What Property Managers Need to Know about Cannabis Real Estate California

What Property Managers Need To Know About Cannabis Real Estate C

What are the effects of the legalization of Cannabis among real estate and rental property businesses?

This is a question that will surely intrigue property managers in running their rental property business. 

Are you curious about how this law could affect you and your rental property? 

Can you just allow the use of cannabis inside your property? Are you allowed to prohibit its use among your tenants?

If you are wondering about these questions, I will provide you information that property managers need to know about cannabis real estate California.

Common Questions About Cannabis Real Estate California

After Proposition 64 was approved in California, recreational use of cannabis was allowed for every person in the state who is 21 years old and older. 

This is very good news for all cannabis smokers in the state.

The legalization of cannabis in California also affects rental property managers now because some renters may possibly smoke hemp anytime inside a rental property. 

Even if the state legalized the use of cannabis, property managers should still be cautious of the actions of their tenants.

As a property manager, you have to know the basics of using cannabis in your rental property. 

Here are some questions that are frequently asked by property managers regarding cannabis real estate California.

Does California Permit Its People to Use Cannabis in Rental Properties?

California is one of the states that now allow the recreational use of cannabis at home among adults over 21 years old. 

Other states are Washington, Colorado, Oregon, Alaska, and the District of Columbia.

It is also legal in several states for patients to use cannabis for medical purposes. Some of the states that have legalized the use of cannabis for medical purposes are the following:

  • Arizona.
  • California.
  • Connecticut.
  • Delaware.
  • Hawaii.
  • Illinois.
  • Maine.
  • Maryland.
  • Massachusetts.
  • Michigan.
  • Minnesota.
  • Montana.
  • Nevada.
  • New Hampshire.
  • New Jersey.
  • New Mexico.
  • New York.
  • Pennsylvania.
  • Rhode Island.
  • Vermont.
  • Washington.

Even if many states are now allowing the use of cannabis at home, it will also be better as a property manager to get to know the specific laws of California regarding the use of cannabis at home. 

By being familiar with those laws, you can exercise caution while you are running a rental property business. It tells you how to manage cannabis real estate California situations.

Can a Property Manager Ban the Growth of Cannabis in a Rental Property?

Even if California permits hemp smokers to grow their own cannabis for medical or recreational use at home, property managers still have an option to ban their tenants from growing pot. 

So yes, the answer to this cannabis real estate California question is an affirmative.

Property managers can do this by putting this rule in the lease agreement as a clause. It’s just natural for property managers to exercise caution in taking care of their rental properties. 

If you believe that allowing tenants in growing cannabis on your rental property will cause danger, then you can provide a ban on doing it as a clause in your leasing agreement.

What if a property manager fails to include a clause that bans the use and growing of cannabis on the rental property? 

If this happens, the property managers could still depend on any anti-drug or crime policy that was provided in the leasing agreement to deal with cannabis real estate California issues.

If a tenant commits a breach of this clause, the property manager must write and send a notice of the cannabis real estate California lease breach to the tenant. 

In writing the notice, the property manager should mention the clause that was violated by the tenant. After the tenant receives the notice of lease breach, you can expect that the tenant will refrain from growing pot. 

If this doesn’t happen, then this is the time where the property manager could try evicting the tenant. He can cite the cannabis real estate California issue as the cause.

However, if there is no clause that pertains to the ban of growing cannabis or a clause about any anti-drug or crime policy that is present in the leasing agreement, the property manager will have a hard time stopping the tenants from growing cannabis until the end of the term of the lease.

So, if you are a property manager who doesn’t favor any activities pertaining to cannabis, then you should include a cannabis real estate California clause that bans this in your leasing agreement. 

This is so you won’t have a hard time evicting tenants who might commit this violation.

Can a Property Manager Include Cannabis Rules in the Leasing Agreement?

It is a responsibility of every property manager like you to take care of your tenants and your rental property as well. 

Allowing tenants to engage in marijuana-related activities may cause damage to your rental property. 

Some cannabis real estate California situations may also bring danger or nuisance to other tenants who are also renting your property.

For the safety of your rental property business and tenants, the decision is yours if you will prohibit the use of cannabis or allow cannabis real estate California situations to develop

Before you include a clause pertaining to cannabis, you should be knowledgeable about cannabis laws in California.

If you believe that your rental property will be safer if you ban the use of cannabis, you should make sure that it is clearly stated in the rental lease agreement.

What If Tenants Complain That They Should Be Allowed to Use Cannabis Since It’s Legal in California?

Since it’s now legal to smoke cannabis in California, it’s possible that there will be tenants who will complain and ask this question. 

If you face this question, the answer will depend on your cannabis real estate California situation. 

If your rental lease agreement signed by the tenants includes a cannabis real estate California clause that bans it on the rental property, then you can freely prohibit them from any activities that deal with cannabis.

On the other hand, if your rental lease agreement has no cannabis real estate California clause regarding the ban of cannabis on the rental property, you will have to take some actions before you could stop your tenants smoking pot within the grounds of your rental property. 

You will have to consult an attorney who has broad knowledge with your state and municipality landlord-tenant laws. Ask about an alternative solution for your dilemma.

Can a Property Manager Evict Tenants for Causing Trouble to Neighbors for Smoking Cannabis?

Since it is legal in California to smoke cannabis even for recreational purposes, property managers will have a hard time evicting tenants for committing a single cannabis real estate California violation. 

The best action to take is to confront the tenant about the cannabis real estate California matter to resolve the situation.

However, if after confronting the tenant, there are still numerous complaints about the troubles that the tenant caused for smoking hemp, there is a possibility that a property manager can evict that tenant.

Final Thoughts about What Property Managers Need to Know about Cannabis Real Estate California

After the legalization of smoking cannabis in California, property managers now face questions that deal with cannabis real estate California

It is just natural that property managers will choose to keep the rental property from any possible danger that could be caused by hemp smokers. 

If you don’t favor the use of cannabis in your rental property, the best way to avoid it is by including a cannabis real estate California clause that bans the complete use of cannabis in your rental agreement.

I hope that this article has provided you enough information what you need to know about cannabis real estate California.


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