‘Check rental properties regularly’ police urge landlords as cannabis farm epidemic spreads

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Landlords are being urged to carry out regular checks on their properties if they suspect tenants are hosting cannabis farms following a nationwide boom in the illegal industry over lockdown.

Police forces say the last few months have seen a proliferation of cannabis farms being created, with increased numbers of raids as a result.

West Leicester police report closing down at least one cannabis set-up every week, while Nottinghamshire Police have seen a rise of 280% in cannabis plant seizures during lockdown compared to the same period last year. 

Nationally, police say more than 90% of cannabis farms are set up in residential properties, with rental homes particularly attractive as there’s no paper-trail – the properties can’t be connected to the gangs running the operations.

Foul play

Leicester police are appealing directly to landlords and agents who suspect foul play to look in on their homes, at least from the outside, every three months – about the time it takes for a cannabis plant to provide a yield – which they believe would deliver a significant blow to the illegal trade and deter others from setting up in the area.

Law firm Hägen Wolf suggests that landlords, and any helpful neighbours, should keep a detailed log of conduct such as night-time visitors, strange noises, or any funny smells, which might indicate that illegal activity is taking place, and ideally supported by photographs and videos.

Solicitor Philip Copley adds: “If it is safe and possible to report the matter to the council or police, then do so – that can create a paper trail which strengthens the landlord’s case.”

The tell-tales signs of a cannabis factory include excessive fortification, silver duct tape hanging out of windows, blacked-out windows or windows with condensation, peeling wallpaper or mildewed walls, a pungent smell or sudden fluctuations in electricity bills.

Read more cannabis farms stories.

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Commercial landlords fear the worst as the final quarter’s rent becomes due

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Landlords are bracing themselves as they survey the damage already inflicted on quarterly rent collection rates as they anticipate those for the final period in 2020.

With employees once again being told to work from home, a 10pm curfew on food and beverage businesses, many leisure outlets in total lockdown and with the threat of even harsher lockdown restrictions to come, there is every chance of the proportion of tenants in the retail and leisure sectors withholding rent rising still further.

So far only 22 per cent of nation’s shops, offices and warehouses’ rent has been collected for the final quarter. According to Re-leased, a commercial property management platform, basing its figures on 35,000 leases, retailers have to-date paid only 13% of the rent owed for Q4, 2020; it’s the lowest collection rate seen since the pandemic began.

Office tenants were better at a payment rate of 32% which is slightly up on the payment rate for previous quarters, as was the rate paid by industrial tenants at 18.3%, but still these are scary figures.

By the end of August, retail landlords had collected around 59 per cent of second quar­ter rent and 60 per cent of that due for the third quarter, according Re-Leased, but this was less than that achieved for the office and industrial sectors.

The government’s extension on the ban on forfeiting leases due to non-payment of rent, to the end of 2020, has given tenants the confidence to withhold rents even when funds are available, while landlords’ room for manoeuvrer has been severely restricted.

Many landlords have reach agree­ments with their tenants, including setting-up rent re-pay­ment plans, waivers and lease restruc­turings. The parties recognise the immense stress being placed on retail high-street and other outlets.

In the short term at least, the balance of power has been shifted in the favour of occupiers, with some tenants resorting to threats and forceful tactics to secure more favour­able lease terms. It is perhaps understandable that smaller, independent retail and leisure outlets would wish to withhold rent, but many large operators are also joining in.

Big-name brands, notably JD Sports (JD.), have been attracting the ire of landlords over their decision to partially withhold rent despite sitting on quite large cash piles. The sports fashion retailer has argued with its landlords that it would be unfair to pay full contractual rents when there “is no realistic prospect of any income from a store”.

Another example is Boots withholding rent as it seeks to put the “relationship with our landlords on a more modem and equitable footing”. This follows a rapid decline in Boots’ footfall since the start of the pandemic. Store owners Town Centre Securities has said it has not received a penny since Boxing Day last year.

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Veteran Landlords Decimated by University Crisis

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In a shock move, the University of Warwick has pulled the rug out from under more than 500 Coventry and Warwickshire landlords.

After guaranteeing some 3,000 plus students for over 500 properties they are now saying to ALL those landlords “So long

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MARKET WATCH: Rents for new tenancies increase as demand booms across the UK despite Covid

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Rents on new tenancies went up for the third successive month in September across the UK, boosted by strong tenant demand.

Rental values in seven of the 12 regions monitored by HomeLet have risen by an average of 0.2% since August, with the average rent now £987 a month – up by 4% since June – according to its latest Rental Index.

The North East saw the biggest jump (2.2%) followed by Wales and the East of England (both 1.4%). Northern Ireland and the North West experienced the largest dips with -1.6% and -1.4% respectively.

Over the last year, HomeLet reports that the South West has seen the biggest increase in agreed rents at 6.6%, while rents in London have slumped -2.8% and there’s been a -2.4% drop in Northern Ireland year-on-year.

Chief executive Martin Totty (left) says landlords will be encouraged to see rents continuing to hold up, which he attributes to strong tenant demand with a slightly constrained supply and stronger sales market – possibly a short-term phenomenon.

Adds Totty: “Those landlords committed to the sector for the long term and having shown their willingness to confront the multiple headwinds of taxation change, new regulatory requirements and, in certain circumstances, longer notice periods to gain possession of their properties, may still be rewarded for their flexibility and their perseverance with reasonable returns on their investment risk.”

Visit Homelet

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Landlords pay for Council incompetence

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Yes, their incompetence is blatant to those who have to challenge them on a daily basis. The arrogance and aggressive methods are leaving landlords terrified and they produce no evidence because they claim they don’t have to.

You may not want to believe this

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Unexplained insurance premium hike?

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Underwriter is Allianz. Previous annual increases, with no changes to the portfolio, have been 7.6%, 7.5, 4.6, 4.5. This time its 17.7%.

The broker is discussing it with the insurer and I am looking at going elsewhere of course.

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BREAKING: Lettings agents must soon tell landlords if their ‘recommended supplier’ earns them a fee

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Landlords who buy or let properties through an estate agent will soon have to be told if a recommended third-party supplier such as an inventory firm or builder has paid a referral fee to the agent.

This follows an announcement by Trading Standards that, following a long investigation, it found that many agents continue to hide referral fees from their customers.

A critical report has now been published by the Trading Standards Estate and Lettings Agency Team after being passed to ministers in February.

It says: “In some situations, customers may be pressurised to use a referred provider despite the fact it does not meet the needs of the customer or provide best value.”

The report recommends that the government should:

• Make transparency of referral fees mandatory.
• Require a warning to be given to customers that they should consider shopping around.
• A public awareness campaign to warn consumers about hidden referral fees.
• Further industry guidance, and work with the professional bodies and redress schemes to encourage compliance in the property sector.

Ministers have backed the report’s findings although it is now up to them whether new legislation is introduced or existing consumer protection legislation is more strictly enforced, including a ban for errant agents.

“It is unacceptable that unscrupulous practices are still taking place where consumers are not being made aware of referral fees when buying or selling a property,” says housing minister Christopher Pincher (left).

Sean Hooker (left), Head of Redress at the Property Redress Scheme, says: “I was on the working group with the MHCLG and NTSELAT along with TPO, Propertymark, RICS and the Guild that helped draw up guidance for agents as part of a voluntary trial of disclosure and transparency.

“Whilst the guidance was followed by many businesses, the NTSELAT report shows that more is needed to be done and whilst they have fallen short of recommending a full ban, the introduction of mandatory disclosure is required.

“This is the correct and proportionate response to protect the consumer and reduce the complaints against agents.”

Mark Hayward (left), Chief Executive of NAEA Propertymark:“New legislation which will require agents to display referral fees is a step forward, providing clarity to agents that they mustn’t fall foul of the law but importantly ensuring greater transparency for consumers to avoid any confusion about what agents are charging for.”

Read the report.

Find out more about redress when things go wrong with your agent.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Lettings agents must soon tell landlords if their ‘recommended supplier’ earns them a fee | LandlordZONE.

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