Cannabis - A Growing Problem For Property Owners
18th March 2009
An increasing number of residential landlords are suffering damage to their properties, giving rise to claims, because their premises are being used by their tenant(s) to grow cannabis.
Could this be happening in your property?
A growing number of residential landlords are suffering property damage because their premises are being turned into cannabis farms.
Records show that even properties in the most desirable post codes have been affected.
The cultivation process of cannabis can cause damage to the property in the following ways:
- Fires starting due to the tenants bypassing the electricity meter.
- Fires caused by intense heat from lights.
- Tenants starting fires to cover their tracks before police raids occur.
- Holes being made in walls to pass cables through.
- Water damage from leaking buckets and pipes.
Things to look out for:
Information gathered from claims suggests that the following characteristics may indicate that a property is being used, or intended to be used, as a cannabis farm:
- Short term let – 3 to 6 months duration.
- Rent is paid in cash, sometimes in full, or for a significant period of the let.
- Window blinds or curtains are always closed.
- A pungent smell may be noticed through the walls of adjoining properties.
How to safeguard your investment
What can you do about it?
As a landlord you have a responsibility to take reasonable precautions to ensure the suitability of your tenants. These simple steps can help keep your property safe and satisfy your obligation to take reasonable precautions.
- Do not accept any payment of rent in cash; insist on payment via a bank.
- Be wary of short-term lets.
- Employ rigorous vetting of a prospective tenant, requesting references that can be checked.
- Ensure you inspect the premises regularly with a thorough internal viewing if possible.
- Do not allow sub letting.
- Employ a letting agency or managing agent to manage the tenant vetting process and provide an inspection service on your behalf to identify any misuse of the premises early on.
- Be vigilant at all times