The tenant you're considering looks like they are going to work out great. He informs you that you needn't bother coming by for the rent each month as he'll deliver the cash to you, and he isn't picky at all about the amenities in the rental unit. It seems pretty good, right? Wrong. You should recognize things like those to be giant warning signs.
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. The conclusion that these people come to is usually to do this on someone else's property to avoid personal risk.
Many growers keep dangerous weapons in the home in order to protect themselves from other criminals. 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.
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?
Tenants must always be screened thoroughly. A rental agreement is important, but if you don't follow up and contact the prospective tenant's former employers and landlords, it could be disastrous for you.
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. Knowing you're coming by monthly to pick up the rent cheque could prompt unscrupulous tenants to look for a less diligent landlord.
Let them know that you have good relations with the neighbors around the property. Make the tenants aware that you talk to the neighbors often. Undesirable tenants won't want that kind of pressure from neighbors looking in, so they may look elsewhere for their grow op. Be at the home on the date when the tenants are moving in. By being there on that date, you will be able to know if they are regular tenants just moving in their things, and if necessary you can talk to them about conditions of the rental agreement.
Recognizing red flags
Be wary if:
They want to make cash payments. If a tenant actually offers you extra money on top of the rent you are charging, it's a red flag that something is wrong. 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 drives an expensive car, but doesn't have current employment. After a tenant has moved in, you could find a grow op by doing outside inspections on a regular basis, and if you notice it early, you can avoid any further damage to your rental unit.
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. Look for excessive condensation on the windows.
Odd smells coming from the home like strong chemicals, or a skunk-like scent.
Humming noise from fans or other ventilation equipment.
Frequent visitors, often late at night.
Unusual items around the yard like discarded potting soil, wiring, bedding plant pots, or other equipment or debris.
If the hydro meter looks like it has been altered.
Signs indicating there is a guard dog on duty.
Marijuana grow ops can completely destroy your rental property leaving you with a massive repair bill, and often no insurance coverage. Do everything you can in order to protect your rental property from major damages.
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. The conclusion that these people come to is usually to do this on someone else's property to avoid personal risk.
Many growers keep dangerous weapons in the home in order to protect themselves from other criminals. 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.
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?
Tenants must always be screened thoroughly. A rental agreement is important, but if you don't follow up and contact the prospective tenant's former employers and landlords, it could be disastrous for you.
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. Knowing you're coming by monthly to pick up the rent cheque could prompt unscrupulous tenants to look for a less diligent landlord.
Let them know that you have good relations with the neighbors around the property. Make the tenants aware that you talk to the neighbors often. Undesirable tenants won't want that kind of pressure from neighbors looking in, so they may look elsewhere for their grow op. Be at the home on the date when the tenants are moving in. By being there on that date, you will be able to know if they are regular tenants just moving in their things, and if necessary you can talk to them about conditions of the rental agreement.
Recognizing red flags
Be wary if:
They want to make cash payments. If a tenant actually offers you extra money on top of the rent you are charging, it's a red flag that something is wrong. 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 drives an expensive car, but doesn't have current employment. After a tenant has moved in, you could find a grow op by doing outside inspections on a regular basis, and if you notice it early, you can avoid any further damage to your rental unit.
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. Look for excessive condensation on the windows.
Odd smells coming from the home like strong chemicals, or a skunk-like scent.
Humming noise from fans or other ventilation equipment.
Frequent visitors, often late at night.
Unusual items around the yard like discarded potting soil, wiring, bedding plant pots, or other equipment or debris.
If the hydro meter looks like it has been altered.
Signs indicating there is a guard dog on duty.
Marijuana grow ops can completely destroy your rental property leaving you with a massive repair bill, and often no insurance coverage. Do everything you can in order to protect your rental property from major damages.
About the Author:
We offer the only Regina Home Insurance policy that can be truly tailored to your needs. Get a quote and buy a policy online or by phone. Or check out our Home Insurance video.
No comments:
Post a Comment