Securing your assets in an environment that continues to see more risk (theft, break and entry & vandalism).

Written by Garret Froese from Froese Corp Group,

For any of you that use the BRRRR method there are always three major times of transition: (1) current tenants leaving the building with renovations starting (2) the actual renovations and (3) putting in new tenants after the renovations are complete.  

Regardless of the area that you invest in, having an effective security strategy in place is crucial to protecting your assets.  The assets include not only the building itself but it also includes your tenants, contractor (and their tools), and your renovation materials.  It not only protects your existing tenants but also helps perspective tenants feel that the building is more secure, thereby increasing the chances they’ll want to apply to and live in your building.

Here are 3 ways to secure your building:

1.     Install a security alarm

On possession day, install a monitored security alarm with fully functional cameras and motion sensors.  In order to install cameras there will need to be a working Internet connection.  At our larger buildings, we offer free WiFi to our tenants (and increase the rent in the building) and also use the same Internet connection for our cameras.  If you don’t have Internet yet (or don’t plan on getting it at all), you can install a system that uses a satellite-based connection for the motion sensors (but cameras won’t work with this, unfortunately).  When the building is empty, set up the motion sensors at all entrances, main floor hallways, and other easily accessible entry points.  After the renovations, set up the motion sensors in protected areas like utility rooms.  While dummy cameras can act as a deterrent that’s about all the function the offer.  The other problem with them is that repeat offenders learn very quickly that these cameras have no effect and that there are no consequences to their actions.  I’d very much recommend a monitored system that can either call the police or a security company directly on your behalf when an issue arises.  Although you save money by monitoring it yourself, what if something happens when you’re unavailable?  It can and does happen.

2.     Hire a private security company

In some of the areas we invest in, we might find ourselves buying properties that include unruly tenants that engage in illegal activities.  Although we pride ourselves in working well with the vast majority of tenants, there will always be some that will cause trouble – this is where a private security firm comes in handy.  They can help with the transition of tenants out of a building to ensure everyone’s safety.  It’s also surprisingly cost effective to have them do nightly inspections at a building, which can help reduce break-ins and squatters during renovations.  Having the security company be the first point of contact in the event of a break-in can also increase the response time of how fast someone attends to your property.  Although the local police will make every effort to get to your break-in quickly, they may have other more pressing and serious matters to attend to.  If you catch someone in the act, I personally believe that everyone deserves a second chance. So we never press charges first time around.  However, if they’re chronic repeat offenders, then that’s a different story.

3.     Choosing the right tenants

Once your building is renovated it’s time to pick your new set of tenants.  Having the right systems in place to weed out bad tenants is key.  Think of this as a long-term and proactive security solution to protect your assets.  Check the Queens court bench, which is a publically accessible website, to see if your perspective tenant has ever had any legal involvement in court.  Some landlords will also ask for criminal record checks with their tenants applications.  Looking at the Residential Tenancy Branch (RTB) online database to see if a perspective tenant has had issues with their prior living arrangements is also a useful tool.  Try to get a reference from a previous landlord (NOT the current one) as this can help you to determine how the perspective tenant lives like.  Lastly, nothing beats a good ol’ Google search of that perspective tenant and checking their social media to find out what kind of person they are, because that will likely reflect how they’ll treat your property.

A house without security cannot be a home.  If your tenants feel safe and comfortable, they’ll call their house a home.  Like with any tenant, the goal is for them to stay a long time, to respect the property they live in, and to have a good landlord-tenant relationship with them.