Landlords and Cannabis what you need to know.
On December 5, 2017 the Calgary Residential Rental Association had an informative meeting to discuss the Legalization of Cannabis in Canada on July 1 2017. They explained how this might affect Alberta Landlords.
My top Take a ways from this meeting were.
- During the Event both the pros and cons were presented. The pro side states a number of health benefits from the product.The reality is Cannabis is here to stay, so each landlord needs to come up with their own policies for their own buildings.
- Currently this legislation has been passed in the House of Commons, but has not been passed through the Senate. Provincial and Municipal legislation is still pending; this will not be completed until best case April 2018, so the rules are not set in stone and may change: City to City and Province to Province.
- As a landlord, you will have to decide if you are comfortable with tenants in your building being able to Grow, Smoke, Possess, Eat, Store, Distribute Cannabis in and around your property. The same way you must decide if you will currently allow pets and smoking. This decision will affect the other tenants in the building (their right to quiet use and enjoyment of their home). Landlords and Cannabis – this is a big decision.
- Safety factors, such as mold, leaking hydroponics systems, chemicals for weed & bug control and security & crime must also be considered.
- Legalization for Edible Cannabis products (Cannabis products that you eat) is not expected until mid 2019
- It is predicted that in some countries the user rate is as high as 25%: this could be a good source of additional income for landlords willing to put up with any additional problems that might be encountered.
- You could advertise as a Cannabis friendly building and charge a premium.
- You could provide special areas for Growing the legal number of plants.
- During the Interview process discuss openly the following with your potential Tenants
- Do you, or will you use Cannabis products once it becomes legal in Canada.
- If yes would you Smoke, Eat, Vape, or other?
- Is this for medicinal or for recreational use? (if medicinal, my I see your prescription documents?)
- Would you Plan to Grow any plants in our property?
- If so, how many (4 maximum legally)? Where would you do this in the building? Would you use dirt or hydroponics systems?
- Would you be willing to pay more for additional utility usage?
- Based on their replies, determine if they will be a good fit for your building?
- Do you plan on selling any cannabis products form your home?
- How would you feel if other tenants are using Cannabis products in the Building?
Understand their feeling on the product and make sure they align with yours, and the Expectation of other existing tenants. Landlords and Cannabis is an important item to consider.
Click Below to get the complete Report with a Sample addendum to add to your Leases.
Cannabis Download Complete Report.