The Effects of Drugs on Your Property

By Scot Aubrey

If you ‘ve ever been on a boat, you are familiar with the wake that is left behind on the water. Regardless of the boat’s speed, it is impossible not to disturb the pristine glassiness of even the most still water. The same concept applies to your properties when someone has used or manufactured drugs on the premises; there is always an impact, large or small, on the condition of the property, and that impact can be as far-reaching as the ripples of a passing boat.

A client recently called in to our offices to explain that she had been suffering some rather serious health problems since moving into a new property. After multiple doctor visits and testing for mold, they hired a professional to come in to see if the property had been used for drugs. Results came back that the kitchen held extremely high levels of methamphetamine residue while the common areas and bedrooms of the home also showed significant levels. Mystery solved, but that was just the beginning for this unfortunate tenant and for the unknowing landlord.

For landlords, the legal standard of “what you knew or should have known” is critical when applying it to a situation like the one described above. Here are a few practical applications for you to consider while your properties are occupied, but especially after the tenants move out and you are doing your post-occupancy inspections. There are always tell-tale signs of the residual effects of drug manufacturing or use on your property.

• Inspect anything porous; drug residue can find its way into many parts of your property, but especially any porous areas. Pay special attention to rugs/carpets, exhaust fans, HVAC vents and returns, and even plumbing. The P-traps in plumbing are notorious for being a place for drug residue to hide and wreak havoc.

• Yellow residue around the roof vents is one place even the most meticulous drug manufacturers overlook. Bring binoculars to inspect closely without having to climb up on the roof.

• Foil over the windows is one way that paranoid users and manufacturers try to hide their illegal behavior. Inspect each window for any left over foil that may remain.

• If the property smells like dirty socks, dirty diapers, or even ammonia, this can be a clue to illegal drug use and manufacturing taking place in your property.

• A high volume of visitors to the property, usually taking place during irregular hours and for shortterm visits, could be a sign that your property is being compromised. Being friendly with the neighbors of your properties can be beneficial as they can be the eyes and ears that you need for regular oversight of activities on your property.

• Drug users or manufacturers rarely, if ever, leave a property in good condition. The importance of having a consistent and timely move-out inspection will almost always give you hints as to how your property was used (or misused).

If you find any of these things, or if a tenant complains about any of these things, you have a duty to take those findings or complaints seriously. Again, the standard of “what you knew or should have known” comes into play. It is bad enough that your property may have been damaged by drugs; don’t double down on the problem by trying to ignore or hide it from the next tenant, or, if selling the property, the next owner. You are obligated by law to remediate the property to a safe and habitable state, regardless of the expense. control. Some areas are trying to repeal those bans, and many smaller communities are considering the controls, as their decades of mismanagement of housing development have caused a lack of investment that is intensifying an increase in housing costs. As industry representatives, it is critical to relay the short- and longterm impacts while also committing to and working through real solutions on housing rather than easy knee-jerk language. If in doubt about how to convey the concern, consider turning to something as simple as artificial intelligence chat-creator “ChatGTP” (chat. openai.com), as noted below:

The best way to avoid the “wake” of a bad tenant is to properly onboard the tenant, use in-person inspections of the property during tenancy, and perform a moveout inspection with the tenant prior to them leaving the property. There are no guarantees, but using these tools will help create a process that results in smoother sailing during your journey as a property owner.

Scot Aubrey is vice-president of Rent Perfect, a private investigator, and a fellow landlord who manages shortterm rentals. Subscribe to the weekly Rent Perfect podcast (available on YouTube, Spotify, and Apple) to stay up to date on the latest industry news and for expert tips on how to manage your properties.

Even AI gets it: Rent control is bad news

The following is a summary statement on rent control generated by AI:

Rent-control policies are designed to regulate the rental market by setting a cap on the amount of rent that landlords can charge for their properties. While the aim of rent-control policies is to provide affordable housing to tenants, there are several problems associated with these policies:

Shortage of Housing Supply: Rent-control policies can lead to a reduction in the supply of available rental units, as landlords may choose to convert their properties to other uses, such as condominiums or commercial buildings, in order to avoid the regulations.

Reduced Quality of Housing: Rent-control policies may discourage landlords from making investments in their properties, leading to a decrease in the quality of housing available to tenants.

Inefficient Allocation of Housing: Rent-control policies may result in an inefficient allocation of housing, as the low rents may cause tenants to stay in apartments that are too large or too small for their needs, or in locations that are not optimal for them.

Disincentives for New Construction: Rent-control policies can discourage developers from building new rental properties, as the potential profits may not justify the costs of construction.

Inequitable Distribution of Benefits: Rent-control policies tend to benefit current tenants, who are able to secure affordable rents, at the expense of new tenants, who may have to pay higher rents due to the shortage of supply.

Overall, while rent control policies may provide some short-term benefits to certain groups of tenants, they can also have significant long-term negative effects on the rental market*, including reduced housing supply, reduced quality of housing, and inefficient allocation of housing. As such, policymakers need to carefully weigh the costs and (lack of)* benefits of rent-control policies before implementing them.

(*Emphasis added)

Seller Finance Coalition

With new committees and leadership in the U.S. House, the National Real Estate Investors Association has hit the ground running with the Seller Finance

Coalition. A new bill is being prepared for a bipartisan and bicameral introduction, and due to years of foundational relationship-building, is progressing nicely. Several new congressional and senate offices were quite open to the idea that sellers should be able to sell more of their own properties with less government restriction. For more information about the SFC please visit sellerfinancecoalition.org. More to come on this important issue!

Three States are Legislatively Active

Maryland, Tennessee and Colorado are all in legislative struggles and we are engaging members in those states to communicate a message of concern about their issues. Ranging from bans on wholesaling to the repeal of rent-control bans, or the expansion of inspection programs around the state, the industry members in these areas need help. Please check out the Legislative Action Center on NationalREIA.org to take part.

Stay Up-to-Date

Stay up to date with current industry news and updates by visiting RealEstateInvestingToday.com. Likewise, visit NationalREIA.org/advocacy to stay up today with current legislation and governmental actions.