It seems that your prospective tenant is just what you're looking for. 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. All of these things should start warning bells clanging.
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.
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. The humidity in the home goes way up during a grow because of all the water that is required during the operation, and mould is a common result.
Generally, if your tenants have caused this damage, your insurance will not protect you. 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?
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.
You should check their identification to verify who they are. And record the information. Inform them that monthly inspections of the home's exterior will be done. In addition to this, tell them you will be doing interior inspection occasionally after giving them written notice. 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.
Let them know that you have good relations with the neighbors around the property. Tell them that you talk to neighbours frequently. Undesirable tenants won't want that kind of pressure from neighbors looking in, so they may look elsewhere for their grow op. Arrange to be there on the move-in date. This way you can make sure they're actually moving in, and you can reinforce any special 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. A tenant spends more time checking out the electrical panel than looking at the home's other amenities. 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.
They are unemployed, yet drive an expensive car. 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.
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.
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.
Garbage or equipment, such as bedding plant pots, discarded potting soil, piping, or wiring lying about the yard.
If the hydro meter looks like it has been altered.
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. Protect yourself from devastating losses before they happen.
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.
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. The humidity in the home goes way up during a grow because of all the water that is required during the operation, and mould is a common result.
Generally, if your tenants have caused this damage, your insurance will not protect you. 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?
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.
You should check their identification to verify who they are. And record the information. Inform them that monthly inspections of the home's exterior will be done. In addition to this, tell them you will be doing interior inspection occasionally after giving them written notice. 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.
Let them know that you have good relations with the neighbors around the property. Tell them that you talk to neighbours frequently. Undesirable tenants won't want that kind of pressure from neighbors looking in, so they may look elsewhere for their grow op. Arrange to be there on the move-in date. This way you can make sure they're actually moving in, and you can reinforce any special 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. A tenant spends more time checking out the electrical panel than looking at the home's other amenities. 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.
They are unemployed, yet drive an expensive car. 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.
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.
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.
Garbage or equipment, such as bedding plant pots, discarded potting soil, piping, or wiring lying about the yard.
If the hydro meter looks like it has been altered.
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. Protect yourself from devastating losses before they happen.
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