Cannabis Farms - How landlords can protect themselves

Police define Cannabis cultivation as “Commercial” if more than 25 plants are found at one property. A crop of cannabis plants is defined by Police as a “Farm” if equipment used to grow cannabis is located at the property, e.g. high intensity lighting, ventilation equipment, etc. Designation of a crop as “Commercial” and a “Cannabis Farm” has implications in the severity of criminal charges which can be brought.

Cannabis can be harvested every 11-13 weeks, so tenants could grow 4 crops during a 12 month tenancy! The Guardian Newspaper reported on 11.4.13 that fire services were reporting rising numbers of Cannabis Farm-related house fires, triggered by criminals re-rooting electricity supplies.

Typical losses incurred by Landlords over Cannabis Farms include;-

1. Damage caused by Police breaking in (Police are not liable if executing a valid Warrant),

2. An empty property after police have removed the Cannabis (and the criminals/tenants do not return!),

3. Possible structural damage to the property (some criminals remove interior walls to create larger surface areas for growing),

4. Insurance Policy excess,

5. High deposits demanded by electricity suppliers (if tenants have bypassed the electricity supply),

6. No insurance cover! (Landlord policies invariably exclude losses incurred arising from Cannabis Farms).

Flat Leaseholder Landlords also face possible sanctions;-

1. Forfeit of their Lease by their Landlord (Leases invariably contain clauses permitting Forfeiture if the Leaseholder permits unlawful activities in their flat),

2. High future Insurance Premiums (or even a refusal by insurers to offer cover at all!),

3. Criminal prosecution for allowing a cannabis farm to be sited in their property!

What should Landlords do to protect themselves?

1. Undertake robust ID checks on proposed tenants/demand that their agents do also, e.g. obtain photocopies of passports/ driving licences, as well as references from previous landlords, employers, etc,

2. Only accept rent payments by bank transfers or by cheques from a UK bank account,

3. Ensure their tenancy agreement permits regular inspections by the landlord/agent,

4. Ensure inspections include any garage, etc. under the tenancy,

5. Keep written records of all inspections (even asking tenants to sign dated copies of inspection records).

Landlords must be vigilant because the potential losses they face from Cannabis Farms in their properties can be high, including even a loss of their liberty!