The number of cases in which commercial premises are used for criminal activities has been increasing for some time. This often involves the production or storage of drugs, but human trafficking and other illegal activities also occur. For landlords, this entails significant risks, not only regarding the condition of the property itself, but also legally and financially. The landlord may face high costs and even criminal consequences
Criminal use of business premises
When a property is used for illegal activities, such as a drug laboratory, this can have far-reaching consequences for the landlord. First of all, the risk of damage to the commercial premises is significant. Drug labs, for example, entail substantial risks. This involves not only the risk of fire damage, but also, for instance, the risk of chemical contamination and physical damage to the property. In the worst-case scenario, a building can be declared unusable for years due to chemical contamination. Other illegal practices, such as human trafficking, can also severely affect the condition of a property. This is because criminal tenants often treat the rented commercial space with great disrespect.
In addition to physical damage, there is also a financial risk. Insurers generally do not cover damage caused by drug labs. The municipality may also decide to close the premises for an extended period. This means that, as a landlord, you risk long-term loss of income. Mortgage lenders may also decide to terminate the loan due to criminal activities. Energy companies, in turn, may require the landlord to reimburse the costs of illegally tapped electricity. Finally, involvement in illegal activities can damage your business's reputation.
Prevention is better than cure: tips to avoid criminal use
Preventing criminal abuse begins with carefully selecting and screening tenants. Always be alert and critical of prospective tenants. Additionally, avoid cash payments. It is wise to always maintain a digital payment trail and receive payments directly from the tenant, not from third parties. Furthermore, get to know the prospective tenant personally. Always verify their identity and request a Certificate of Conduct (VOG) as an additional check.
Is the tenant a business owner? If so, request an extract from the Chamber of Commerce and verify whether the person is authorized to sign a lease agreement on behalf of the company. Additionally, have the tenant conclude a contract with the energy company themselves and request a copy. Also, record the meter readings upon handover of the property. Furthermore, establish clear agreements in the lease agreement: clearly state in the contract what the property may be used for. Also stipulate that you retain a key for emergencies and that you may inspect the property regularly.
Regular supervision and recognizing signs of abuse
Active surveillance can help detect criminal use early. Drive past the property occasionally and check if any activity takes place during the day. If there is little activity during the day but a noticeable amount at night, this may be considered suspicious. In this case, discuss the use of the property with neighbors. They can sometimes provide important information about suspicious behavior. Other matters can also raise suspicion, such as the absence of corporate branding (logos or business vehicles) or unusual additions to the property, such as extra locks, new ventilation ducts, or waste that does not fit the activities of a legitimate business.
Intervening in cases of suspected criminal use of business premises
If you suspect that criminal activities are taking place in your property, please contact the police. This can be done via the general number or via Meld Misdaad Anoniem (Report Crime Anonymously). If criminal activities are actually confirmed, we recommend engaging a lawyer as soon as possible. A lawyer will guide you in handling the situation correctly and will also determine to what extent the damages suffered can be claimed from the tenant.
