Recent headlines show a worrying trend of rented properties being linked to criminal activities. On 19th August 2024, Johor police arrested the mastermind behind a drug operation in rented homestays. On 15th October 2024, Kelantan police made one of the largest drug busts of the year, seizing nearly RM50M worth of "Yaba" pills and heroin in rented premises. And on 20th October 2024, Johor police busted two syndicates and seized RM4.9M in drugs, all linked to rented apartments. These cases are part of a growing list that connects criminal activities with rented properties.
Many landlords who own multiple properties see rental opportunities as a means to generate extra income. Upon receiving payments, landlords often assume their involvement ends there, leaving tenants to live as they see fit. However, what happens behind closed doors can be outside the landlord's control and knowledge.
Unfortunately, some tenants exploit this gap, using rented premises for illegal activities like storing contraband (e.g., illegal cigarettes), bitcoin mining, illegal gambling, or drug trafficking. Criminals today frequently pose as tenants to rent homes, apartments, or office spaces, using these properties as fronts for their illicit operations while avoiding detection.
While this benefits the criminals, landlords can find themselves in serious legal trouble if these illegal activities are uncovered by authorities on their premises. Law enforcement has the right to detain landlords for questioning during investigations, and the burden falls on the landlords to prove their innocence. This process can be long, stressful, and require in-depth investigations to clear their name.
In the past, landlords mostly worried about tenants missing rent payments or damaging property. However, the landscape has shifted. Today, landlords face the risk of being implicated in criminal activities carried out at their properties.
What can landlords do to protect themselves?
Landlords can take several effective and accessible precautions before entering into a landlord-tenant relationship:
Background Screening: Conduct a background check to see if the potential tenant has a history of civil or criminal offenses.
Credit Check: Verify the tenant’s creditworthiness to assess their financial stability and determine whether they are reliable in meeting their financial obligations.
Employment Screening: Review the tenant’s work history to ensure they have stable employment and aren’t prone to job-hopping or financial instability.
Drug Screening: Conduct a drug test to determine if the potential tenant is involved in drug use, reducing the risk of drug-related activities at your property.
Conclusion
Owning multiple
properties can provide a lucrative source of income, but landlords must remain
vigilant about the potential risks of renting. Taking proactive measures, such
as background and drug screenings, is essential to protect both themselves and
their properties from illegal activities. In today’s environment, safeguarding
your rental properties is more critical than ever.