Commercial landlords are being warned to beware of the risk posed by drug gangs renting properties for the cultivation of cannabis.
The damage caused by cannabis farming tenants can be extensive, warns David Robbins
Earlier this month, a man was jailed after a cannabis farm was discovered in a rented industrial unit in Mitcham. The tenant concealed his illegal activity under the guise of a phoney company, even installing a reception area to add to the illusion of respectability. But when police raided the property they found in the region of 500 cannabis plants hidden behind false walls.
Late last year, a haul of plants with a street value of £2.5 million was discovered in a warehouse in South London. Following the raid, safety officers warned of the fire risk posed by these operations, which involve the installation of heating and lighting equipment and the re-routing of the electricity supply.
Other cases in recent months include raids on shops in Liverpool and Grimsby and the discovery of a cannabis farm in a warehouse in Shepperton. Here, the tenant was found to have stolen the name of a genuine business to rent the property.
Now commercial managing agent Prop-Manage is advising commercial property owners to beware of cannabis farming tenants who can end up costing landlords thousands of pounds.
“Drug gangs unfortunately see the rental market as an easy target when identifying a property,” explains Prop-Manage head of management David Robbins.
“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 of the growing number of claims from property owners whose premises have been damaged due to this activity, insurance companies are becoming increasingly concerned.
Prop-Manage advises landlords to check their policies to ensure that they are covered for malicious damage by a tenant and that this does not exclude illegal acts such as cannabis farming.
“Often, even if cover is provided, insures will expect reasonable precautions to be taken such as tenant referencing and regular checks of the property,” Mr Robbins warns.
“Landlords should also be wary of tell-tale signs such as the offer of cash rental payments from tenants,” he adds.
