What's growing next door?

The next big learning curve for real estate agents in Oregon is how to spot a marijuana grow house and what to do when they find one.   People who own rental housing should be especially vigilant of what their tenants are doing and make it clear in a contract what is not allowed.  Periodic inspections are just good business.

Now that marijuana is legal in Oregon, expect more home-grow operations to spring up to satisfy demand.  Even though there will be commercial growers to supply the medical and recreational market, individuals will grow for themselves and the black market.  The black market that people thought would disappear when pot was legalized, will still be there for people who want to avoid paying state and local taxes on the stuff.

A seminar was held locally a few weeks ago to keep real estate professionals abreast of the evolving facts of life.  Here are notes from one of the participants:

• There are currently 69,000 medical marijuana users in Oregon.  As of July 1 when pot is legal for recreational use, expect the number of users to skyrocket.
• Even though there may be limitations on how many plants can be grown at home, who will search homes to enforce the law?
• In the 60s and 70s the THC content of pot was 2-3%.  Today, through careful hybridization, it is about 30% - a 15-fold increase. 
• There will be a greater demand for pot from out of state consumers.  

• Homes that have been converted into grow operations are sometimes damaged beyond repair.  

• Electrical wiring for lighting and fans can be extremely unsafe.  The humidity produced by damp growing conditions creates mold infestations in all parts of the structure.  Holes are punched in walls for ducting and structures built for lighting and other mechanical needs.  Windows are covered to hide what is going on inside.  Large equipment can be seen going into the home, but the occupants will not stand out - they will try to blend into the neighborhood.
• Repairing grow houses to habitable condition can be extremely expensive.  New owners may sue if they find that all the mold or damage is not remediated.  
• Even when fixed up and sold, criminals may target the house for a home invasion looking for plants and cash because they believe it is still a grow house.  
• Grow houses are in the city and in the suburbs - in rental homes and in houses purchased specifically for pot production.  

The take away:  Be observant and let                  Click on image to enlarge.

police know about suspicious activity in your neighborhood.  If you are a rental owner, take precautions to prevent this from happening to you.

Thank you to a friend who passed this on to me.  As he said, it's the Wild West out there. 

One last thing:  This may be a good thing or bad, depending upon how you feel about legalized marijuana (I'm against it).  At the last Southwest Employment Area Plan Advisory Committee Meeting, a grower showed up looking for possible warehouse locations to set up shop.  The industry may be  uncomfortably closer than we thought.  

Oregon marijuana growers vie for real estate as they prepare for recreational market
The Oregonian/Oregonlive January 20, 2015 Noell Crombie

Nowhere is the trend more apparent than in the Portland area, where industry players are engaged in  a modern-day grab for warehouse and retail space.