February 17, 2022

How to Crime Proof Your Investment Property

Crime Proof Your Investment Property

Part 2: How to Crime Proof Your Investment Property

Make your tenants feel safe in your property

With violent crime on the rise nationwide, every American has crime as a concern on some level. Last week we wrote about the rising crime rate and how it can affect quality tenants choosing your property and paying more because of the perception of safety. And yes, to attract and retain higher-quality tenants, your investment properties must have certain “checklist items” that present it as a safe place to live.

Today we’re dealing with everything from porch pirates to vandalism to home invasion. Home security continues to be a booming business, capitalizing on the homeowner’s and renter’s desire to create greater safety and barriers to theft, intrusion or vandalism. People have more choices than ever to increase their “protective bubble” through wireless security systems, video surveillance, motion detection and security monitoring by third parties. But there’s more that you can do as an investor to attract and retain higher-quality tenants by crime proofing your property.

Understandably, tenants with children typically scrutinize a property for its safety measures more than tenants without children. Keep these things in mind not only when you’re considering a new investment property, but as you assess maintenance or updates for a property you currently own. Here are a few perspectives and tips that can help:

The renter’s perspective

Today’s high-quality tenant is willing to pay more for a safer place to live, so they will consider the following when evaluating their rental choices:

Crime history from police reports, sex-offender websites, check in with neighbors and review online crime maps such as Spotcrime.com
Safer parking for their vehicles such as a driveway, lot behind the property or garage versus on-street parking
Lighting, access and visibility on and around the property
Proximity to fire stations and law enforcement
Neighboring home quality, activity/use, noise nuisance and owner/tenant approachability
Access to shopping and other conveniences in proximity to the property
Quality of locks, egresses, windows, fences, barriers, etc.
Security systems, video surveillance, security guards, motion detection, crime deterrents, etc.

The owner-investor’s perspective

For properties you currently own, assessing safety and the crime proofing of your property should be a priority to attract high-quality tenants:

Assess your properties through the eyes of a prospective tenant (see list above) and make appropriate improvements
Create visual security through landscaping and maintain the yard, garden beds and other shrubbery while the property is vacant either between tenancies or during a rehab
Recommend safety practices particular to your property to your tenants such as keeping their cars locked and potential items of theft out of plain view
Add motion-activated lighting to your property’s exterior
If considering video surveillance, keep in mind your tenant’s privacy and avoid over-sensitizing them to potential crime
Make sure you’ve done thorough background checks into prospective tenant’s rental histories for any potential claims or issues related to property damage or criminal activity as some tenants may have a history of criminal activity through their own behavior or from relationships with people who have history of drug use or criminal behavior
Insurance carriers can provide coverage for break-ins and vandalism, but make sure your insurance carrier covers these incidents with a reasonable deductible for your investment property
While your property is vacant whether under rehab or between tenancies, make it appear occupied such as putting lights on timers or having a neighbor park in the driveway and keep the landscaping up or snow removed, depending on the season

The purchasing investor’s perspective

If you are looking to add another investment property to your portfolio, keep the above items in mind, as well as:

When looking at the pro forma, include any potential capital investments will you need to make to improve the property’s safety profile
Assess the neighborhood’s crime history as well as the property’s history on sites like Ownerly.com
Review other properties for rent from the perspective of their safety profile like a potential tenant would
Is the street view of the property accessible and open? Are nearby properties vacant or have bars on first floor windows? Does the street or neighborhood appear safe? Is there normal residential activity? Visit the property yourself or have your property manager visit the property at different times of day to assess the safety of the area.

Summary

Today’s high-quality renter seeks safety, access and convenience as well as a rental that makes sense for their needs and budget. When you assess your property through the lens of a prospective tenant, you will see more opportunities to improve the safety profile and attract the best tenants seeking safety and peace of mind. It may require a capital investment, however, in the long run it will be worth it to keep your property and tenants safe. 🏠

Read Part 1: How the Growing Crime Rate Can Deter Quality Tenants