Landlords warned of cannabis-farming tenants

Friday, 13 February 2009 12:00

Landlords are warned to vet their tenants carefully amid a rise in cannabis farming.

Norwich Union settled around 60 residential claims totalling over £1 million in 2007 for damage as a result of tenants using the property to grow cannabis, and the insurer is urging landlords to stay vigilant to protect themselves.

These cases are on the increase, the insurer added. During 2006/2007, there were 5,497 seizures of cannabis plants by police, an increase of 34 per cent since 2005.

Mike Colmans, underwriting manager for property owners at Norwich Union, said: "With cannabis farming clearly on the rise, there is an increased risk for landlords and their properties.

They may not be aware that if their property is damaged by tenants using it for the production of cannabis, they may not be covered if they haven't taken 'reasonable precautions' to prevent it happening."

Carrying out extensive background checks, including checking bank details and references could weed out any unsuitable tenants, the insurer said.

In addition, do not accept payment for rent in cash, insist it is paid through a bank, and carry out regular inspections.

The damage caused to a property due to a cannabis farm can be extensive, ranging from severe water damage due to the plant irrigation system, to holes made in walls to pass cables from one room to another.

Tenants may also start a fire - either deliberately to cover tracks if there was the threat of a police raid, or accidentally due to the use of high-powered lamps.

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