This article is an edited extract from
Landlording in Canada Kit by Michael Drouillard, published by and reprinted here courtesy of Self-Counsel Press. To download the full e-book or for more information, click here.
Last time we looked at dealing with noisy and disruptive tenants – but on some unfortunate occasions, the problems can be worse than that.
All provinces empower landlords to evict if the tenant conducts illegal activities that could potentially damage property, endanger neighbours or jeopardize your interest in the property (for example, void your home insurance policy). Such activity includes using the property for the purpose of selling drugs, prostitution, or producing drugs such as marijuana or methamphetamines.
However, if you discover that your tenant spends Sundays trying to defraud Internet buyers and sellers on E-Bay or Craigslist, evicting on that basis likely won’t hold up in court or arbitration. Your property isn’t at risk for damage, and the neighbours aren’t in harm’s way.
You should be conducting periodic inspections of the rental property. Remember, though, that unannounced inspections are illegal, and could be dangerous. Serve the tenant with a Notice of Entry as required by provincial tenancy law. If you discover evidence of illegal activity, never confront the tenant – call the police.
If you receive a police report or other clear evidence of illegal activity that confirms your allegations, you must start eviction proceedings immediately. If you don’t, and if someone is injured or killed as a result of the illegal activity, you risk being dragged into a negligence lawsuit and being forced to pay damages.
Depending on the type of illegal activity, your provincial rental authority might qualify you for an expedited eviction (requiring the tenant to leave within days).
Marijuana Grow-Ops
Marijuana grow-ops in residential homes have increased in many areas over the past decade. In response, some municipalities now require an inspection of rental property as often as every three months. If it’s the law in your area then obey it. If you haven’t inspected your property periodically and if one is discovered, be prepared to face hefty fines in addition to your repair costs.
A majority of marijuana growers use and abuse a rental property to conduct their business, to avoid damage to their own property
How can you tell if your investment property is being used for a marijuana grow operation? According to the Richmond RCMP, you could look for the following:
- Homes that do not appear to be lived in (may have little or no furniture in the main living areas) but have occasional visitors (1 or 2 times weekly) at unusual hours
- Homes that are lived in but that never have lights on in the majority of basement windows
- Windows (particularly basements) that are always dark, boarded up or otherwise blacked out
- Condensation on darkened or blacked-out windows
- “Skunk” smell in the air, often at the same time each day/night
- Humming noise or motorized fan-like noises
- Discarded potting soil, small plastic “bedding” plant pots, 1 gallon plastic pots
- Scraps of heavy black plastic, 4” & 6” dryer hose, cut pieces of garden hose
- Lack of garbage: On garbage day there may not be any garbage put out to the curbside, since there may be no one actually living at the residence
- Late-night moving van: Many of these grow operations are set up in the early hours of the morning. Look for new neighbours that pop up overnight.
- Bright lights: High intensity (1,000 watt) bulbs are used by these growers to accelerate the growth of their plants. Sometimes these growers get careless, exposing the bright lights to the street/hallway. The colour of this light is brighter than the lights in a normal residence, and they emit a colour similar to natural sunlight
- Sounds of dripping: Water from hoses and watering systems may be heard dripping or running from neighbouring units (in multi-unit buildings)
- Sounds of construction: If there are constant renovations occurring immediately when people move in (sounds of banging and drilling) to a residence that doesn’t need many upgrades.
If your property has been used for a grow operation, the property likely suffers from mould and water damage, damage to the electrical system, and other structural damage.
Given the massive repair bill already faced by the landlord, it is tempting not to tell the municipality the property was used for a grow operation, since the municipality might demand that an environmental study be performed to ensure that the mould content within the home is within acceptable levels. You’ll have to pay for the study and needed repairs before you’ll be permitted to re-rent the property. All of this might cost tens of thousands in inspection fees, repairs, and lost rent.
But if the landlord hides this fact from the city, they could be out of pocket more than they ever dreamed. The municipality will find out in the end, and when it does, it will force the landlord to do the needed inspections and repairs and impose thousands in fines.
Periodic inspections and the use of tenant screening techniques taught in this series will virtually eliminate your risk of someone setting up a grow-op on your property. Don’t let the fear of a grow-op stop you from landlording.
