If you are managing property in an area with frequent criminal activity, taking the necessary precautions to protect your tenants and your property is a worthwhile investment. There are several steps that you can take that will both raise your property value and keep your retention rates from plummeting. Check out these links to help secure your property and the surrounding neighborhood.  

• Installing a home security system may be the most effective method of protecting your individual properties from criminal activity. Check out ADT’s website for more information on their award-winning security systems.
• The National Neighborhood Watch Institute provides inexpensive reflective signs to let potential criminals know that your neighborhood has a plan in place.
• If your property is in a high-crime area, it’s possible that theft and criminal activity are taking place on your property. Make sure that you and your tenants know their duties and risks.
• State Farm provides a fantastic guide to protecting yourself against home burglary — by heeding their advice, you’ll greatly diminish your chances of being burglarized.

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It’s a fact: Some neighborhoods are more safe than others. It’s also true that while a neighborhood may be quite safe at the time you purchase an investment property, things can go downhill at any time (happily, this phenomenon can work in the opposite direction as well). To make things even trickier, high crime rates aren’t necessarily limited to “bad” areas. Sometimes crime can trickle into nicer areas from surrounding neighborhoods, which is why it’s important to really do your homework before investing in a property—some hazards are simply not immediately obvious.

If, for any of these reasons (or completely different ones), you find yourself with a property in an area that is suffering from regular criminal activity, there are steps you can take to help make your property a safer place for tenants to reside.

Form a Neighborhood Watch Program
This is one of our favorite options, because it goes beyond just protecting your property and tackles the larger issue—making your entire neighborhood a safer, more enticing place to live. The results of accomplishing this are huge for you and include increasing property value and potentially lowering vacancy rates.

If your neighborhood does not already have a Neighborhood Watch Program, it does take some effort to start up but, again, the payoff is big. Begin by advertising the group to neighbors through fliers and notices in local publications (such as alternative weekly newspapers and online publications), and through social networking services. Once you have interest, set up a meeting and devise a plan, which includes safety patrols in the area during nighttime hours. It’s also worth having neighbors post signs on their properties advertising the fact that a neighborhood watch exists as this, in and of itself, can be a deterrent to crime. Contact your local sheriff and have them send a representative to the meeting to help provide tips and guidelines for creating a plan of action and the most safe, effective program possible.

The National Sherriffs’ Association has a number of great tips and tools for starting up and registering an official program in your area. You can also search USAonWatch.org to find out about any existing programs in your area.

Communicate with Your Tenants
There is a tendency to avoid advertising criminal activity in your surrounding area so as not to harm the reputation of your property or alarm existing tenants. However, if you are aware of crime in your neighborhood, it’s actually very important to inform tenants and to provide them with tips for safeguarding themselves and their property.

Much like a neighborhood watch program, having actively involved and alert residents can go a long way toward preventing crime. Just make sure that your communication is not alarmist—information should be provided in a straight-forward, factual manner and tips for protecting and safeguarding property should also be included in the same memo. (Also be sure to include contact information for local police and Neighborhood Watch Programs so that suspicious activity can be reported.)

Safeguard Your Property
Criminals often look for signs of neglect according to James Wilson and George Welling’s “broken window” theory. The gist of this theory is that if would-be criminals see signs of neglect, they are more likely to commit acts of vandalism or crime. Keep your property in good order and make it clear at just a glance that it is a carefully protected area. Install outside lighting (including motion detector lights), put up alarm system signs in conspicuous areas, and secure all doors and windows. Be sure to check out our previous blog post for more tips on safeguarding your property against crime.

There’s no quick fix for ridding an area of crime. But a concerted and consistent effort can definitely make a significant impact over time. Do what you can to make your property as safe as possible and recruit community members and tenants to do their part in keeping their eyes open, making your neighborhood a safer place for everyone.

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Property managers are responsible for ensuring their properties remain safe and crime free. Of course, the reality is that eliminating all crime may simply not be possible, but remaining consistently proactive about guarding against crime will definitely reduce threats to a property and its tenants. The following links will help you fight crime with the best of ‘em:

• Who doesn’t know McGruff the Crime Dog? Visit McGruff’s website for a fun lesson on crime prevention.
• Fight crime! Read about the Progressive Policy Institute’s crime fighting project.
• Although the effects might not be immediate, preventing future crime means investing in the children of your community today. FightCrime.org explains why investing in kids is so important.
• E-How has developed 5 steps to fight crime.
• Drugs and violence aren’t the only crimes you have to guard against … also be on the lookout for cyber-crime on your property.

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It goes without saying that no landlord wants to see illegal activity occur on his premises. Unfortunately, this doesn’t mean that it never happens. No matter how mundane a tenant’s behavior may seem, as a landlord it is your job to put a stop to any potentially illegal activity the moment it comes to your attention. Although your tenants are ultimately responsible for their own actions, depending on your state’s laws, you may actually be liable should one of your tenants inflict damage on other building occupants or even your property’s neighborhood.

Although you should be on guard for any sort of criminal activity on your property, drug dealing is one of the top criminal-related activities landlords are faced with. If you suspect a tenant may be dealing drugs on your property, be on the lookout for the following common signs:

• Excessive traffic in and out of a unit, with visitors staying for relatively short periods of time.
• Curbside “drop-offs” (i.e., if a tenant is frequently walking out to cars parked on the street outside of your property).
• Greater-than-normal nighttime activity.
• Drug paraphernalia (i.e., pipes and needles).

Should you suspect a tenant is dealing drugs (or committing any other sort of criminal activity) on your property, it’s imperative to respond quickly and decisively. Aside from endangering other tenants, landlords may potentially be held liable for public nuisance lawsuits by other tenants or neighbors. Not only that, but if your property gains a reputation for illegal activity, chances are the quality of your tenant pool will diminish, as good tenants leave for more safe living situations and a less desirable tenant pool becomes available to fill those vacancies.

We’ve said it before and we’ll say it again: The very best way to avoid behavioral problems on your property is to carefully screen tenants before signing a new lease. Run criminal and credit background checks, verify employment, and complete reference checks with former landlords. Although this process may be time-consuming, it’s the best way to avoid serious problems down the line.

In addition to protecting against illegal activities committed by your tenants, it goes without saying that you also want to do everything in your power to protect your property from criminal acts committed by outside parties. The following common sense measures will help ensure that your property offers tenants a safe environment and allows their minds to rest at ease.

• Make sure that the exterior of the property is well lit. You may want to consider motion-detecting lights.
• Make sure that all unit windows have latches—and encourage tenants to keep them locked.
• Prevent tenants from copying keys and distributing them to outside individuals such as family and friends. Many manufacturers now make keys that cannot be copied by general locksmiths. Also, limit each tenant to one set of keys and charge a fee for additional copies to help cut down on extra copies floating around.
• Alert tenants about any criminal activity in the neighborhood.
• Frequently inspect your property for necessary repairs that may represent potential security breaches (such as broken locks or windows).
• Take any tenant security-related concerns seriously and immediately take appropriate action.

Although criminal activity is out of your control to a certain extent, exercising due diligence is a great way to minimize threats to your tenants, your property, and yourself.

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It goes without saying that no landlord wants to see illegal activity occur on his premises. Unfortunately, this doesn’t mean that it never happens. No matter how mundane a tenant’s behavior may seem, as a landlord it is your job to put a stop to any potentially illegal activity the moment it comes to your attention. Although your tenants are ultimately responsible for their own actions, depending on your state’s laws, you may actually be liable should one of your tenants inflict damage on other building occupants or even your property’s neighborhood.

Although you should be on guard for any sort of criminal activity on your property, drug dealing is one of the top criminal-related activities landlords are faced with. If you suspect a tenant may be dealing drugs on your property, be on the lookout for the following common signs:

• Excessive traffic in and out of a unit, with visitors staying for relatively short periods of time.
• Curbside “drop-offs” (i.e., if a tenant is frequently walking out to cars parked on the street outside of your property).
• Greater-than-normal nighttime activity.
• Drug paraphernalia (i.e., pipes and needles).

Should you suspect a tenant is dealing drugs (or committing any other sort of criminal activity) on your property, it’s imperative to respond quickly and decisively. Aside from endangering other tenants, landlords may potentially be held liable for public nuisance lawsuits by other tenants or neighbors. Not only that, but if your property gains a reputation for illegal activity, chances are the quality of your tenant pool will diminish, as good tenants leave for more safe living situations and a less desirable tenant pool becomes available to fill those vacancies.

We’ve said it before and we’ll say it again: The very best way to avoid behavioral problems on your property is to carefully screen tenants before signing a new lease. Run criminal and credit background checks, verify employment, and complete reference checks with former landlords. Although this process may be time-consuming, it’s the best way to avoid serious problems down the line.

In addition to protecting against illegal activities committed by your tenants, it goes without saying that you also want to do everything in your power to protect your property from criminal acts committed by outside parties. The following common sense measures will help ensure that your property offers tenants a safe environment and allows their minds to rest at ease.

• Make sure that the exterior of the property is well lit. You may want to consider motion-detecting lights.
• Make sure that all unit windows have latches—and encourage tenants to keep them locked.
• Prevent tenants from copying keys and distributing them to outside individuals such as family and friends. Many manufacturers now make keys that cannot be copied by general locksmiths. Also, limit each tenant to one set of keys and charge a fee for additional copies to help cut down on extra copies floating around.
• Alert tenants about any criminal activity in the neighborhood.
• Frequently inspect your property for necessary repairs that may represent potential security breaches (such as broken locks or windows).
• Take any tenant security-related concerns seriously and immediately take appropriate action.

Although criminal activity is out of your control to a certain extent, exercising due diligence is a great way to minimize threats to your tenants, your property, and yourself.

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When it comes to locating the investment property that’s right for you, you’re shopping not only for the perfect property but also for the neighborhood that best suits your financial goals. In fact, before you even beginning to hone in on potential properties, it’s wise to first narrow your options by targeting a few specific neighborhoods in your desired area of purchase.

Begin by asking yourself what your ideal tenant pool looks like. Do you want to target the evergreen student population? If so, you’ll want to make sure that you’re looking in areas that offer easy access to nearby colleges and universities. Are you looking to cater to young professionals? Consider trendy or up-and-coming areas that are in close proximity to business districts and local restaurants and shops that will likely appeal to 20- and 30-somethings. If it’s families you’re after, narrow your search to quieter neighborhoods in desirable school districts.

Once you have the generalities out of the way, it’s time to drill down to some specifics that take both your current budget and your long-term investment goals into account.

Long-term prospects

Choosing just the right neighborhood requires that you are both a good historian and a good forecaster. Remember, this is an investment so you want to hedge your bets and utilize any resource possible to ensure that this neighborhood is not just a good fit today, but that it also will be five, ten, fifteen, or even twenty years down the line. Ask yourself these questions: Does this neighborhood have a good reputation? How has it changed over the past five or ten years? Have property values increased or decreased? Is this neighborhood up-and-coming? In decline? Stable?

Crime rate

Regardless of the tenant demographic you’re catering to, the safer a neighborhood is, the easier it will be to get good tenants in the door. Crime statistics are a matter of public record and can generally be found on your town or county’s local police website. If you are unable to identify this information online, give your local police department a call and they will be able to either provide you with the information you need or point you in the right direction.

Number of rentals vs. owner-occupied homes

It’s not uncommon for homeowners in primarily owner-occupied areas to view rental properties with some skepticism. While this doesn’t mean that you shouldn’t purchase in these areas, it does mean you should be aware that you may have to deal with some opposition should you purchase a rental in this sort of neighborhood. On the other hand, if you’re purchasing a property in an area that caters to renters, this may mean that there will be more competition when it comes to placing good tenants.

Parking

Particularly in urban areas, a general lack of parking can be a real headache for tenants. Be aware, however, that if you do locate a property that offers on-site parking in an area such as this, you will most likely be able to rent units at a higher rate. Likewise, in an area where parking can get sticky, residents are more likely to utilize public transportation than they may be in other scenarios—finding a property that offers easily accessible public transportation in this sort of instance can significantly increase the appeal of your units for potential tenants.

If you’re working with a real estate agent, chances are she will be able to provide much of this information for you. If you’re going it alone, though, don’t rely solely on the internet. While e-research is obviously a great way to narrow your search, first-hand experience is essential. Talk to friends and fellow landlords or homeowners in your target area and stroll or drive through the area on at various times of the day. Call local property management companies and look at rental sites to see what the average rent in these areas is. Because, as we all know, in the end it’s all about location, location, location.

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