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Big
rise in cannabis 'factories' be vigilant warns Landlords Organisation
__________________________________
From
the jml
Property Insurance Blog site 22nd March 2009
The
National Landlords Assocation (NLA) has issued a warning to
Landlords
to be vigilant of the way
their properties are used, following a BBC report into cannabis
factories. According to the report, 29 police forces across
the UK revealed a sharp rise in cannabis being
produced in ‘factories’ inside rented housing. Although this
is not a new problem, the NLA is reminding landlords to be
aware of what could be going on behind the doors of their
properties.
In
June 2008, Aviva (Norwich Union Insurance) issued a press
release stating that Residential may not be covered
if their property is damaged by tenants using it for cannabis
production.
In
his career as a letting agent, Philip Suter of jml Property
Services has come across tenants who had set up a small factory
in an attic in Thame in Oxfordshire and in a garage in Iver
in Buckinghamshire
The
NLA report warns Landlords to be on the look out for the following:
- Strong
smell of de-odourisers or air fresheners to disguise the
smell of drug production
- Lights
being left on all day and night and curtains and blinds
drawn
- A
sudden jump or fall in electricity bills
- Possible
rewiring
- High
humidity in the property
The
Aviva/ Norwich Union report says: Listed below are some common
trends to help identify the typical methods for growing cannabis.
- Cannabis
plants are typically grown in individual pots throughout
the property, with walls, ceilings and doors lined with
plastic or polythene.
- Windows
will normally have blinds or curtains closed to obscure
any activity.
-
The plants are irrigated through pump spray guns, such as
those used in a domestic garden, rather than having garden
hoses plugged into a sink or basin
- High
powered lighting is installed in each room and the electricity
has probably been tampered with to bypass the meter.
- A
considerable amount of condensation is produced
- A
pungent smell, which may be noticed through the walls of
adjoining properties but ducting and extractor fans are
installed and fed through the chimney or flue to prevent
this.
Landlords
if you are managing the letting of your property carry out
regular inspections and make sure your letting agent carries
out thorough inspections if the agent is managing a property.
If you or the agent can't get into an individual room, outbuilding
or garage, it could mean that your tenants have a cannabis
factory set up. There course can be a totally innocent reason
for not being able to gain access. Take
care and don't risk your
insurance.
©
Philip Suter of jml Property Services March 2009
Press release Landlords:
could your property be housing a cannabis factory? 11
Mar 2009
The
National Landlords Association (NLA), the leading representative
body for private-residential landlords in the UK, is warning
landlords to be vigilant of the way their properties are used,
following a BBC report* into cannabis factories.
According
to the report, 29 police forces across the UK revealed a sharp
rise in cannabis being produced in ‘factories’ inside rented
housing. Although this is not a new problem, the NLA is reminding
landlords to be aware of what could be going on behind the
doors of their properties.
Horror
stories include a landlord who took six months’ rent up-front
from a tenant, only to find the police knocking at his door.
The tenant had demolished the internal walls of the property
to create polytunnels where he was growing cannabis.
More
worryingly, this kind of criminal activity may not just be
producing cannabis. The NLA has heard of methylamphetamine
(commonly known as crystal meth) also being produced in rented
properties.
The
process, while illegal, is also highly dangerous owing to
the nature of the highly flammable elements used in producing
the drug.
Police
recommend that landlords complete full and proper reference
checks with both previous employers and previous landlords
before entering into a tenancy agreement to avoid taking on
criminal tenants.
LANDLORDS
SHOULD LOOK OUT FOR: **
- Strong
smell of de-odourisers or air fresheners to disguise the
smell of drug production
- Lights
being left on all day and night and curtains and blinds
drawn
- A
sudden jump or fall in electricity bills
-
Possible rewiring
- High
humidity in the property
David
Salusbury, Chairman, NLA, commenting on the increase of cannabis
factories in rented properties, said:
"Naturally
this kind of news is worrying for landlords, but by taking
references and making regular visits to your property, these
problems can be avoided. "The onus is on landlords to know
what is going on in their property; if not they may find themselves
responsible for utility bills, or facing huge repair bills
if their property is used in the production of illegal substances."
*
BBC:
'Big rise in cannabis factories'
**
Advice taken from Gwent Police
See
also: Residential
property owners need to be vigilant, with cannabis farming
on the increase, warns Norwich Union June, 2008
Residential
landlords may not be covered if their property is damaged
by tenants using it for cannabis production, warns Norwich
Union (Aviva). Mike Colmans, underwriting manager, property
owners, Norwich Union, said: "As with most insurance policies,
the duty of care element means a landlord must protect his
investment and minimise his losses. This means it is important
to be aware of the warning signs and make sure all ‘reasonable
precautions' are taken."
He
went on to say."With cannabis farming clearly on the
ris, 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 cannnabis, they may
not be covered".
During
2006/2007 there were 5,497 seizures of cannabis plants by
police which was a 34 per cent increase since 2005. In 2007
Norwich Union (Aviva) settled around 60 residentialclaims
totalling over £1 milion. Damage fromclaims can vary
from holes in walls to water or fire damage.
Mike Colmans went on to say " Vetting the tenant is essential,
as is carrying out extensive background checks including checking
bank details and references. Don't accept payment for rent
in cash, but instead, insist it is paid through a bank. Landlords
should be wary if a short term let is requested and sub letting
should be discouraged. Once the tenant is in the premises
carry out regular inspections, both externally and internallyif
possible."
In
a news report in "Landlord & buy-to-let magazine"
there was a quote from a spokesperson for Greater Manchester
Police whose Operation Dragonfly targets commercial cannabis
farms warned " Electricity illegally extracted by the
growers to power lights and fans can total tens of thouands
of pounds and the utilities companies will seek to recover
the cost from landlords".
The
Greater Manchester Police warn landlords to keep a look out
for people arriving and leaving the property at randlom times
of the day and night, a pungant aroma in the area, large amounts
of electricalwiring, chemical and compost and blacked out
windows or bright lights all night long.
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