600 plants of cannabis, worth an estimate of £200,000, were founded in a buy-to-let property in Northamptonshire (Kettering area) on Saturday, which has increased the legal and financial concerns of landlords.

Background

The second cannabis factory in two weeks was founded in a buy-to-let property in Kettering area, Northamptonshire. 600 plants (150 mature plants and 450 small plants) of Cannabis - worth £200,000, were discovered in a semi-detached house on Havelock Street in Kettering on Saturday; which was followed by 500 (£130,000) cannabis plants founded on Lindsay Street in the same area the week before. This suggested an increasing concern of the purposes and functions of the rental units.

Landlords should be aware of what kind of tenants they are taking in as well as the signs and possibility of cannabis factories. Internal walls demolishing as well as manipulated electrical wiring can be observed as signs of cannabis activity.

“Costs” of your rental property as a cannabis factory

If cannabis activity happened in your rental property unfortunately, you - as the landlord - have to deal with a number of aspects:

-         As some of the insurance does not cover any damages due to illegal purposes, landlords have to spend a large sum of money to repair the damages. It is, thus, highly advisable to check with your insurer and its insurance documents carefully in case anything happens.

-         There is a high risk of fire when electrical wiring has been manipulated; hence, it may take months for the property to be recovered to what it was used to be.

-         Properties as cannabis factory are usually seen as a crime scene and access to the properties is often blocked for investigation. Thus, it will result in loss of rent for several months.

Advice to prevent cannabis activities in your rental property

1. Run a complete full tenant referencing to check the background of your tenants - references from previous landlords and employers are important.
2. Do not accept and take up a block of rent in advance (which could be a sign of illegal activity).
3. Visit the property regularly, at least once every quarter.
4. Ask your neighbours to keep an eye on your rented property if possible.

Get rent guarantee insurane from Discount Landlord Insurance.