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Recreational Marijuana, How Will It Effect Your Rental Business

By
Services for Real Estate Pros with Rentec Direct Property Management Software Tenant Screening

There are 23 states and the District of Columbia that currently have laws legalizing marijuana in one form or another and four states have legalized marijuana for recreational use, my home state of Oregon is one of them beginning July 1, 2015.Landlords and Property Managersin Oregon will be needing toconsider how they choose to handle rules and regulations & selling guidelines on their properties as it relates to legal and illegal activity. Landlords have been wondering if it can be prohibited in their rental properties and the answer is yes absolutely just like smoking cigarettes. Marijuana smoke causes just as much damage in the way of odors trapped into the carpets and walls as well as staining of the walls. There are definitely some things to consider:

1. Until July 1, 2015 recreational use, growing, and possession is still illegal.

2. After July it is legal only for people over the age of 21.

3. Partaking in marijuana must be done inside a private residence and it is still not legal to use it in a public location. This means that if your tenants are following the law they will be smoking inside the rental which could be a breach of the lease.

4. Limits will be set on how much marijuana is legal to possess. If you do an inspection and there is a lot of marijuana you could be having illegal activity going on in your rental property.

5. The Oregon Liquor Control Commission has until Jan. 1, 2016 to draft & implement the new rules in regards to processing, selling, and production of marijuana. For now, the law states that an adult can give another adult up to one ounce. There’s always a lot to consider being a landlord or property manager and now there are even more.

I often have issues with tenants smoking cigarettes and marijuana (illegally) in my rental properties and the problem is going to increase with the passing of this new law. The issues with a potential increase in criminal behavior is particularly a concern multi-unit housing where shared space is present. Have any of you faced this issue? How have you dealt with it?

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Dulcey is a member of Rentec Direct who provides Property Management Software, tenant ach payment processing, tenant credit check, and criminal reports for property managers and landlords. The information in this post is just that, informational and should not be used as a substitute for legal advice. 

Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I'm wondering if the tennant gets some form of Medical disability ruling , will it trump a No Smoking Policy ?

Jun 06, 2015 05:57 AM
Dulcey Schuster
Rentec Direct Property Management Software Tenant Screening - Grants Pass, OR
Property Management Software

Michael J. Perry I've been wondering the same thing. If someone is using medical marijuana they may say that they are not physically able to smoke outside. In addition, it's illegal to smoke in public places so if it is a multi-family unit it could pose an issue as well.

Jun 11, 2015 09:24 AM
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Another tenant issue that I am glad we dont have to deal with in Wisconsin yet.

 

Jun 25, 2015 12:28 PM
Anna Hatridge
R Gilliam Real Estate LLC - Farmington, MO
Missouri Realtor with R Gilliam Real Estate LLC

Interesting turn of events.  I had not thought about the issue with regard to rental properties. Thank you for helping me address the issue.

Jun 26, 2015 09:52 PM
Anna Hatridge
R Gilliam Real Estate LLC - Farmington, MO
Missouri Realtor with R Gilliam Real Estate LLC

Thank you for following my blog.  Nice to meet you.

Jun 26, 2015 09:52 PM