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Cannabis farming has implications for landlords

It has become increasingly common for property owners to become the innocent victims of rogue tenants who rent a landlord's property with the sole intention of setting up an illegal cannabis factory warns commercial managing agent Prop-Manage.

The number of claims received by insurers for property damage caused by illegal acts continues to increase. A report - the Commercial Cultivation of Cannabis 2012 - by the Association of Chief Police Officers reported that the number of commercial cultivation of cannabis farms continues to rise with 7,865 being identified in 2011/12, an increase of 15% on the previous year. In Northamptonshire, during 2010/11 this stood at 142 farms with predictions of a substantial increase for the period 2011/12.

David Robbins BSc MRICS, Head of Management at Prop-Manage, said: “Drug gangs unfortunately see the rental market as an easy target when identifying a property. The damage caused through creating the right environment can be extensive and it is estimated that the average cost of repair could run into several tens of thousands of pounds.”

As a result, insurance companies are not surprisingly growing concerned. Landlords are advised to check to ensure their insurance policies include malicious damage by the tenant and that those do, do not specifically exclude claims made as a result of illegal acts such as cannabis farming.

David Robbins adds: “Often, even if cover is provided, insurers will expect reasonable precautions to be taken such as tenant referencing and regular checks of the property. Landlords should also be wary of tell-tale signs such as the offer of cash rental payments from tenants.”

Further information and advice on pro-active property management can be obtained from Prop-Manage - Tel: 01933 223300 or its website: www.prop-manage.com


Monday, February 3, 2014