(C.E.O. of ICON Asset Group, LLC).

• Scott Silverman, Managenent Alert Group, Ltd.

              (Founder of Second Chance Program of San Diego)

• Nancy McPherson, Bureau of Justice, Washington, D.C.
• Kathee Farrington, San Diego Housing Commission
• James Barta, Coldwell Banker
• Ralph Kent, San Diego Apartment Association
• James Manning, Intrastate Realty
• Alan Ziegaus, Stoorza, Ziegaus, & Metzger

We especially want to thank Captain Gera1d Sanders of the San Diego Police Department, Southeast Division, and Lieutenant Bill Becker and Sergeant Ed Newberry of the WE-CAN unit for their tirne, effort, and support over the past year. Without them we would have had an almost impossible task trying to understand the complex drug issues and how to deal with them. Our success on various properties is largely due to their dedication and commitment to end the drug and crime-related violence in San Diego.

The San Diego City Attorney's office, and in particular Deputy City Attorney Joseph Schilling, have been instrumental in advancing San Diego's drug abatement program. They have given us new ways to combat drug abuse and are to be commended for their aggressive work in this area.

The San Diego Aparturent Association would like to acknowledge the Tri-County Apartment Association's Drug Abatement Handbook, and thank them for their help.

During the past several years the practice of property management has been conducted in basically the same way by most businesses. The goal was to keep occupancy high and expenses low, thereby creating cash flow and equity. More often than not, problerns which arose on the properties could be handled without too rnuch concern.

areas and vacancies rose, the same landlord or manager justified lax screening policies by saying he needed renters and could not be too selective.

Unfortunately, in the last two or three years an entirely new problen has hit the rental rnarket. It has the potential to financially devastate those owners and managers who continue 1ax

screening policies and who do not have a sound management program. The problern, of course, is drugs and the crime-related issues with which owners and managers are faced in todays rental rnarket. 

Ineffective screening and lax management policies are probably the two greatest causes of drug activity and crime in rental units. The main focus of the SDAA/DATF program is to educate owners, managers and, to a lesser extent, renters on how to spot potential problems. Once those problem areas are identified, DATF will then assist in providing solutions where possible.

The basis of the program will be the interaction between owners, managers, enforcement agencies, lenders, housing authorities and the various city and county agencies. The DATF will be very active in promoting educational programs as one way to combat the drug problern. Once we understand what the problem is and its effect on the rental market, a solution can be found to eliminate it. Only by working together and educating owners and

managers can we have an impact on drug and crime-related issues in San Diego's rental housing.

style. 

Buildings such as single fanily homes, which fall below the rninimum number of units required for on-site management, are generally managed by the owner. It is the owner who does the resident screening, rnaintenance contracts, and possible lega1 work, such as evictions and the writing of leases. In most cases these owners have other full-tine employment obligations and do not fully understand the changes in the market with regards to drugs and drug dealing. By the time they do realize the severity of the drug problem, a major effort is required to correct the damage.

Other owners who have rental units which require on-site management and have multiple properties generally turn to professional management companies. However, the wide-spread use and manufacture of drugs in rental property, along with the escalating violence, has caught nany companies off-guard. Either they place inexperienced managers on difficult properties, allow problems to increase without trying to solve them or are just unaware of how quickly a problem can spread. In any case, the results are the sarne--drug dealing, increased crime activity, high vacancies and uncontrollable expenses, all of which affect the

owners ability to own and operate rental housing. 

DATF is currently working to provide rnonthly meetings which cover such topics as screening, security, evictions, drug abatement, and more. The goal is to educate owners and managers and to share in each other's successes and failures in an effort to become more skilled at managing rental property.

To survive we must acknowledge the severity of the drug problem since it directly affects how we must manage our properties. Continual education regarding causes and effects will be the best way to ensure that the problems do not occur on our properties.

SCREENING - THE FIRST LINE OF DEFENSE

The careful screening of all applicants is probably the single most important factor in determining vhether a renter will be a good tenant or your worst nightmare. An increase in time spent thoroughly reviewing applications and checking references will save a lot of aggravation and expense in the long run. The following steps are helpful:

1. Have all prospects fill out an application completely, making sure no spaces are left blank.
2. Have them fill out a credit check form to allow the checking of prior credit history for any unlawful detainers or judgments filed against then.
3. Use a reputable credit reporting agency and verify all information.
4. Call all references.
5. Call prior landlords and find out if the applicants paid rent when due, if there were any complaints from  neighbors, when they vacated the premises, if the security deposit uas refunded completely, and if the previous landlord would rent to them again.  It is important to call the second and third previous landlords to verify the application since the current landlord rnay give a good reference just to get the applicant out.
6. Recheck the information to be sure it is consistent.

Our experience has shown that the majority of applicants with a bad rental history falsify information and often use the name and phone number of a friend who will give them a good reference.  Periodically they omit a year or two of rental history, and lastly they will try to convince the owner or manager to rent to them without their having completed the application.

We reconmend that landlords require the following cornpleted

items from each tenant.

1. Rental application. 
2. Rental agreement.
3. Credit check form.
4. Signed copy of house rules.
5. Statement of charges showing how much rent and deposit is required and the dates due.
6. Notice of cooperation showing managements intent to prevent, and deter criminal activity on the premises.

Managernent must request the same informnation from all applicants and must use the same verification methods. The same ciiteria must be consistently and equally applied to all current and prospective residents.

While no screening systern is infallible, owners and managers must be thorough. However, once a drug or crime-related problem is brought to the attention of the owner or manager, he needs to take all lawful and reasonable measures to eliminate it. Because of the nature of the drug culture and the inherent potential for violence, effective communication between owners, managers and residents is crucial.

Most tenants know or suspect that another resident is involved in illegal activity long before management is aware of the problem. Getting residents to share this information is difficult since they are understandably concerned about their own personal safety.  One of the best ways we have found to teIl if the owner or manager has current or potential problerns is to look for the following signs on the property:

1. An unusual anount of traffic in and out of the property, generally related to certain individual units.
2. Depending on the type of drugs involved, crack cocaine traffic can be expected to occur anytime between 4:00 p.m. and 3:00a.m., while methamphetamine usage is between 5:00 a.m- and noon.
3. Heroine and rnarijuana are generally evening-hour drugs. Even though the hours may vary, there will be unusual amounts of traffic with the visitors only staying for a few minutes, just long enough to complete the transaction.
4. Loitering on the perimeter, driveways or balconies.
5. An accumulation of litter and garbage. Notice syringes, whole matchbooks which have been used, bottles, candle wax, paper wrappers, small baggies, etc.
6. Groups of people that disperse when they are approached.  Depending on the numbers of the group, it might not be beneficial to confront them in a threatening manner.  More than likely the presence of the owner or manager on the property will be enough to get then to leave peacefully.
7. Look for heavy blankets hung over windows to block the view into the units.
8. Check trash bins for containers that hold chemicals and other materials used to manufacture drugs.  If an ether odor is noticed coming from the unit, vent pipes or drains, do some investigation, but be careful of a possible explosion.
9. Check security lighting daily and replace as needed.
10.   Paint out graffiti as soon as it occurs. 
11.   If security-type fencing and gates are provided, keep them in proper working order at all times.
12.   Have all abandoned and inoperable vehicles removed from the premises.
13.   Replace all broken windows in empty units, and check them daily to make sure no one is sleeping in them or using them to do drug business.
14.   Watch adjacent properties. If any of the above activity goes on there, it can be expected to overflow onto your property very quickly.
15.   Contact neighbors and work together to eliminate potential trouble spots.
16.   Know the tenants. If unknown people continue to enter a unit find out who they are. If a tenant is not seen for a period of time, check on them. In either case it is possible the original tenant is gone and someone else is now using that unit to deal drugs.

    Owners and managers need to communicate vith their managers, maintenance personnel, outside vendors such as cable television installers, postmen, power company workers, and phone installers.  All are excellent sources of information not only about particular buildings, but about general conditions in the neighborhood since they have contact with so many different individuals.

DEALING WITH THE DEALERS

Perhaps the rnost difficult aspect of eliminating drugs from the owners property is trying to  figure out who is actually responsible for the problem. Is it the manager who rented the

unit?  Is it the tenant who a1lows drug activity in the unit? Are the owner's policies too lax? Is the building designed in such a way that the design itself contributes to the problem? We believe that the above items and many more all play a part in the drug problem.

The end result is that once drug dealing has been established on the owners property it is very lucrative to those who do it.  Tremendous sums of rnoney are made in the drug business as we all know. For whatever reason, the building, managernent style, tenant mix or location all play a part. Simply put, if it were not profitable to be in business in the building the dealers would go elsewhere.

Our experience has shown that the owner or manager does not need to directly confront the dealers in most cases in order to get them to leave his property. The preferred tactic is to disrupt their business by installing security lights, putting up better fencing, evicting troublesome tenants, having stricter management policies, using better tenant screening procedures, etc.

The owner or manager will probably need assistance from the police and private security initially if the problern is severe.  Once the owner or manager begins to interrupt their business and make it inconvenient for them to do drug activity, the dealers are more likely to move to another property. The activity is displaced instead of eliminated, since the goal is to get it off the property as quickly as possible. However, if the problen is severe, don't expect them to go without testing the resolve of the owner or manager to stop the drug dealing.

If the owner or manager can get his tenants and others in the neighborhood to join together and keep each other informed concerning suspicious activity, their confidence will likely

increase and they will be able to deter some of the problems.  Most drug dealers of whom we are aware don't want the constant annoyance or hassle of having to move every few months. It is bad for their business and the customers can't find them in order to buy the drugs. So far, the best solution seems to be to make it inconvenient for them to do business on the property and in the neighborhood.

TERMINATING THE TENANCY

Often the only solution for correcting the drug and crime-related problem is to evict those tenants who cause the problem.  The type of termination can vary depending on whether there is a lease, a month-to-month agreement, or whether the owner or manager has a Section 8 HUD tenant.

A REMINDER: In most states the owner or manager can not resort to constructive eviction even if the resident has breached the agreement. He must strictly follow all notice and service requirerments. He can not turn off water or power, remove doors, make the unit uninhabitable, etc.

SERVICE OF THE NOTICE

Filling out the notice correctly and serving it properly are two tasks that are most crucial in successfully processing the unlawful detainer action. If either are done incorrectly, an

eviction can not succeed. Many mistakes are made by landlords in the area of filling out and serving notices, and most are fatal to the case.  A notice should include the names of all persons residing in the premises. If there are those for which the owner or manager

does not have names, simply add the words "and all others in possession", or Does 1-1O after the named tenants. The type of notice served depends on the type of breach that occurred. Local apartment associations have forms of the various notices available

for their members.  There are landlord eviction books at most major bookstores.  Service of the notice may be accomplished in one of three methods:

1. PERSONALLY, the most desirable rnethod. Keep the original and serve the copy.
2.  SUBSTITUTE SERVICE, completed when a person of suitable age is given a copy of the notice at the residence and an additional copy is sent to the tenants home address.
3. POST AND MAIL, the least desirable method. The notice is posted in a conspicuous place at the residence, and another is mailed the same day to the tenant.

TYPES OF TERMINATION

Most landlords use the month-to-month rental agreement because it allows for greater flexibility with tenants. With this type of agreement the owner or manager can terminate the tenancy without cause by serving a 30-Day Notice. It does not require an indication of any specific violation or reason for terminating the tenancy and does not place the burden of proof on management.

1. A 3-Day Notice to Pay or Quit is served to inform residents that they are violating the rental agreement or house rules. Management must be aware that this notice contains an option for correction and that the cited violation must be curable.  While drug dealing may be a violation of the agreernent, it is very difficult to prove and, except on the advice of 1egal counsel, should not be used as the basis of a 3-Day Notice.
2. A 3-Day Nuisance Notice requires management to have reasonable cause and sufficient proof that a resident is engaged in unlawful conduct. This is a non-curable violation notice and places most of the burden of proof on management. Courts generally are not likely to uphold this type of notice. If the owner or manager plans to use it, we suggest that he consult with an eviction attorney prior to serving it.
3. A 30-day Notice of Termination.  This is a "No Cause" termination notice and should not contain any reason for termination, except for HUD tenants where a cause for termination MUST be given.

TERMINATING HUD LEASES

Since a HIJD lease by definition covers a period of time, generally one year, and it is renewable under certain conditions, it is difficult to terminate except in two cases. The first would be for the nonpayment of rent. If the tenant fails to pay his portion of the rent the owner or manager can use a 3-Day Notice to Pay or Quit. The second way to terminate a HUD lease is to use a 30-Day Notice which cites specific causes such as breach of covenants or conditions in the HUD lease or, in the case of unlawful activity, too many police contacts or activity which endangers the health and welfare of other tenants. The notice rnust be specific and the reason written on the face of the notice. A copy then must be sent to the tenants case worker. Again, because a yearly lease is generally not terminable with a 3O-Day Notice, the owner or manager will want to consult an eviction attorney to insure this type of notice is done correctly.

ASSISTING LAW ENFORCEMENT

Communication between management and the law enforcement agencies is crucial. The relationship needs to be built on trust and respect. Each should do their best to provide the other with the proper and correct information and be willing to support the other's efforts to stop the drug problem. Management should provide the police with the following items:

1. A trespass letter authorizing the police to enter the property and arrest anyone who is not a guest or tenant. The rent roll should be provided on a monthly basis. See Exhibit A.
2. A detailed map of the premises, including laundry room, parking lots, garbage bins, fences, gates, etc.
3. The names and unit number of the resident managers, and the name of the security company, if any. 
4. Descriptions of suspects, such as age, sex, race, height, weight, hair, eye color, etc.
5. Description of types of cars, license plate numbers, color, year and make.
6. The names and addresses of any witnesses willing to testify.

Management must have realistic expectations when working with law enforcement. The police receive so many requests that they have to respond to calls according to severity of the call. Long term cooperation will work to everyones benefit and will result in a lowering of the criminal activity in the area.  It is also necessary to know which agency to call, depending

on whether the problen is gang related, dornestic violence, or drug dealing. Be specific vhen calling the dispatcher so proper service can be provided.

CONCLUSION

The best way to deal with the drug and crime-related problem is to take an active part in the solution. No property is immune from the threat of drug dealing and drug activity. If any type of drug activity is allowed to get started on rental property it will soon grow into such a monumental problem the end result could very well be the loss of an investment.

Drug activity spreads so quickly that entire neighborhoods can be devastated in 60 to 90

Attach sheet with address of property(s)

Dear Captain _________:

I am the property manager and/or owner of the above referenced property(s). You have my permission and full authority to enter any or all of the above properties at any time to conduct police activities you think are necessary. In addition, you have full permission and authority to arrest and/or remove on my behalf any persons who are on the property(s) that are not tenants.

Enclosed please find a list of all current tenants, and the name of the resident manager. My manager is instructed to cooperate fully with the _____________ Police Department in helping to eliminate any and all unlawful activities which may be occurring on or about

the property(s). 

Should you need any additional or different authorizations from me, please do not hesitate to contact me. Thank you in advance for your cooperation.

Sincerely,

_____________________

Property Manager/Owner

phone number

_____________________

Resident Manager

FREQUENTLY  USED NUMBERS

Emergency.... ....911 

This number should be used in emergencies and to report crimes in progress. Do not hang up if you receive a busy signal; all incoming ca1ls are answered in the order received. If unable to speak just dial 911 and leave the phone off the hook, the address and phone number of  the calling party is automatically recorded, and an officer dispatched.

The Narcotics Task Force

This number should be used to give police information on suspected manufacturing of narcotics.

The Narcotics Street Team

This number should be used to give police information on suspected dealing of narcotics.

Crime Stoppers ...355-TIPS

This number should be used to give the police tips on known or suspected felony crimes. The calling party does not have to identify himself . If the information given leads to the arrest and conviction of a suspect, the reporting party maybe eligible for a cash reward.

Police Information Center.

This number is used to take police reports by phone, and to provide general information.

Police Dispatch Desk

This line is set up to handle non-emergency, low priority calls.

Pathfinders for Teens

This program provides counseling for drug abuse related problems for teens.

Alcohol and Drug Abuse Hotline ....: ...1-800-252-6465

National Council on Alcoholism

Child Abuse Hotline Toll free 1-800-344-6000

Elder Abuse

Crisis Line For The Handicapped:  24 hour- toll free 1-80O-426-4263