Vetting services 'essential for landlords'

News Category: Management

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Landlords have been told that using vetting services from letting agents can prove essential in avoiding a "financial nightmare" because of the activities of problematic tenants.

The warning, from Norwich Union underwriting manger Mike Colmans, comes after research by the insurance firm found that there were 5,497 seizures of cannabis plants by police between 2006 and 2007.

He urged private landlords to take precautions because failure to do so could prove costly if their rental homes are used as cannabis farms.

Indeed, a man from Sussex who rented out his home while on holiday faced property damages worth £70,000 after tenants used his home for a cannabis farm, the Argus reported last month.

In 2007, insurance claims related to this problem reached a value of more than £1 million, but Mr Colmans said insurers can refuse to accept property damage claims if a landlord is found to have neglected his responsibilities.

"Vetting the tenant is essential," he commented. "As is carrying out extensive background checks, including checking bank details and references … We would recommend employing a letting or managing agent to manage the tenant vetting process."

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