$479,500 Fine for pot grow house

Flipper/Rehabber · Sacramento, CA · Member since 2016 · 807 posts · 815 votes

So I went on an appointment to look at a house today where the owner had rented the property to his daughter, who then allowed her boyfriend to turn the property into a pot grow house.

I was absolutely floored to find out that the city was fining the owner $479,500 for something he had nothing to do with. The ARV is around $310,000 and needs a lot of work. How exactly does the city get away with doing this? This is extortion!!

Anyone heard of something this absurd?

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Stephen Shelton

Debary, FL · Member since 2017 · 110 posts · 113 votes

It's a good thing the tenants didn't murder someone otherwise he'd be facing a life in prison. 😌

It's almost like the government is looking for a way to raise revenue by fining what they believe to be the party with deep pockets instead of going after the people who actually broke the law. Unless the governmentcan prove in court that a landlord actively knows criminal activity is occurring they need to STFU.

I know what goes on in my properties to the extent that no one ever truly knows another person. I'd certainly see 479 marijuana plants in mine, but I shouldn't have to. My philosophy as a landlord is that the property is effectively the tenants' property while they are paying me to use it. If they are breaking the law then that should be on them, of course this is California where entrepreneurship is basically illegal and I shouldn't opine further on that, but a landlord should not be a babysitter. Tenants are adults for crying out loud.

Heck, if I grow marijuana in my own house does my landlord, THE COUNTY, get held responsible? Property tax confirms that a private individual does not own the property so why aren't the elected leaders in the county held to the same standard as the person who "owns" this house?

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Adam Gollatz
Rental Property Investor · Milwaukee, WI · Member since 2016 · 180 posts · 161 votes
7y
I bet that property management company isnt looking so expensive now, is it? Why was the city doing inspections to begin with?
0 Reply
Pratik P.
OP
Flipper/Rehabber · Sacramento, CA · Member since 2016 · 807 posts · 815 votes
7y
@Adam Gollatz I'm not too sure about the specifics but I believe the police found out about their operation and reported it to code enforcement.
0 Reply
Adam Gollatz
Rental Property Investor · Milwaukee, WI · Member since 2016 · 180 posts · 161 votes
7y
Having 479 pot plants over the limit is code enforcement jurisdiction and not a police action? Whats going on in California???
4 Reply
Stephen Shelton
Debary, FL · Member since 2017 · 110 posts · 113 votes
7y
It's a good thing the tenants didn't murder someone otherwise he'd be facing a life in prison. 😌
It's almost like the government is looking for a way to raise revenue by fining what they believe to be the party with deep pockets instead of going after the people who actually broke the law. Unless the governmentcan prove in court that a landlord actively knows criminal activity is occurring they need to STFU.
I know what goes on in my properties to the extent that no one ever truly knows another person. I'd certainly see 479 marijuana plants in mine, but I shouldn't have to. My philosophy as a landlord is that the property is effectively the tenants' property while they are paying me to use it. If they are breaking the law then that should be on them, of course this is California where entrepreneurship is basically illegal and I shouldn't opine further on that, but a landlord should not be a babysitter. Tenants are adults for crying out loud.
Heck, if I grow marijuana in my own house does my landlord, THE COUNTY, get held responsible? Property tax confirms that a private individual does not own the property so why aren't the elected leaders in the county held to the same standard as the person who "owns" this house?
6 Reply
Adam Gollatz
Rental Property Investor · Milwaukee, WI · Member since 2016 · 180 posts · 161 votes
7y
It'll be hard to prove that he had no idea or involvement since he was renting it to his daughter.
0 Reply
Lynnette E.
Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
7y
In CA they are very lucky that the government did not sieve the property for excess drugs. They easily could have! Must be is a very liberal county. Owner should not complain considering the other options the police had.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
kind of like when they seize meth houses. then sell them off.. I have bought a few of those from govmit.
owner lost them entirely.
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Tony F.
Investor · California, CA · Member since 2016 · 117 posts · 26 votes
7y
Which city was this in? We see this a lot in California. Usually the municipality will negotiate or nullify the fine as long as the nuisance is abated. Remember folks, Cannabis is now legal in California.. prison or property seizure is now out the window. Levying fines is the normal enforcement measure now used. But.. this is a code violation not a criminal offense, the fine must match comparable code violations or it likely won’t hold up in court if challenged.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Tony F.:
Which city was this in?
We see this a lot in California. Usually the municipality will negotiate or nullify the fine as long as the nuisance is abated. Remember folks, Cannabis is now legal in California.. prison or property seizure is now out the window. Levying fines is the normal enforcement measure now used. But.. this is a code violation not a criminal offense, the fine must match comparable code violations or it likely won’t hold up in court if challenged.
never been a municipal lien on the west coast that we could never negotiate down.. the cities know it when the liens surpass the value it does not one any good.
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Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
7y
Landlords are ultimately responsible for actions of tenants in this type of situation. Negligence is no excuse on the part of a property owner. They have the responsibility to insure their business is responsible and if not should be accountable. This situation exists only because the landlord allows it through negligence. If it is happening they are responsible. Part of the purpose of inspections is to monitor tenant activity to protect your investment from this very type of situation. Ignorance is no excuse.
Additionally rent is payed with money gained through illegal activities. Seizure of properties is very common.
@Stephen Shelton
"If they are breaking the law then that should be on them"
As business owners we have responsibilities to society. If we are providing a property to someone that is using it for criminal activities we are complacent if we turn a blind eye to that activity. Intentionally not wanting to know is the same as knowing and doing nothing about it. Choosing to be irresponsible and turning that around to blame government is illogical. Politicians, law enforcement, county inspectors are responsible for protecting the common good. Landlords are not babysitters we are business that should be doing the same.
2 Reply
Pratik P.
OP
Flipper/Rehabber · Sacramento, CA · Member since 2016 · 807 posts · 815 votes
7y
@Tony F. This was in Sacramento County.

@Thomas S. I would have to disagree. Tenants are grown individuals and are responsible for their actions. Businesses can't be held liable for what their customers do with their products. If you hit someone with your car after drinking, Ford isn't responsible for what happened, you are.
5 Reply
Brandon SturgillBusiness Member
Real Estate Broker · Columbus, OH · Member since 2013 · 3k+ posts · 1k+ votes
7y
@Pratik P. Like 6 legal plants wasn't enough???
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Jason Hirko
Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
7y
What's the street value of 485 plants? Maybe the owner can turn this in to a win??
3 Reply
Mary M.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
7y
anyone anywhere near that house knew what was growing there. the smell alone would of been very very overpowering. That is a LOT of plants.
This is a situation where the landlord is at fault. He knew. for sure.
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Alvin Sylvain
Los Angeles · Member since 2018 · 466 posts · 471 votes
7y
@Pratik P. OK, two points. One, you haven't bought this property yet, right? RUN AWAY! You can not rescue the owner here, and believe me, the owner is in a World of Hurt right now. Two, YES, the government can and will penalize the owner of the property where a tenant commits a crime, particularly a drug crime. Justly or unjustly, their view is the owner SHOULD know what's going on in their property, so the owner is equally guilty. Remember also, while marijuana is legal in several states, it's still against FEDERAL law, and many people, especially some in political office, still consider drugs to be WORSE than murder.
0 Reply
Pratik P.
OP
Flipper/Rehabber · Sacramento, CA · Member since 2016 · 807 posts · 815 votes
7y
@Alvin Sylvain I told the owner I wouldn't be able to make an offer until he settles things with code enforcement. This isn't something I want to get involved in.
3 Reply
Account Closed
Rental Property Investor · Sacramento, CA · Member since 2015 · 1k+ posts · 893 votes
7y
@Pratik P. but you can probably get SUCH A LOW PRICE if you don't make him settle them and you come to some agreement that closing is contingent upon your ability to settle the code enforcement issues on his behalf with some limited power of attorney :)
2 Reply
Pratik P.
OP
Flipper/Rehabber · Sacramento, CA · Member since 2016 · 807 posts · 815 votes
7y
@Account Closed What's interesting is, he's trying to get close to ARV for the property as-is. His thinking is that he needs as much cash as possible to pay this bill. He hired an attorney for 9k last week so we'll see what happens.

Btw, I emailed you so we can meet up!
1 Reply
Bryan S.
Rental Property Investor · CA · Member since 2018 · 225 posts · 180 votes
7y
@Pratik P. Lmao I had to comment “485 plants, which is over 6.” A few things to consider, if the seller pays code enforcement a grow house might have been excessively humid. Check carefully for water damage, electrical panels being illegally worked in etc etc.
1 Reply
Pratik P.
OP
Flipper/Rehabber · Sacramento, CA · Member since 2016 · 807 posts · 815 votes
7y
@Bryan S. Good point, I know electrical will need some work for sure. I wouldn't close a deal like this unless I had it professionally inspected anyway.
0 Reply
James Canoy
Kingston, NY · Member since 2017 · 252 posts · 138 votes
7y
@Jay Hinrichs From which site or is is just at auction?
0 Reply
Stephen Shelton
Debary, FL · Member since 2017 · 110 posts · 113 votes
7y
I don't doubt that is the law, especially in California, but I have a philosophical problem with the idea that what tenants do is simultaneously none of my business and 100% if my business.
For example if this tenant had not paid their rent then California would tell me to kick rocks and let the tenant stay until the sun goes supernova. If they grow pot then suddenly I'm responsible? It's makes no sense.
It seems that the party responsible in the eyes of the law is the party with the deepest pockets.
It reminds me of the slip-n-fall lawsuits that really demonstrate this. Example: my local grocery store strip mall recently cut down the trees in the little green spaces at the end of the parking areas. Turns out an elderly lady walked through, tripped on a root, and sued.
While I emphasize with the lady, I wouldn'thave given her a penny. How do you live for 70 years and not know roots affect the ground under a tree? Also, why was she walking there in the first place?
I can see the landlord/tenant relationship is more intimate than usual commercial transactions, but this is overboard...
...except for the fact that I now know about the tenant being the landlord's daughter. He had to have known therefore that means he enabled her.
And I don't mean to excuse being a lazy landlord renting to 💩 humans. I would definitely catch this in my own, but what if it wasn't such a blatant visual issue? What if I saw a punch mark in a door; would that mean I could/should be fined if the tenants are a couple and one was beating the other?
1 Reply
Stephen Shelton
Debary, FL · Member since 2017 · 110 posts · 113 votes
7y
Originally posted by @Mary M.:

anyone anywhere near that house knew what was growing there. the smell alone would of been very very overpowering. That is a LOT of plants.
This is a situation where the landlord is at fault. He knew. for sure.
Do the living pants have an odor or is it just the burnt parts?
I wonder who started to reply only to stop one they realized we'd wonder why they knew 😅😅😅
0 Reply
Mary M.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
7y
I bought a house that was a grow house. It STUNK. the neighbors were so thankful i cleaned it up.
In CA and OR growing small amounts of pot is legal. Even a few plants can be pungent but when you drive by large grows? It reeks. And I am allergic so i am not happy about the new legal pot laws :(
0 Reply
Account Closed
Rental Property Investor · Sacramento, CA · Member since 2015 · 1k+ posts · 893 votes
7y
@Pratik P. You lost me at "trying to get close to ARV" LOL.
I just emailed you back! Totally dropped the ball!
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