A licensee was hired by an owner to manage the owner's apartment complex. As a result of numerous complaints, the licensee suspects that one of the tenants is involved in drug activity. Which of the following should the licensee do?

While a licensee may consider terminating the contract if the situation escalates or if the owner is unresponsive, canceling the contract without addressing the underlying issue does not resolve the potential illegal activity. Furthermore, it may not be legally justified or necessary at this stage.

Ignoring the situation is not advisable, as the licensee has a duty to act in the best interest of the property and its residents. By doing nothing, the licensee risks further complaints and potential legal repercussions, failing to uphold their professional responsibilities.

Confronting the tenants directly could lead to escalation, potential conflict, or legal issues for the licensee. It is inappropriate for the licensee to act on suspicions without proper authority or evidence, which could also jeopardize the management relationship and violate tenant privacy rights.