Illegal use of rental property becomes concern for landlords
The illegal use of residential rental properties is becoming an increasing concern for landlords, with reports suggesting that a growing number of rental units are functioning as cannabis operations. When tenants use their rental properties for illegal activities, they will almost certainly cause many legal and financial difficulties for their landlords. Properties that have been turned into cannabis factories will often have internal walls demolished and manipulated electrical wiring, which will force the landlord to spend large amounts of money on repairing the damage. Even more troubling is the fact that many insurance policies will not offer any coverage for such repairs, if the property was used for illegal purposes.
One of the biggest dangers when properties are used as cannabis grow operations, is that the tenant will often install or manipulate existing electrical wiring, which greatly increases the risk of a fire. Landlords will also be blocked from accessing the property, if it becomes the subject of a police investigation or if it turns into a crime scene, which can lead to several months of lost rent.
Fortunately, vigilant landlords can take a number of steps to ensure that they do not find themselves in this predicament. Most importantly, landlords should be on the look out for warning signs. For example, landlords should not accept six months rent in advance, even if a tenant insists on paying. This may be a sign of potential trouble. Additionally, it is important to visit the rental property at least once every quarter, to ensure that everything is in good order.