How do I prevent theft and transient moving in while remodeling?

Question

Background:  I have located a quadplex in a low-income neighborhood with NO tenants.  The seller is trying to get rid of the property because he is having trouble remodeling all the units in the quadplex.  He reported that transients moved in and had to kick them out a few times.  The neighbors and others off the street enter the property at night/weekends to steal equipment and building materials.

This quadplex will take 3 months to finish remodeling.  (Kitchen, bathroom, HVAC (2 units), flooring, windows, paint, etc)

I believe if I can solve these issues, this quadplex might be a good opportunity to fix up and hold as long-term rental units.

Questions:

1.  How can I prevent transients from living in the quadplex?

2.  How can I prevent people from stealing things from the property while renovating?

4.  Should I consider this opportunity?  Even if I can remodel, will there be any red flags holding this quadplex as long-term rental units?

Charles Clark · Answer

Physically being there is probabally the only real fix for this. I knew a guy that was building his own house and had theft issues, he bought an old trailer and started sleeping out there (with a shotgun I'm sure) and that solved the issue. If you are not up for that it might be a tough job.

Bruce Woodruff · Answer

First of all, I wouldn't take this on unless you are  very experienced.....

I have done something similar.....ie taking on a 15 unit Apt redo in a C minus neighbor hood. It started off ok, because my crew of 10 burly carpenters were there all day every day, and that kept a lot of the riff-raff away once we established dominance. But there were still the nights. I eventually hired one of the nearby Apt managers (who was an ex-cop) to watch the place overnight. He was great, and actually loved getting back in the game in that way.....

But this is not for the faint-of-heart, so beware before you jump into this. It will be a 24/7 job for you personally. And may present you with some degree of physical danger and you may need to be armed.....can you handle this lifestyle for a few bucks? There are plenty of other properties out there.....

Drew Sygit · Answer

@Ken Lee we deal with this a lot in Detroit.

First, why are you buying this property with no experience with this type of neighborhood challenges?

How much are you budgeting in losses for your learning curve mistakes?

How well do you understand ALL of the following?

1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.

2) The Class of the PROPERTY they are buying - which is relative to the overall area.

3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.

4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.

5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.

6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.

7) That OOS property Class rankings are often different than the Class ranking of the local market they live.

8) Class A is relatively easy to manage, can even be DIY remote managed from another state. Can usually allot 5-10% vacancy factor and same for maintenance.

9) Class B usually also okay, but needs more attention from owner and/or PMC. Vacancy and maintenance factors should be higher than for Class A as homes will be older, have more deferred maintenance and tenants will be harder on them.

10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!), but very difficult to DIY remote manage. Vacancy and maintenance factors should be higher than for Class A or B. Homes will have even more deferred maintenance and tenants will be even harder on them.

11) Class D pretty much requires an OWNER to be on location and at the property 3-4 times/week. Most quality PMCs will not manage these properties as they understand most owners won’t pay them enough for the time required and even then it’s too difficult successfully manage them.
***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.

https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?highlight_post=5562799&page=3#p5562799

Also, SERIOUSLY consider - do you really have the time to be a DIY landlord or should you hire a PMC?

Now to answer your question.

Alarms probably will not work as the thieves will be long gone by the time police show up - if they show up at all.

You need to secure access to the property using oe of the following:

1) Plywood over windows and all put entry door.---Very easy to remove though

2) http://www.dawgsinc.com/---Metal screens, expensive but more intimidating. Can also still be removed with enough time

3) Chain vicious dog inside---Someone then has to feed, water and cleanup after it.

4) Housesitter---Can be challenging to find someone reliable that wants to basically camp out in a house under construction

Kai Van Leuven · Answer

@Ken Lee

I have bought a few in areas like this and have learned some lessons the hard way….

1. Lock up everything that has value and make it so they would have to run power equipment, steal your car, or cut a whole in the side of your building to get in. If it can be opened with a crowbar it is not good enough.

2. If you leave it out, just be ok with it being stolen.

3. Plywood over ever door and use different screw head types (t25 and Phillips #2).

4. Get in 1 quality tenant ASAP.

Jon Martin · Answer

-Ring cameras & smart locks

-motion sensor lights that look like cameras that light up anyone who gets too close

-smart locks on all exterior doors

Would also put the non-emergency number for your local sheriff/police dept in your phone. Maybe send them some treats and a nice note thanking them for their service.

Carlos Ptriawan · Answer

What you need to do is to call the police to have more patrol around your area and then you have to board every window. Then install a very strong anti-theft door protection (a lot in Amazon).  Increase the height of the fence.Then cut off the electricity/water if needed.Security systems are not meaningful because the thieves (in CA at least) is going to ignore that.

Steven Foster Wilson · Answer

First off, what kind of neighborhood is this? Is it a C-class neighborhood that is transitioning to a B class? Or is it truly a C or below kind of neighborhood? I bought a property that was a C-class neighborhood yet transitioning to a B class. Upon buying the property, on the first day of walking it, I found I had squatters... I had to get them out of the property but I knew it was not a once-and-gone type of deal. So I changed all the locks, put a security system in, and built a huge fence around the property (which was good because I like getting pet rent). I had one break-in after that and all they stole was the alarm system, funny enough. All that being said, I think it depends on what kind of neighborhood is it and what is it becoming.

Wale Lawal · Answer

@Ken Lee

Ways to prevent theft and transient.

1) Lock things up

Ensuring your employees lock everything up at the end of the day makes your job site less of a target. You might consider putting temporary fencing up around the area, making it more challenging to remove large equipment. Bringing portable storage units to the construction site provides a spot to store your tools and valuable items like copper and lumber without having to remove them from the job location every night.

2) Track your assets

Managing inventory is an essential part of any construction site security plan because it allows you to keep an eye on what you have, what you need, and what your team is using on the job. You can also register all your tools and equipment so there’s a record of everything that should be there. Implementing a check-out program for equipment and tools will make it less likely that an employee will walk off with something you’ve purchased, as well.

3) Conduct background checks

You might not want to believe that your employees are stealing from you, but it does happen and is something to keep in the back of your mind. Background checks aren’t foolproof, but they allow you to see if any employees on your team have a history of theft so you can maintain a closer watch. Advertising that your company conducts background checks might even prevent those with a criminal history from even applying, because they know there will be scrutiny and theft-reduction plans in place on the job site.

4) Cut fuel supplies

A tip for dealing with heavy equipment: Cutting the fuel supplies or disabling circuit breakers can prevent thieves from stealing these items in the middle of the night. This equipment is incredibly challenging to move, and it becomes impossible without power. A fuel pump kill switch is a simple item to install and will ensure any heavy equipment you have to leave on the construction site is safe from theft.

5) Have a surveillance system

Installing an on-site surveillance system is perhaps the most effective way to deter theft at your construction sites, particularly if you go with video surveillance. These systems are monitored by a remote, armed security guard throughout the night, ensuring no one can enter the site undetected and get away with your equipment. You can put up signs, too, acting as a deterrent as a potential thief approaches. A video surveillance system is designed specifically for each construction site, so you’ll have cameras in the optimal locations to protect your tools and equipment.

All the best!

How do I prevent theft and transient moving in while remodeling?

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