Monday, December 30, 2013

0 Don't Lose Your Shirt With Your Rental Property

By Helena Sandmin


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. This appears to be perfect, 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 simple solution for someone like this is to commit these crimes on someone else's property.

As marijuana grow ops are criminal operations, there is a risk of weapons being on the premises. They could be tampering with the hydro meter and the wiring, and if this is so, the risk of a fire in the home increases dramatically. Marijuana plants require a lot of water, resulting in high levels of humidity and mould.

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.

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

Tenants must always be screened thoroughly. It's one thing to have them complete a rental application, but if you don't follow up, and call their former and current landlords and employers, you could be setting yourself up for trouble.

Make sure they show you proper identification. Write down their information from the ID. Let them know that you'll be doing monthly exterior inspections. In addition to this, tell them you will be doing interior inspection occasionally after giving them written notice. 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. 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.

Recognizing red flags

You have cause to be wary when:

The tenants want to pay rents in cash. 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. The tenant doesn't pay much attention to the home's layout, and instead focuses on the electrical panel. If this is the case, they could be planning how they're going to alter the wiring to handle several 1000 watt bulbs. Being suspicious can be helpful in this situation.

They are unemployed, yet drive an expensive car. 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.

These are signs you should look for:

Black plastic, heavy curtains, bed sheets, anything covering windows completely, especially when they are pressed tight against the glass. Look for excessive condensation on the windows.

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

Humming noise from fans or other ventilation equipment.

An unusually high number of visitors, and if they always come and go late, it's more suspicious.

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

If the hydro meter looks like it has been altered.

Guard dogs are sometimes a sign of illegal activity.

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.




About the Author:



 

Insurance Answers Now Copyright © 2011 - |- Template created by O Pregador - |- Powered by Blogger Templates