Friday, 3 January 2014

Avoids Expensive Risks With Your Rental Unit

By Helena Sandmin


The tenant you're considering looks like they are going to work out great. 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. If a tenant puts together a grow op in a residential unit, the home can sustain significant damage. So, the perfect solution for them is to rent someone else's property for their criminal activities.

As marijuana grow ops are criminal operations, there is a risk of weapons being on the premises. The risk of fire is greatly increased when wiring is tampered with, and hydro meters are bypassed. Mould is a typical result from the excess humidity in the home because of the water required in growing marijuana.

And, as a rule, any damage caused by your tenants is not covered by your insurance. Sadly, your property could be mouldy, unsafe, gutted, or possible destroyed completely due to a fire.

What can a landlord do to protect themselves from tenants that are looking to use the property for an illegal grow operation?

Make sure you screen your tenants thoroughly. 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. Record the information on the ID card. Inform them that monthly inspections of the home's exterior will be done. Also let them know that you will be doing periodic interior inspections in accordance with the law. When tenants know that each month you will be showing up to collect the rent cheque, the unscrupulous tenants will probably look elsewhere to rent.

Advise them that you know your neighbours. And let them know that you keep in touch with your neighbours. When tenants are aware that the neighbors will be talking to the landlord, criminal-minded tenants will probably move on to a different rental. 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 have cause to be wary when:

Cash is how the tenants prefer to pay rent. And if they offer you more rent than you're asking for, consider it a warning sign that something may be fishy. 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. Being suspicious can be helpful in this situation.

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.

Signs to look for include:

Black plastic, heavy curtains, bed sheets, anything covering windows completely, especially when they are pressed tight against the glass. More than the usual amount of condensation on windows.

Odours coming from the home, possibly skunk-like or chemical in nature.

Humming noise from fans or other ventilation equipment.

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.

Hydro meters that have been tampered with.

Aggressive looking guard dogs on the residence.

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. Take the necessary steps to minimize the risks of occurrences like these.




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