Surviving the drug problems of the 80's, Controlling the drug problems of the 90's and beyond
By Phillip E. Bonham President, Management Alert Group, Ltd.,
Co-chairman Drug Abatement Task Force San Diego Apartment Association
And Scott Silverman
Vice - President, Management Alert Group, Ltd.,
Co-chairman Drug Abatement Task Force San Diego Apartment Association
During the past year, Scott Silverman and I have given you some graphic examples of the types of problems we have encountered on the properties we have managed for various owners. As you have come to realize, any property can fall victim to drug infestation and the resulting crime problems, regardless of the size of the buildings, the types of units, the level of sophistication of the owners, or even the geographic location of the building itself.
The Ostrich Approach
One of the main reasons Management Alert was formed over two years ago was to make property owners aware of the drug and crime problems associated with rental housing. Our impression was that too many owners – and to a great extent, too many property managers and on-site personnel – did not realistically know the severity of the problems. Nor did they understand that ignoring the problems would not make them go away.
Our experience had proven this impression to be accurate. Experience also proves that if you ignore drug-realted problems and hope they will go away, they will increase in direct proportion to your wishful thinking. That is, not only will they not go away, they can become so severe and entrenched on you property that you could be the one to go away.
During the past twelve months, SDAA has been spearheading the Drug Abatement Task Force. As most of you know, the Task Force has had great success in helping implement drug abatement ordinances throughout San Diego County. Because of the persistence of the DATF and Management Alert, we firmly believe that some owners have made a significant difference in the level of drug activity in their neighborhoods. Which owners? Those who are aware of the potential for drug activity on their properties and have either taken steps to curtail that activity or have taken preventative measures to ensure that it does not get started on their properties.
Key Lesson
The most important lesson Scott and I can give you is that the drug problem exists throughout San Diego County, and is not limited to any particular geographic region.
Yes, we expect to see an increase in drug activity in San Diego County in the 90s, and our experience tells us it will spread into other location such as North County, the inland area, and along the coast.
How do we know? If you have read our articles over the past twelve months, you know that the San Diego Police Department has put a lot of pressure on gangs and drug dealing in Southeast. We have seen the gangs move East and North because of this. Additionally, several gangs south of San Diego have begun taking over locations in National City and are now expanding onto Southeast to pick up the slack created by those gangs who have moved North and East. In the North County, the problems they are experiencing are related to the gangs who have moved out of Los Angeles because of the police activity there.
New Challenges
As we move into the 90s it is imperative that we all get actively involved in programs such as Management Alert and support the DATF. The tools developed in the last part of the 80s have worked well, but the drug dealers have also gotten more sophisticated and better organized.
For example, Scott and I recently discovered that a resident manager couple was taking money from a group of known drug dealers and suppliers. In a well-orchestrated maneuver, this group used “shills” with clean rental histories to apply for a total of four apartments. As you might imagine, their applications looked good and a credit check turned up no adverse information.
The drug dealers were given possession of the units, the managers were paid off, and within 48 hours a roaring crack house was in operation on the property. Three of the units were used for dealing drugs; the fourth ran a prostitution ring. Needless to say, the original applicants never moved into the units and we did not know who was actually in possession of the units.
The point of this example is that even though we hired a set of managers we had know for over 10 months, and who had been trustworthy and reliable, the temptation of drugs and money was too much for them. They had been convinced by the drug dealers that the owners would never know about their arrangement. They had also cooked up a scheme to embezzle some rent payments. Since it was the first of the month, the potential loss could have been serious.
The Plan Unravels
Their undoing came about in a very unusual way. Fortunately, Scott and I have developed a rapport with several groups in our market area, and one of them immediately informed us what was going on. Then the strangest thing happened here. The wife called Scott about 6:30 a.m. the next day and told him her husband had stolen some money. She was so “loaded” she could barely talk or stand. When I arrived at the property at 8:00 a.m., we recovered all the rents they had collected. Some of the residents – suspicious of their sudden rent-collecting tactics – had been unwilling to pay the managers, but gave us the rest of the rent.
The Lesson
Our success as owners and property managers depends – in large part – on our on-site personnel. As more and more dealers look for ways to increase their business, on-site managers will have increased temptation to take drugs, steal rent money, and allow the units to be used for illegal purposes.
Our goal for the 90s through Management Alert and DATF is to educate owners and managers about the new techniques being used by the criminals and to learn how to combat this problem. With the passage of the new ordinances throughout San Diego County, we have a unique opportunity to work with law enforcement and do our part to rid our properties of the drug and crime-related activity. Certainly SDAA and Management Alert will be providing you with the tools necessary to combat the problem.
Reprinted from
Rental Owner Magazine