Vacant property theft of hot water tank - alarm system

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Vacant property theft of hot water tank - alarm system

Bob CollettPro Member
Property Manager · Brecksville, OH · Member since 2014 · 486 posts · 464 votes

About a month ago, there was a break-in at a property I manage in Cleveland Heights near the East Cleveland border. The owner was interested in selling the property, so he gave the listing to a real estate agent. The agent placed a yard sign, and the break-in happened within a day or so.

The thief came in and stole the hot water tank.  I ask my plumber what an 8 year old hot water tank is worth.  He said about $40 for scrap.  They turned off the water and the gas, and did not do too much other damage. All in all, I felt pretty lucky... but I was scratching my head. Why would anyone go through all that trouble, cause me a significant expense, risk getting caught... all for $40.

Three weeks later I found out why.  After I had my plumber install a new tank, they came back in 10 days for the new tank... and this time they also took the rest of the plumbing.  I think it was a rather clever approach. The Cleveland Heights police told me that they get about three of these thefts every day... and even questioned how long I have known my plumber! It seems the thieves work with contractors, by supplying them brand new  hot water tanks real cheap.

Now I am paranoid... I can't put in a new tank for fear that they will come back.... the complete re-plumb is going to cost me about $2200 to $2500.

This business is all about having problems, then solving the problem, then systematizing the solution.  I decided to order a security system from Simplisafe for about $400.  Its portable, and does not need WIFI, only power, so once I get the place repaired and rented, I might move the whole system to my next vacant property.  It seems that our local crooks only attack vacant properties. There are certainly other alarm systems out there, but this one had just been referred to me, it is cheap, portable and no contract... so I think I have nothing to lose... unless it does not work.  

So be warned... if you get a break in at a vacant property and they still an old hot water tank... they are probably baiting you to put in a new one.

Comments welcome.

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Jason Dhanraj
Investor · Brunswick, OH · Member since 2016 · 18 posts · 4 votes
9y

@Bob Collett

one way is hire a plumber that is familiar with the area with a good record. This can lower the risk of having a problem of thief. My second is not the ideal and best choice but doable with the type of area you work with which is self installation.

New hot water tanks are about $400-$900 depending on the need for the client plus any pipe adapters for the tank if needed as well as paste or tape for sealing the utility pipes. the package include instruction about installation which was not bad out of a 5 point scale of difficulties i give it a 2.5 or 3. So this option has a little more work but you won't be paying $2500 just for a hot tank which I find a little high in price. Just replace a old tank Saturday morning which wasn't to bad for two people to lift a tank and install.

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  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    9y

    Insurance?

    Wait to replace the stolen tank.

    0Reply
  • Jad Boudiab
    Real Estate Broker · Cleveland, OH · Member since 2015 · 255 posts · 248 votes
    9y

    @Bob Collett I've always avoided placing yard signs in questionable areas, even when the property is for sale. Never had to deal with this problem.

    Thieves will try at anything they think is vacant, hope the alarm system keeps them away!

    Jad

    0Reply
  • Federico Gutierrez
    Realtor · Cleveland, OH · Member since 2015 · 2k+ posts · 857 votes
    9y

    Don't invest close to East Cleveland would be the moral of the story here.

    So in total what has this experience costs you or the owner?

    0Reply
  • Bob CollettPro Member
    OP
    Property Manager · Brecksville, OH · Member since 2014 · 486 posts · 464 votes
    9y

    I go where my clients have properties. Unfortunately with this property I "inherited" a slow-paying tenant, an eviction where the tenant waited until the last minute to move out, followed by the realization that the property was a drug house, 40 man hours of cleanup... then the two break-ins.  Way too expensive for the owner... and no fun for me.

    Lessons learned... the criminal background check aspect of tenant screening is of vital importance, as is mandatory inspections... If tenant is not paying, pull the trigger fast.

    1Reply
  • Bob CollettPro Member
    OP
    Property Manager · Brecksville, OH · Member since 2014 · 486 posts · 464 votes
    9y

    @Jad Boudiab I will document the installation of the alarm system for those who might be interested.  I ordered it on Friday... got word today that it is ready to ship.

    0Reply
  • Bob CollettPro Member
    OP
    Property Manager · Brecksville, OH · Member since 2014 · 486 posts · 464 votes
    9y

    @David Dachtera Of course we have insurance... but I will probably not make a claim. This owner has 7 properties insured with Foremost.  If we make a $2500 claim on a vacant property, it might be declined (or at lease raise a bunch of questions) and the premiums would be at risk to go up if we are lucky enough not to have the policies cancelled. But you are right to think insurance. I will probably at least ask my agent what would happen if we did make a claim.

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  • Jason Dhanraj
    Investor · Brunswick, OH · Member since 2016 · 18 posts · 4 votes
    9y

    @Bob Collett

    one way is hire a plumber that is familiar with the area with a good record. This can lower the risk of having a problem of thief. My second is not the ideal and best choice but doable with the type of area you work with which is self installation.

    New hot water tanks are about $400-$900 depending on the need for the client plus any pipe adapters for the tank if needed as well as paste or tape for sealing the utility pipes. the package include instruction about installation which was not bad out of a 5 point scale of difficulties i give it a 2.5 or 3. So this option has a little more work but you won't be paying $2500 just for a hot tank which I find a little high in price. Just replace a old tank Saturday morning which wasn't to bad for two people to lift a tank and install.

    1Reply
  • Bob CollettPro Member
    OP
    Property Manager · Brecksville, OH · Member since 2014 · 486 posts · 464 votes
    9y

    xxx

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  • Bob CollettPro Member
    OP
    Property Manager · Brecksville, OH · Member since 2014 · 486 posts · 464 votes
    9y

    @Jason Dhanraj Jason, thanks for the reply. I have a regular plumber, so I am not concerned about him. I manage too many properties to do my own plumbing. Plus, its best to have a licensed guy tdo the work, especially in communities that require it.  Sorry for the confusion... the cost estimate of $2200 - $2500 includes the hot water tank, compression tank, reworking the gas supply line that was messed up, and replacing all of the other plumbing throughout the whole house which was also stolen.

    0Reply
  • Account Closed
    Investor · Denver, CO · Member since 2016 · 736 posts · 582 votes
    9y

    My condolences.

    I've had my eye on that area for rentals for a while.  I'm a little gun shy in that I'm not used to dealing with point of sale provisions...and my understanding is the area is spotty with relation to experiences like yours.  I've had realtors tell me to count on adding at least $25k to the purchase price of properties in that $25k is the standard quote from contractors to get them available to rent/move-in.

    Hopefully they didn't make a mess at your place - I have a property outside of Ohio where, while vacant, the copper was stripped from the basement (they left the water heater).  The result was 40 gallons of water on the basement floor from the water heater - resulting in mold (before I bought it).  Once we got new water heater, new furnace, new air conditioner, and were ready to rent, we (the property manager and I) realized that the copper wire had been vandalized as well.  I have a tenant moving in on the 9th so I'm hoping it ends as a success story.

    0Reply
  • Mel C.
    Flipper/Rehabber · Middlesex County, NJ · Member since 2017 · 29 posts · 8 votes
    9y

    please keep us updated on your alarm install. might have to get it for a couple of properties I have.

    0Reply
  • Account Closed
    Rental Property Investor · Orlando, FL · Member since 2016 · 463 posts · 220 votes
    9y

    I have had SimpliSafe since last fall, and I am very impressed with the service so far. I, too, bought it because it is cheaper than other services, only needs a power source, and is portable (can move to another property as necessary). When my contractors were working on the house, they tripped the alarm a couple of times (didn't get to the keypad in time), and SimpliSafe called me immediately and sent the police if/when they could not get a hold of me. Their online dashboard is also very easy to use to modify things, like passcodes when one contractor is done. I recommend them to everyone around me.

    1Reply
  • Bob CollettPro Member
    OP
    Property Manager · Brecksville, OH · Member since 2014 · 486 posts · 464 votes
    9y

    Thanks @Account Closed.  I will post my results here.  I spoke with my insurance guy. He agreed that making an insurance claim would be futile. 

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    9y

    Do you have to out run a bear to survive a bear attack? No, you just need to out run your friend!

    You will never prevent this stuff, you can only reduce it. The best bet is to make your property more secure then neighboring properties. How did they get inside? Break down the back door or through the basement windows?

    Things we do to questionable properties to secure them or make them less appealing to thieves.

    • Glass block windows.
    • Replace copper with Pex whenever possible.
    • Schlage dead bolts. Defiant or other cheap brands are junk. Schlage is about 3x as expensive but totally worth it. They will usually hold up better than the door. I had one property that the thieves beat the door in so hard that the door folded in half. They still got inside but the point is the deadbolt held up. Most thieves will give up or move onto a new property after a few failed kicks. 
    • Radio on at property.
    • Lights on at property.
    0Reply
  • Bob CollettPro Member
    OP
    Property Manager · Brecksville, OH · Member since 2014 · 486 posts · 464 votes
    9y

    @James Wise James... thanks for the tip on the Radio... and the Schlage dead bolts.  Do you go with key only dead bolts on the security doors?  I think this one was an inside job... but the issue is bigger than just this one house.

    Bob

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    9y
    Originally posted by @Bob Collett:

    @James Wise James... thanks for the tip on the Radio... and the Schlage dead bolts.  Do you go with key only dead bolts on the security doors?  I think this one was an inside job... but the issue is bigger than just this one house.

    Bob

     By key only I assume you mean the one with key holes on inside and out as opposed to a lever on the inside? No we don't use those as you can't place tenants in homes that have those as it could potentially trap a tenant inside during a fire.

    We do however use non locking handles. So the deadbolt is the only way to lock the door. This prevents tenant lockouts and is much more secure then relying on a handle lock.

    0Reply
  • Account Closed
    Rental Property Investor · Orlando, FL · Member since 2016 · 463 posts · 220 votes
    9y
    Originally posted by @Bob Collett:

    @James Wise James... thanks for the tip on the Radio... and the Schlage dead bolts.  Do you go with key only dead bolts on the security doors?  I think this one was an inside job... but the issue is bigger than just this one house.

    YIKES!!!

    0Reply
  • Bob CollettPro Member
    OP
    Property Manager · Brecksville, OH · Member since 2014 · 486 posts · 464 votes
    9y

    I am updating my recent experience with the SimpliSafe security system.  After a couple of break-ins in Cleveland Heights, I decided to purchase two of the security systems, each with its own base station and with monitoring.  

    The systems arrived at my doorstep two days after I ordered them, so I rushed out to Cleveland Heights and Garfield Hts to install the systems in my vacant properties.  The installation took a bit longer than advertised, but after about 30 minutes, I was ready to test.  The company customer service is very good. The technical support was knowledgeable and willing to help. 

    Once we go the system up and working locally, I was a bit confused that it would be in "practice mode" for three days (to avoid false alarms).  That would normally be OK, but my vacant house was "hot" and I wanted it to work immediately. 

    The customer support was able to help, but unfortunately, I learned very quickly that the T-mobile chip set that came with the base station was not reliable... so while the alarm system tested and was working OK... the signal was not good, so that it would go in and out, and essentially be useless.

    After a few days of screwing around, and troubleshooting every other possibility, Simplisafe decided to send me Verizon chip set.  This meant two more days without a monitored alarm system. But as promised, the new Verizon chip came in two days.  I again rushed out to Cleveland Heights, and installed the new chip.  It working immediately. I next installed the new chip in Garfield Heights.

    Today I had to go to Garfield Heights for a rental appointment at a different property.  Afterwards I went to my vacant property with the new security system.  The window in the back door had been busted open.  I looked through the window, and there was no sign of intruders.  I stuck my arm through the broken window to find that the door was still secure.  Just then, the security system must of senses the motion of my arm, because the alarm went off.  I stepped away from the door, and within a few minutes, I got the call from the monitoring company asking if I needed assistance. Since this WAS NOT a test, I told them yes, there has been an attempted break-in, please dispatch the Garfield Hts police.  I waited outside, for the uniformed officer to come by. He checked out the place and everything was secure except the broken window.

    So while the bad guys did not trigger the alarm (unless they had been there just moments before I arrived), the system did pick up on my arm motion, and did exactly what it was supposed to do.

    I would thus far recommend the system.  I will follow-up more, if there are more events, or when I move the system to the next vacant unit after these are rented.

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