Illegal activity in your rental: How to protect yourself as a landlord

There is no worse issue to deal with as a landlord than illegal activity in your rental property. It could be drug dealing, illegal subletting, or any other criminal activity taking place, and with either one, the implications can be severe. This could include extensive property damage or neighbour complaints, or at the very worst, legal liability for you as the landlord. 

However, ignoring the issue is never going to be the right solution, and so, legal action will need to be taken in order to protect your property and your reputation. Here, we’ll discuss how to identify red flags as a landlord and the necessary steps to take in order to protect yourself and your property.  Be sure to read this guide in full, as landlord insurance does not provide cover for illegal activity in a rental property!

Signs of illegal activity in a rental property

As with any issue at a rental property, early detection is key. Let’s discuss some of the most common tell-tale signs that there is illegal activity going on in your rental property. 

Drug use/cultivation (e.g., cannabis farms)

One of the most common signs that there is drug use at your rental property is the persistent odours, especially with cannabis. Let’s take a look at this in more detail: 

• Persistent odours: Strong, unusual, or chemical smells (e.g., cannabis, damp earth, bleach, ammonia).
• Property alterations: Blacked-out windows, constantly drawn curtains, or foil/boards covering windows.
• Environmental changes: Excessive condensation, humidity, or damp patches, especially on ceilings or walls, which will most likely lead to peeling paint or wallpaper.
• Unusually high bills: Significantly higher electricity or water bills.
• Electrical tampering: If there have been any signs of altered wiring or unusual cabling
• Suspicious activity: Are there frequent visits from many different people at anti-social hours? 
• Security measures: New or excessive security measures (e.g., additional locks, cameras).

2. Illegal subletting/overcrowding

Illegal subletting or overcrowding could also be an issue that you face. Here are some signs that this is taking place at your property: 

• Increased occupancy: Are there more people living in the property than are named in the lease? 
• Excessive waste: Are the bins overflowing? Or is there always an unusual amount of trash?
• High foot traffic: Is there always a constant stream of unfamiliar vehicles at the property?
• Internal locks: Are there internal locks installed in individual rooms? 
• Communication breakdown: Has the original tenant become difficult to contact?

Taking action

If you think that there is illegal activity in your rental property, you need to begin by gathering evidence methodically. 

Never self-evict your tenant by changing the locks or cutting off their utilities, as this is equally as illegal and can cause you severe penalties. Instead, review your tenancy agreement to re-familiarise yourself with the clauses that prohibit illegal activity. This will help you form a legal basis for any action you take. 

Next, make sure that you document everything meticulously and with as much detail as possible. Your documentation should include: 

• Dates and times: Record exact dates and times of all suspicious observations.
• Detailed notes: Write down specific details of what you see, hear, or smell.
• Photos/videos: these need to be legally obtained during a pre-arranged property inspection and can be powerful pieces of evidence. 
• Neighbour complaints: You can request that your neighbours provide you with written and dated statements (that are signed) detailing what they have witnessed and the impact this has had on them. 
• Communications: Keep copies of all emails, letters, and records of phone calls with the tenant.

Communicate (cautiously) with tenants

The seriousness of the tenancy breach will determine how and if you communicate with your tenants regarding next steps. For less serious breaches, a formal written warning referencing the specific clause that has been breached will be the first step. 

However, for more serious criminal activity, it is advised that you do not approach your tenant due to potential safety risks to yourself. 

Working with authorities

Knowing when and how to involve the authorities when there is illegal activity in your rental property is key to solving these issues. It is advised that you contact the police immediately if you suspect any serious criminal activity (like drug cultivation, drug dealing or violence). 

You can do so by using the non-emergency 101 number, or dial 999 in an emergency. You can also provide information anonymously through services like Crimestoppers (0800 555 111) if you fear reprisal. 

It will be in your best interest to cooperate fully with the police, as they will be able to enter a property and investigate the issue further if they have reasonable grounds to suspect criminal activity. 

If you do not need the help of the police, you can contact your local council’s environmental health or anti-social behaviour team for more persistent issues (for example, overcrowding, excessive noise or waste accumulation). Councils can often support in evidence gathering or can take direct action against a persistent nuisance. 

The Landlord and Tenant Act and illegal activity

Under the Landlord and Tenant Act, illegal activity elicits tenant eviction from the rental property. But there is a specific procedure involved in evicting a tenant for illegal activity. The Section 8 notice of the Housing Act 1988 is the notice that you can serve to begin the eviction process. Here are the different grounds on which you can serve the section 8 notice: 

• Ground 12: Any breach of a tenancy obligation.
• Ground 14: Nuisance or annoyance to neighbours, or using the premises for immoral or illegal purposes.
• Ground 15: Damage to the property.
• Ground 17: The tenant has been convicted of an offence involving the use of the property or allowing it to be used for illegal purposes.

You will need to serve a valid section 8 notice, specifying the grounds and providing adequate notice, before you can apply to the court for a possession order.

If the tenant refuses to vacate the property, you will need to apply to the County Court with detailed evidence. If the possession order is then granted, and the tenant still doesn’t leave, you’ll need to instruct county court bailiffs to legally remove them.

Protecting yourself from liability

The truth is that if you conduct your due diligence as a landlord, the chances of you evicting a tenant due to illegal activity will significantly decrease. Always conduct thorough tenant referencing, as this demonstrates you’ve taken reasonable steps in preventative measures as a landlord.

Do not turn a blind eye to the illegal activity in your rental property, as you could then be accused of permitting the activity, which could lead to potential criminal charges. You can stay on top of this by conducting regular property inspections and giving tenants the proper notice. 

Specialist legal advice from a solicitor experienced in landlord-tenant law is essential at every stage. They can ensure your actions are lawful, protect your interests, and minimise your personal liability, too.

Dealing with illegal activity in your rental property is undoubtedly challenging. However, when you take the time to educate yourself and to understand the signs of illegal activity taking place, you can then communicate with the relevant authorities. This will enable you to protect yourself and your property. 

For more information on how to protect your property as a landlord for other insurable perils, be sure to visit our resource centre.  At CIA Landlords, we have the expertise to find the best landlord insurance deals that are suitable for your needs. Contact us today at 01788 818 670 for a quote!