Police are uncovering a persistent trend of rental properties being repurposed as cannabis grow houses, with 17 recent discoveries in West Auckland alone.
Insurance Implications and Claims
Cannabis-related insurance claims have risen by approximately 17 percent over the last five years, according to an AMI spokesperson. While coverage is available, it is not guaranteed. Dan Walker, chief claims officer at Tower, notes that insurance claims are assessed on a case-by-case basis. Walker advises that landlords should secure insurance policies specifically tailored for rental properties rather than relying on owner-occupier coverage. These policies may provide capped cover for deliberate damage, loss of rent, and methamphetamine decontamination. However, an Insurance Council of New Zealand spokesperson warned that policy wordings vary, and landlords must be aware that specific exclusions, conditions, and limitations could apply to their coverage.
Procedures for Suspected Grow Houses
If a landlord discovers their property has been used for cannabis cultivation, the immediate priority is to contact their insurance provider. According to the Insurance Council of New Zealand, insurers can clarify how a policy will respond and what specific documentation is required to process a claim. Property law expert Joanna Pidgeon emphasizes that landlords must not enter a rental property without providing formal notice, even if they suspect the tenant has vacated. If a landlord believes a property has been abandoned, they may enter with 24 hours’ notice—plus service time—only if the rent is at least 14 days in arrears and they have reasonable cause to believe the property is empty. Otherwise, Pidgeon recommends attempting to contact the tenant in writing to request the return of keys or speaking with neighbors to gather information.
Legal Recourse and Property Repossession
Landlords seeking to regain possession of a property and claim compensation for damages or unpaid rent must engage the Tenancy Tribunal. Pidgeon notes that an expedited abandonment application can facilitate the return of a property within 10 working days, provided specific legal requirements are met. For broader claims, such as rent arrears or repair costs, a standard application is required. Success in these claims often depends on evidence; Pidgeon advises landlords to document all attempts to contact tenants, obtain a copy of the police report, and maintain comprehensive “before” and “after” photographs of the property to substantiate repair costs.
Managing Abandoned Tenant Belongings
Landlords are legally prohibited from simply discarding items left behind by former tenants. According to Tenancy Services, perishable goods may be disposed of immediately, but other items require a formal process. Landlords must attempt to contact the tenant and provide a reasonable timeframe for collection. If the tenant remains unreachable, the landlord may apply to the Tenancy Tribunal for an order to dispose of, sell, or return the goods. Personal documents left behind must be stored securely for 35 days; if they remain unclaimed, they may be handed over to the police, provided the landlord receives a receipt.
Preventative Measures for Landlords
Experts suggest that proactive management is the most effective defense against criminal activity. Pidgeon recommends that landlords conduct thorough reference and credit checks before accepting tenants and ensure they have an electronic address for service. Regular inspections are also critical, with Pidgeon noting that insurance companies often mandate inspections every three months as a condition of coverage. Sarina Gibbon, director of Tenancy Advisory, reminds landlords that cannabis cultivation is a time-intensive process. Owners are encouraged to monitor for red flags, such as blacked-out windows, DIY ventilation systems, mold or high humidity, and tampered electricity meters. Keeping exterior hedges and shrubs trimmed is also recommended to ensure the property remains visible to neighbors, which may deter potential illicit use.
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