March 18, 2011
A record number of residential tenants are setting up cannabis farms in rented properties, that’s the warning from Insurance provider Aviva following a bumper crop of payouts to landlords in the past year.
According to Aviva, a record 92 of its registered landlords had their properties turned into illegal cannabis farms last year, a rise of 30%.
Nationally there were 643,510 cannabis plants seized in 2008/9 and this increased by 18% to 758,700 in 2009/102, according to Home Office figures. But it is often small-time cannabis factories, with 83% of seizures by the police last year being for 50 plants or fewer.
As a result, landlords are being warned to check their properties regularly and ensure their current tenants activities are completely above board.
"Despite the upgrade of cannabis to a class B drug two years ago the industry continues to grow. We settled 92 cannabis farming claims last year, which is the highest number Aviva has ever recorded,” said Matthew Gordon, Underwriting Manager for property owners at Aviva.
"Almost all of the properties were residential and we often find that it is part of a larger operation or that the policyholder has had a couple of properties affected.
"Cannabis farming comes with serious risks for landlords; properties can be completely ruined inside to make space for plants, water damage can occur and fire poses a risk due to interference with electrics or strong lighting left on for a long time.
In the wake of such alarming figures, Aviva has published a helpful guide for landlords eager to quash cannabis loving tenants. Property owners should be on the lookout for:
Walls, ceilings and doors lined with plastic or polythene;
Windows with constantly closed curtains or blinds;
Any high-powered lighting being installed and tampered electricity meters;
A considerable amount of condensation on the property’s windows;
Any pungent, uncommon smells.
"It's important that property owners take 'reasonable precautions' to prevent any damage occurring,” added Mr Gordon. “Employing a letting agent to manage the tenant-vetting process and provide an inspection service on the landlord's behalf is a good option as insurers could refuse a claim if a landlord has been found to neglect their responsibilities"
