Do you really know what's going on inside your property?

7 August 2026

As a landlord, you might think that as long as the rent is being paid and the tenants are not complaining, you have nothing to worry about. A simple “set and forget” investment, right?

Of-course, you already know this is not correct. Landlords have various obligations to maintain the property, pay council rates and land tax, and correctly managing rent increases. But did you know that you could pay a big price if your tenants are up to no good and using the property for criminal activity – even without you knowing?

Property inspections are much more than checking for broken taps or overgrown gardens. If your residential rental property is being used for illegal activities – such as a drug laboratory or a large-scale cannabis cultivation – you, as the owner, could face the seizure of your property under the Confiscation Act 1997 (Vic) and the Proceeds of Crime Act 2002 (Cth). These laws give authorities the power to restrain, freeze, and ultimately forfeit (sell) assets that are deemed to be "proceeds of crime" or have been used in the commission of a serious offence.

Even if you are not aware of any criminal activity, you may be caught by "willful blindness" – or a failure to take reasonable steps to prevent or identify illegal use. This may include a failure to conduct routine inspections (in Victoria, once every six months), or to properly assess the suitability of tenants when they apply to rent the property.

If you are facing seizure and/or forfeiture of your property, you must prove that you did not have knowledge, or ought not to have reasonably suspected, that your property was being used for criminal activity. If you (or your property manager) have not visited the property in six, nine, or twelve months, it may be difficult to argue that you did not turn a blind eye to the illegal activity occurring at the property.

You may find yourself in a similar situation if you have purchased a house or vehicle that was used for, or derived from criminal activity, and if you either had knowledge, or ought to have reasonably suspected, that it was. For example, if the house or vehicle an extremely low purchase price without good reason, or if it was purchased from people whom you had known to be involved in criminal activity.

If you or someone you know has been caught up in a proceeds of crime matter, make sure you act quickly as strict time limits apply. Contact Meerkin & Apel to make sure you have the best opportunity to get your property back.