'Des res' with cannabis farm

Increasing numbers of residential properties are being illegally used for cannabis production. Besides the damage landlords face to their property - and the hefty repair bills - cannabis farms are a real risk to residents close by.

What's the damage?

It's significant from the claims we've seen for fire, flood and physical damage. Electricity meters are often bypassed with poor and dangerous wiring. Holes are smashed in walls to
accommodate cables. Severe water damage is common because of leaking buckets and pipes. The perpetrators even start fires deliberately to cover their tracks before police raids.

Better safe than sorry

From the claims we've received, we've been able to identify some common characteristics worth looking out for. This information might be useful for your residential property clients
so feel free to pass it on.

What to watch out for:

• short-term lets of between three and six months
• where a chunk of rent is paid in cash upfront (sometimes in full)
• where tenants continually fail to provide references.

What cannabis growers look for when 'house hunting':

• landlords who don't use a managing or letting agent
• landlords who don't vet tenants sufficiently with background checks (just seeing a passport isn't a good-enough check)
• landlords who don't inspect properties internally regularly
• where sub-letting is allowed and there's no control of sub-tenant activities.

Location, location, location...

Cannabis farms crop up everywhere it seems, including at the most highly desirable addresses.

Avoiding the problem

Here are some precautions that you may want to pass on to your residential property clients.

• Don't accept payment of rent in cash. Insist on payment through a bank or building society.
• Carry out regular inspections of premises, with internal viewings.
• Be wary of short-term lets without undertaking rigorous vetting of the prospective tenant.
• Don't allow sub-letting, whatsoever.
• Employ a letting or managing agent as they will vet tenants
  and undertake inspections on your behalf.

Although cannabis farms rarely make the news, they're more common than you might think. Look out for our coverage of this topic in the press shortly.

We hope this prevents your customers discovering a nasty surprise. For further information, ask your account manager.

Published: 16/06/2008