Help! My tenant is a drug dealer.

Real Estate Agent · Corona, CA · Member since 2018 · 15 posts · 9 votes

My husband and I purchased our first investment property. We renovated it and found tenants to move in on the first of this month. Today, someone randomly reached out to us and warned us about this tenant. That he is a nightmare tenant. That he also has a record of trashing properties and that he is a serious drug dealer.

Any suggestions on how to move forward with this situation? Any advice would be greatly appreciated. Thanks so much.

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Anna Sagatelova

Property Manager · Cleveland, OH · Member since 2019 · 446 posts · 566 votes

Hi all, PM here.

If a PM was responsible for the screening, their screening procedure absolutely should include past residential history with contact information for each landlord. You should ask them about their full process and go with a PM that has a comprehensive screening procedure that goes beyond a background check.

In any case, you have a lot of people here saying that a background check tells you more than a random stranger/neighbor, and I'm here to say that is not always the case. There are plenty of drug dealers out there with no criminal record. I'm not saying you should trust every accusation, just that a clean background check is not alone a reason to dismiss a neighbor's complaint. It's just very unclear who this person actually is. Is it a former landlord? A former neighbor? A former roommate? A competing drug dealer?

Finally, read the lease this tenant signed. Aside from when it expires/whether it's M2M, do you have a "drug free housing" clause/addendum? That can be a way for you to evict immediately, if the issue turns out to be real.

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Casey Conner
New to Real Estate · Knoxville, TN · Member since 2019 · 23 posts · 5 votes
6y
@Jocelyn Doumani
What’s his rate? (I’m sorry I couldn’t be more helpful.)
0 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
6y
Originally posted by @Jocelyn Doumani:
My husband and I purchased our first investment property. We renovated it and found tenants to move in on the first of this month. Today, someone randomly reached out to us and warned us about this tenant. That he is a nightmare tenant. That he also has a record of trashing properties and that he is a serious drug dealer.
Any suggestions on how to move forward with this situation? Any advice would be greatly appreciated. Thanks so much.
Boat's already in the water. Nothing you can do about it now other than hope for the best.

1 Reply
Paul S.
Member since 2019 · 248 posts · 248 votes
6y
Come to Detroit - all the tenants are drug dealers lol. If he isn't bothering anyone leave him alone
7 Reply
Jill F.
Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
6y
First, to find out if you really have a drug dealer, find out how the "drug dealing" is impacting the other tenants. If you have drug dealers, and you ask other tenants, you'll have tenant complaints like these:
1. Excess traffic, the neighbors will complain about all the cars
2. Excess running up and down the stairs
3. Constant visitors.

If you go to the property at different times and don't see any evidence of these types of issues and you talk to the neighbors and they don't have complaints then you don't have a "serious" drug dealer. If you have one, it's unmistakable.
We've had multiple drug dealers :/ ; Usually we inherit them.
The good news is that drug dealers are rational so you can get rid of them with out too much trouble.

0 Reply
Jeremy Isaac
Member since 2020 · 18 posts · 17 votes
6y
Hopefully your PM asked for a copy of a drivers license before running the background check. Background checks will often come up clean when the prospective tenant uses a middle name as a first name, or better yet a fake name :)
1 Reply
Michael Kiley
Real Estate Agent · Cleveland, OH · Member since 2017 · 184 posts · 253 votes
6y
@Jocelyn Doumani
What kind of drugs is he selling? If he's short on rent, you could always barter.
2 Reply
Joe Carroll
Member since 2018 · 7 posts · 1 vote
6y
@Jocelyn Doumani go and tell him you have a problem and ask him to please leave and you’ll forget about it. I wouldn’t go to law enforcement unless you really need to, you never know who you are dealing with.
0 Reply
Casey Maeda
Rental Property Investor · 港区, Tokyo · Member since 2018 · 61 posts · 42 votes
6y
@Jocelyn Doumani I really hope the tenant doesn’t trash your property. Will be huge losses. You need to relook your screening process and try do annual inspections if that’s allowable throughout the lease term
0 Reply
John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
6y
@Jocelyn Doumani
I went through this a few months ago. And it was a nightmare. Cost me 26k in lost rent and damages. Three drive by shootings later (that blew out two of my new windows and the front t door) I got them out. My advice would be to get them out ASAP. Find something in the lease that shows they are violating it. Go over and change out an air filter or something and see if there’s something they are in violation of.
0 Reply
Richard Helppie-SchmiederPro Member
Flipper/Rehabber · DFW · Member since 2020 · 374 posts · 208 votes
6y
I agree with @Patricia Steiner. No harm no foul yet, but be sure to stick to the lease. If there truly is a concern, you can always send someone once a month to change the air filter and make sure everything is looking good inside.
0 Reply
Craig CurelopBusiness Member
Real Estate Agent · Post Falls, ID · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Jocelyn Doumani - I would recommend doing cash for keys. $500 and full security deposit returned if they leave in the next week. I suspect you can buy a lot of drugs for $500 :).
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2 Reply
Brian LucierPro Member
Property Manager · Fitchburg, MA · Member since 2012 · 148 posts · 201 votes
6y
@Jocelyn Doumani

Sad to hear about this situation. There are a lot of posts about the screening process, which is always a great start, but now that you have the issue, what can you do? Unfortunately sometimes unwanted renters slip through the cracks even after a thorough proper background check. At 200+ units, even we sometimes "win the lottery" with a bad renter. Here is what we do.
First, do not panic or overreact, stay professional.
Second, come up with a plan to make it "uncomfortable" for your entrepreneurial residents to set up shop on your digs. Your plan is to start a paper trail here. Installing exterior dusk-to-dawn motion detector lighting is always a good idea to keep all kinds of vermin off of the premises after hours. Especially the unwanted two-legged drug-dealing species. You can also instal inexpensive security cameras (no audio) from companies like Arlo, SimpliSafe, or ADT.
Third, is we we lovingly call the "Drug Letter". This is a letter that we use when we even suspect their are drugs at a property. We never disclose the leads of who mentioned the activity. If asked who filed the report, we simply respond "We have been notified by other residents in the neighborhood and are doing our best top keep you and your family in a safe place to live". Always protect the privacy of your source, or you will lose them.
We will print this on bright orange paper and posted on the entry points of the property so that ALL may see. Then we deliver a letter to each and every occupant in the building. Residents who are not involved with this activity will appreciate having the heads-up and that you have their back. The residents involved with this activity will automatically become paranoid, start to complain about their privacy, and as you ramp up your efforts, will eventually ask to break their lease because "there are drugs in the building".
Problem solved. They have moved out and the activity has decreased. Now, you must be extremely careful on renting to the next resident moving in. They may be "competitors" of your past tenants looking to set up shop in a popular known location to establish a new business. Either way, you will get through this. You own the property and the residents are replaceable if needed. Also check out federal laws and penalties to landlords for knowingly allowing such activities.
But start building that paper trail TODAY!
The DRUG LETTER:
Dear 123 Main Street Tenants,

There have been suspicious reports of drugs at this property. Please be advised that we are working closely with State and Local Police to monitor and resolve this situation. We have furnished them with keys to the common areas of the building and granted them permission to come and go as they please onto the property to investigate these complaints.

Please do not be alarmed if you see dogs on the property with the police. These are drug-sniffing dogs and are there to find and locate any illegal drugs that may be on the property. If drugs are found to be on the premises, we will prosecute to the full extent of the law and those tenants found to be connected to these activities will be asked to leave immediately, be evicted, and or have “no trespassing” charges filed against them.

We would also appreciate your observations reported to our office if there is any further suspicious activity on the premises. If you do see any patterns of behavior consistent with illegal drugs or distribution, such as the 5-minute frequent stops while someone waits in the car, please write down and give us the license plate numbers so we may forward those to the authorities for further investigation.

Again, we apologize in advance for any inconvenience or discomfort these actions or this letter may cause. But please rest assured. This type of activity in, on, around or at the premises will not be tolerated and these measures are being taken to keep the property safe, and to maintain and protect our tenants.

We truly appreciate that you live here in the rentals we manage and will continue to be diligent keeping the building where you live free from illegal drug activities for the well-being and benefit of the families that live there. Thank you again.
3 Reply
Richard Ferrero
Member since 2020 · 5 posts · 0 votes
6y
@Zachary Ray but it’s only an accusation. It needs to be verified before eviction.
0 Reply
Aigo Pyles
Flipper/Rehabber · Memphis, TN · Member since 2020 · 758 posts · 285 votes
6y
Is it confirmed? or mere accusations?
1 Reply
Walter Cuthbertson
Investor · Atlanta, GA · Member since 2015 · 12 posts · 3 votes
6y
@Jocelyn Doumani do you know this for a fact??? If so just don’t renew their lease. Problem solved. But you clearly didn’t do your Due diligence when you did the background check on the individual that you went to your house up to. This is a good lesson to learn but at the end of the day all profits all deposits and all financial journey in every day with green in your bank account focus on the bigger picture.
0 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
6y
Originally posted by @Michael Kiley:
@Jocelyn Doumani
What kind of drugs is he selling? If he's short on rent, you could always barter.

If you aren't willing to trade housing for cocaine are you really an investor?
1 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
6y
Originally posted by @Jill F.:
First, to find out if you really have a drug dealer, find out how the "drug dealing" is impacting the other tenants. If you have drug dealers, and you ask other tenants, you'll have tenant complaints like these:
1. Excess traffic, the neighbors will complain about all the cars
2. Excess running up and down the stairs
3. Constant visitors.

If you go to the property at different times and don't see any evidence of these types of issues and you talk to the neighbors and they don't have complaints then you don't have a "serious" drug dealer. If you have one, it's unmistakable.
We've had multiple drug dealers :/ ; Usually we inherit them.
The good news is that drug dealers are rational so you can get rid of them with out too much trouble.

Drug dealers are nowhere near as crappy as drug addicts ya'll. Just remember that.
1 Reply
James Hamling
Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
6y
Originally posted by @James Wise:
Originally posted by @Jill F.:
First, to find out if you really have a drug dealer, find out how the "drug dealing" is impacting the other tenants. If you have drug dealers, and you ask other tenants, you'll have tenant complaints like these:
1. Excess traffic, the neighbors will complain about all the cars
2. Excess running up and down the stairs
3. Constant visitors.

If you go to the property at different times and don't see any evidence of these types of issues and you talk to the neighbors and they don't have complaints then you don't have a "serious" drug dealer. If you have one, it's unmistakable.
We've had multiple drug dealers :/ ; Usually we inherit them.
The good news is that drug dealers are rational so you can get rid of them with out too much trouble.

Drug dealers are nowhere near as crappy as drug addicts ya'll. Just remember that.

And most tend to strive to keep things very low key.... or so I have heard, yeah I heard other landlords talking about that, yeah that's the ticket, lol.
0 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
6y
Originally posted by @James Hamling:
Originally posted by @James Wise:
Originally posted by @Jill F.:
First, to find out if you really have a drug dealer, find out how the "drug dealing" is impacting the other tenants. If you have drug dealers, and you ask other tenants, you'll have tenant complaints like these:
1. Excess traffic, the neighbors will complain about all the cars
2. Excess running up and down the stairs
3. Constant visitors.

If you go to the property at different times and don't see any evidence of these types of issues and you talk to the neighbors and they don't have complaints then you don't have a "serious" drug dealer. If you have one, it's unmistakable.
We've had multiple drug dealers :/ ; Usually we inherit them.
The good news is that drug dealers are rational so you can get rid of them with out too much trouble.

Drug dealers are nowhere near as crappy as drug addicts ya'll. Just remember that.

And most tend to strive to keep things very low key.... or so I have heard, yeah I heard other landlords talking about that, yeah that's the ticket, lol.

1 Reply
Albert Ng
Rental Property Investor · San Jose, CA · Member since 2015 · 401 posts · 221 votes
6y
Did you ask the "informer" to elaborate? Did you ask your PM about his screening procedure? If you pay a PM to handle this, he should had call previous landlords.
0 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
6y
@Jocelyn Doumani we always ask for the last two landlord's because the current one may lie to get rid of a bad tenant.
Also, if you're really concerned about their history, do a surprise visit to their current home - what's going on there will be going on at your property.
[email protected]248-209-6824
Logical Property Management4.9465 Reviews
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Steve Mandelbaum
Developer · Jacksonville Florida · Member since 2015 · 57 posts · 39 votes
6y
I would not beat yourself up too much over it.

PM or not it happens and it is part of the game.

I had a 75-year-old man receiving social security and a pension from a bread company act as a straw man. I don't think he needed the money. His nephew was a dealer and running his BID-NESS of out one of my places. Actually, it was really smart on his part.

The strategy to get them out goes like this.

1. Call the local police and ask if they will let you hire an off-duty cop with a cruiser.

2. Pay them to sit in front of the house on a Saturday night between 12-2.

3. Do it a few other random times over the next week or two.

4. Call the tenant and sound nervious and ot of breath. Tell them the cops keep calling me that there are drug sales going on in my rental. I ADAMANTLY TOLD THEM THERE IS NO WAY, JOCELYN IS NOT LIKE THAT. I don't know what's up but they are out to get you.

5. At this point they want to leave or close down their sales.

6. Give them their security deposit back and move on.

The straw man moved out when I told him if they charge him with a crime while on Social Security, he would lose his benefits.

GOOD LUCK!

Originally posted by @Jocelyn Doumani:
My husband and I purchased our first investment property. We renovated it and found tenants to move in on the first of this month. Today, someone randomly reached out to us and warned us about this tenant. That he is a nightmare tenant. That he also has a record of trashing properties and that he is a serious drug dealer.
Any suggestions on how to move forward with this situation? Any advice would be greatly appreciated. Thanks so much.

0 Reply
Steve Mandelbaum
Developer · Jacksonville Florida · Member since 2015 · 57 posts · 39 votes
6y
I would not beat yourself up too much over it.

PM or not it happens and it is part of the game.

I had a 75-year-old man receiving social security and a pension from a bread company act as a straw man. I don't think he needed the money. His nephew was a dealer and running his BID-NESS of out one of my places. Actually, it was really smart on his part.

The strategy to get them out goes like this.

1. Call the local police and ask if they will let you hire an off-duty cop with a cruiser.

2. Pay them to sit in front of the house on a Saturday night between 12-2.

3. Do it a few other random times over the next week or two.

4. Call the tenant and sound nervious and ot of breath. Tell them the cops keep calling me that there are drug sales going on in my rental. I ADAMANTLY TOLD THEM THERE IS NO WAY, JOCELYN IS NOT LIKE THAT. I don't know what's up but they are out to get you.

5. At this point they want to leave or close down their sales.

6. Give them their security deposit back and move on.

The straw man moved out when I told him if they charge him with a crime while on Social Security, he would lose his benefits.

GOOD LUCK!
0 Reply
Greg Koszkul
Member since 2020 · 72 posts · 17 votes
6y
I am probably coming into this with not enough experience to understand the underlying issue here. Why would we assume the best case scenario with this type of situation rather than play it by suspicion and keep tabs on the tenant to make sure he does not create a major inconvenience for his neighbors and potentially significant damage to the property?
0 Reply
Bob B.
Investor · Jasper GA · Member since 2015 · 1k+ posts · 1k+ votes
6y
Did they also say that Russia interfered with the election? I'd spend a couple of $ and do a criminal background check on him before sending letters or confronting him.
1 Reply

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