Jr., was arrested on drug charges on the spot. He recently pleaded guilty to federal drug charges and is awaiting sentencing, said Assistant U.S. Attorney Johnathan Haub.
Based on the arrest, Multnomah County Deputy Sheriff Sean Christian asked Masters’ permission to search the property. Even before he entered the barn, Christian knew what he would find.
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