Tuesday, December 31, 2013

Don't Lose Your Shirt With Your Rental Property

By Helena Sandmin


You may think you've found the perfect tenant. He says he'll deliver the rent to you in cash each month, and isn't overly concerned with the amenities in the home. It seems pretty good, right? Wrong. Things like this should be huge red flags.

Rental units being used for marijuana grow ops in Canada have become an increasing problem. Homes can be damaged irreparably when a grow op is operated inside a rental unit. So, the perfect solution for them is to rent someone else's property for their criminal activities.

Since a grow op is illegal, there could be dangerous weapons on hand. Wiring is often tampered with and hydro meters can be bypassed, so the fire hazard in the home goes up significantly. Mould is a typical result from the excess humidity in the home because of the water required in growing marijuana.

In most cases, damage that tenants have caused is not protected by your insurance policy. Your property could be completely destroyed by fire, or could be unliveable due to mould or other modifications made for this illegal activity.

Since this is such a dangerous problem for a landlord, what steps can they take to reduce the chance that this could happen at their property?

Screening your tenants is very important, so do this carefully. Of course the rental agreement must be filled out, but you must be diligent in checking their references so you don't end up devastated financially, so call their former landlords and employers.

Have them present their government issued identification to you. Write down their information from the ID. Let them know that you'll be doing monthly exterior inspections. Also let them know that you will be doing periodic interior inspections in accordance with the law. Knowing you're coming by monthly to pick up the rent cheque could prompt unscrupulous tenants to look for a less diligent landlord.

Tell them that the neighbours are people that you know personally. Make the tenants aware that you talk to the neighbors often. If they know the neighbours will be keeping a lookout on your behalf, it could be enough to scare away tenants with criminal intentions. Arrange to be there on the move-in date. If you do this, you will be able to ascertain if they are truly moving in, and can go over the rental agreement once again with them.

Seeing the warning signs

You should be wary if:

Cash is how the tenants prefer to pay rent. A tenant with deceptive motives may offer you extra rent, and if this happens, it's highly suspicious. They're more interested in the electrical panel than in the layout of the home. A tenant who is overly interested in the panel might be considering if the home can handle 1000 watt bulbs to build the grow op. Be suspicious.

The tenant has no job, but has a pricey vehicle. If a tenant takes possession of the unit, regular inspections of the home's exterior could show you if a grow op is in operation, and if you catch if quickly, less damage will be done than if you miss the signs.

Look for indications like these:

Windows covered with black plastic, bed sheets, or heavy curtains that are drawn tightly shut, and are pressed up against the windows. Extra condensation on windows.

A strong chemical smell from the home, or perhaps a skunk-like odour.

The sound of equipment humming all the time, like fans or ventilation.

Many visitors to the home, late at night especially.

Strange looking equipment or garbage outside the home, or things like potting soil, wiring, and bedding plant pots scattered around.

Any unusual changes to the home's hydro meter.

Signs indicating there is a guard dog on duty.

Your rental property could be ruined beyond repair by a marijuana grow op, and you will be stuck paying for the damages in many cases because insurance may not cover you. Do everything you can in order to protect your rental property from major damages.




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