Illegal drug use and dealing in your rental property can cause problems for you as a landlord. You could be liable for the activity itself and, in some cases, liable for injuries or other harm to tenants or community members stemming from the illegal activity. Additionally, the manufacture of some drugs, like methamphetamine, can make the property uninhabitable for future renters — at the very least, it could decrease property value and make it hard to find new tenants.

There are several actions you can take if you suspect your tenants are engaging in illegal drug activity:

• Know the warning signs.
• Consult an attorney.
• Document issues.
• Contact the police.
• Serve an eviction notice.

Know the warning signs

If you suspect something is happening at your rental, it’s important to validate your suspicions. You don’t want to confront or accuse your tenant of something that has no basis in evidence of some kind, and even if you do have evidence you need to tread carefully to avoid a wrongful accusation.

Keeping in mind that warning signs may turn out to be benign, some red flags to be aware of include:

• Frequent traffic in and out of the unit. If your tenant is dealing drugs out of your property, they might have many visitors both day and night who only stay a short time. Keep in mind that there could be other reasons, including a very active social circle, for the visitors.
• Unusual odors. Drug manufacturing can produce ammonia or other caustic smells, and a marijuana-growing operation can often be detected by smell. If neighbors complain about smells coming from your property, check it out first to determine what the source is before jumping to conclusions or confronting your tenant about drug activity.

Note that recreational and medical marijuana use — and even growing in some cases — is legal in more and more states all the time. Even so, a growing permit generally requires facilities that aren’t available in a rental unit and are unlikely to be given for a rented private home.

• High utility usage. Growing pot or manufacturing illegal drugs often involves a higher and more constant use of electricity and water. Check the meter and monitor for sudden spikes in usage. Understand that even something like a new appliance or TV can also cause spikes in utility use.
• Cash payments. The drug trade runs on cash, and people involved in illegal activities avoid depositing money in a traceable bank account. But, there are also lots of people who prefer transacting in cash. To avoid this altogether and always have a record of your rental income, you can require payment by check or through an online payment portal.

Again, if you notice any of these signs, don’t jump to conclusions before getting more information. Instead, ask your tenant about them. For example, if your electric bill suddenly jumps, ask if they got a new appliance that might be contributing to the sudden increase. It’s best to have an open line of communication anyway, and a spike in your bills is always something you should keep on top of.  

Consult an attorney

If you’re unsure of your landlord rights or don’t know the best way to proceed, hire a local attorney who specializes in property law. Landlords can lose their eviction cases in court because of improper procedures. You don’t want to risk making a mistake when it comes to evicting a tenant.

Interview a few local lawyers about their experience with landlord-tenant disputes and evictions. Make sure you choose an attorney who has expertise in this area and is within your price range.

Document issues

If you do see evidence that points to illegal drug activity, start documenting it. Save your utility records that show the unusual usage pattern, for example.

Often the neighbors at your property will report an issue. If somebody contacts you with a concern about your current tenant, try to get as much information as possible. Don’t jump to conclusions or take sides. Stay objective while talking to any witnesses, and assure them that they will remain anonymous and that you won’t disclose their information without their permission. You could put them in danger if you do.

If it becomes necessary, you can ask the neighbor to write a letter that documents what they observed and send a copy to you and another to the narcotics department at the local police station. You need this documentation to support your claim if you proceed with an eviction or in consultation with your attorney if other legal issues arise.

Consult with local police

If you have well-founded suspicions about your tenant’s illegal activity, contact the narcotics division at your local law enforcement agency. They might already have something on record related to your residence, or they might be able to disclose relevant information to you.

If your tenant was arrested, it does not result in an automatic eviction — an arrest does not change a tenant’s right to occupy a property. You still need to evict them through a separate court process.

Serve an eviction notice if there’s clear evidence

If you have evidence to support your claim of drug or other illegal activity on the property, as is true with any breach of the lease agreement, it’s time to begin the eviction process. There are different types of eviction notices depending on the circumstances and your local laws, but the process for drug-related evictions is usually faster than a traditional eviction.

Follow the proper eviction procedures, and do not attempt to evict the tenant yourself. These are called self-help evictions, and they are against the law. Additionally, don’t expect the police to conduct an eviction — that’s not within their purview, and you need a court order to legally remove the tenant from your property. Stay in touch with your attorney as well.

Originally published on 9/20/2012.