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If you do not actively keep checks on your buy-to-let investment you could be seriously out of pocket as a victim of crime, according to the National Landlords Association.

The NLA says rental properties are being targeted by criminal gangs as a cover for illegal activity. Criminals are renting properties to use them as cannabis and crystal meth factories. But it’s not just drugs – prostitution is also found across the private-rented sector, with homes being used as brothels.

Unfortunately, when these kind of crimes take place, it’s the landlord who ends up footing the bill. Many insurance policies are rendered invalid when criminal activity takes place in a property and the damages caused can run into thousands of pounds.

David Salusbury, chairman of the NLA, says: “It is vital landlords are aware of the threat these criminals pose. Criminal activity not only has an impact on the landlord’s property, but on the community as whole. The production of some drugs involves highly flammable material, which poses a dangerous fire risk. You may think ‘it will never happen to me’, but these incidents are on the increase. The checks you make before a tenant moves in are a key way to prevent becoming a victim of these crimes.”

The key to good buy-to-let investment is vigilance. Be careful who you rent to, don't be a stranger in your own property and always make sure that your property is working how it should, making you as much money as it should.

SOURCE: NLA, 08/02/10

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