There has been an increase in the number of business failures and this can often mean that commercial landlords are left with unoccupied properties.  With no lease income, the temptation is to reduce costs and often this can mean a reduction in security.

This can be a very high risk strategy –  a £40m building between High Holborn and Oxford Street was recently taken over by partygoers, the building was occupied for nearly 48 hours until the trespassers finally called an end to the party, leaving behind a repair bill costing tens of thousands of pounds. While this is an extreme example there have also been several documented cases of commercial properties being stripped out, suffering over £150,000 of damage.

Following the Ministry of Justice’s announcement that it is to urgently review legislative changes to make squatting illegal, VPS, the Vacant Property Specialist, is advising property owners and managers both not to be complacent and that prevention is the best deterrent against squatting.

While VPS welcomes the Government’s action to speed up eviction, it is warning vacant property owners and managers that new legislation may not reduce the damage and clean-up costs that squatters can often leave behind, as the majority of damage is caused in the first 48 hours of occupation.

According to VPS, the basic minimum clean-up bill for a small commercial property, such as a pub, or a three storey house, after being squatted can be upwards of £1,500 for a lock change and rubbish clearance. This figure would increase dramatically for larger properties or where greater damage is perpetrated and does not take into account legal fees, which on average start at around £5,000. With an estimated 100,000 incidents of squatting in the UK, the clean-up bill for property owners and managers could cost £650 million, before taking into account the cost of any repair work.

Property owners and managers who can take the following steps to ensure their property is well protected:

· Taking immediate action when a building becomes vacant is the most effective way to protect a property and mitigate the risks associated with squatting. You are required by law to inform your insurer immediately when a property becomes vacant. They may have specific requirements to ensure your building is properly covered.

· Undertake a comprehensive risk assessment using a specialist company to assess potential risks, such as fire hazards and public liability exposure as well as the exposure to damage from squatters/ criminals.

· Isolate and shut down the power and gas supplies and drain down your water systems properly to avoid flooding. Clear the property making sure to remove any combustible material. Install a letter box seal to prevent arsonists or squatters setting fire to the property. A build up of mail is also a vital clue that a property is empty.

· Ensure the fencing around the property is secure, consider an intelligent perimeter system and where required fit steel fittings to windows and doors. Instigate a minimum weekly inspection of the property both internally and externally – as required by most insurance providers.

· Secure the property with an intruder and fire alarm (which includes passive infrared smoke detectors and water detectors). Not only will the alarm act as a deterrent, but if squatters do gain access, the alarm activation will register any break-in. This can act as evidence when applying for an Interim Possession Order – a fast track eviction process.

When it comes to vacant properties, taking preventative action could really save money in the long run.