What if a tenant is dealing illegal drugs? What are the responsibilities of the landlord?
Did you know that if one of your tenants is involved in any sort of criminal activity while in your rental property, you could be held responsible? It's true.
The majority of the time, criminal acts involve a tenant dealing drugs out of the house. In some cases, rental properties have even been known to host Meth Labs.
If anyone is injured on your rental property due to a tenant's misconduct, the landlord and/or property owner could be sued for managing a rental property that constitutes a public nuisance and that threatens public safety. The landlord could also be fined and charged with a criminal offense if the landlord or property management company knowingly allowed the activities to continue.
On top of being sued, fined, and penalized, the value of your rental property will sink like a rock. These consequences are fairly consistent throughout most states. Keep in mind though, some states have additional, more stringent laws that could be devastating to your property. Colorado just passed a law stating that if Methamphetamine has been used in a property, it is automatically considered a Meth Lab. In Colorado, the laws regarding "Meth Labs" are very strict. You would have to pay a haz-mat company to abate the property costing thousands of dollars. In some severe cases, the property may be too heavily contaminated and could be bulldozed to the ground! Make sure you know your state laws!
As a rental property owner, you owe it to yourself to know every risk and consequence of housing a criminal tenant and take the precautionary measures to avoid such situations.
To keep criminals out of your rentals, learn the proper way to screen tenants. For more information on how to screen tenants read "How to screent for qualified tenants."