Lessons Learned: How I Discovered a Marijuana Factory in My Rental Property

You’d think that as the CEO of No Letting Go, the UK’s leading provider of inventory and property reporting inspections, and Kaptur, the provider of software for property reporting, with most of my career spent in the lettings industry, I wouldn’t be caught out by such a major issue.

I’m writing this article to highlight the pitfalls landlords can face, and to share what I’ve learned from my experience.

As a small landlord with a handful of properties in and around South London, which I’ve owned for many years, I’m just as vulnerable to the challenges any other landlord might encounter. I consider myself a meticulous landlord. I don’t cut corners: I use a well-known, reputable letting agent, ensure all properties have deposit protection (some with traditional schemes like mydeposits and others through insurance-backed deposit schemes like Flatfair), and always take out rent protection insurance through reputable companies. I make sure all mandatory compliance requirements—like electrical, gas safety, and EPC—are met, and even take care of less-known obligations, such as legionella risk assessments. Naturally, I also insist on detailed inventories, signed check-ins, quarterly property visits, and independent check-outs.
As a busy professional running another business, I want to avoid unnecessary issues that could have been prevented.

How It All Happened

Despite all my precautions, I ended up discovering a fully operational marijuana factory in one of my flats, unbeknownst to me – and worse, my letting agent had no clue either. Here’s how it unfolded, and the lessons learned.

The property in question is on the third floor of a block in Southeast London, a popular rental area. I’ve owned it for many years. Four years ago, the agent found a new tenant after the previous one moved out. The tenant was referenced, insurance was taken out, and everything seemed routine. The tenant moved in, paid rent on time, and allowed mid-term inspections, often without being present, as he gave permission for the agent to enter. Everything seemed perfect—no hassle at all.

The first sign of trouble came after a year when neighbours noticed the windows were blacked out with paper. They raised concerns, calling both the police and the agent to check. This happened several times. On each occasion, the agent conducted an inspection, and the police spoke to the tenant, but nothing seemed amiss. The tenant explained that he worked nights and blacked out the windows to sleep during the day. It seemed plausible, so no further issues were raised.

What we didn’t realise at the time was that this story was likely crafted to put the neighbours at ease, while they covertly set up a marijuana farm in the property.

Fast forward to August 2024. I received a call from the estate management company informing me that the fire brigade had been contacted because water was leaking into the flat below mine. The tenant below had called the fire brigade after being unable to reach my tenant. The fire brigade forced entry to stop the water leak and discovered the source—an irrigation system malfunctioning in my flat.

The Discovery

The fire brigade found an elaborate marijuana operation in the property. When I arrived with the letting agent, the estate management agent, the fire brigade, and the police, the property was in complete disarray. Every room was filled with marijuana plants, chemicals, grow bags, water filtration systems, and a tangle of venting and heating equipment used for growing and harvesting. No one was living there – it appeared the entire setup was being controlled remotely. The electrics had been tampered with and bypassed the meter, ceilings were damaged to install venting systems, and the property was completely uninhabitable.

The police informed me that they would secure the property, remove the plants, and then I could clear and repair it. They warned me that it was unlikely anyone would be charged, as finding the responsible individuals was low priority. We later found out the tenant claimed he had sub-let the flat and knew nothing more.

The plants were removed, and the property is now being cleared. The overall cost of repairs—including removing the equipment, fixing electrics, painting, carpets, and damage to the flats below—is expected to reach £10,000.

What Went Wrong

Naturally, my first question to the agent was: how did you miss this during your mid-term inspections? It was impossible to overlook. The agent then admitted they hadn’t been able to complete any inspections in the past year. The tenant always had an excuse, and because of his good track record, they didn’t push further. In fact, as we later discovered, the tenant had sub-let the property and was living in France. He likely didn’t want the agent to know, as he was either receiving more in rent than he paid me or was involved in the illegal activity himself. We’ll probably never know the full story.

Legal Considerations

I challenged the agent by referencing the Landlord and Tenant Act 1985, specifically Section 11, which gives landlords the right to enter the property with 24 hours’ written notice. If the tenant doesn’t respond or refuses entry, the landlord cannot legally enter. However, in cases of urgency (like a gas leak or flood), the landlord can enter without permission. Suspicion of illegal activity, however, is a grey area.

After consulting with legal experts, I learned that landlords or their representative have the right to enter for:

1. Property inspections to ensure it’s in good repair.
2. Repairs and maintenance to comply with Section 11 obligations.
3. Emergency access in cases like gas leaks or flooding.

If the tenant refuses access without a valid reason, you can serve a formal breach notice. Failing that, you can apply for a court injunction to gain access. In emergencies, landlords have the right to enter without notice but should document the situation thoroughly.

Lessons for Landlords and Lettings Agents

This case should have raised red flags. The agent should have arranged to meet me at the property if access was repeatedly denied. Had this been done earlier, we might have discovered the problem before it escalated.

Fortunately, some costs will be covered by insurance and the deposit protection scheme. Detailed inventories, mid-term inspections (up until the issues started), and an independent check-out – all logged through Kaptur software – are crucial pieces of evidence. This documentation will help in recovering costs and claiming against insurance.

The most important takeaway for landlords and agents is the value of thorough documentation. Evidence is essential, not only for deposit claims but also for insurance purposes. While I’ll recover some costs, the agent’s failure to conduct inspections has cost me thousands – not an easy conversation for any agent to have with their landlord, and one that certainly affects their reputation.

Watch the full webinar of Nick Lyons discussing the challenge he faced: