Renting to Stoners -- How to Handle Legalized Pot in your Rental Property

What do you do when Cheech and Chong move into your rental property? Good Question! And one that's of far more relevance for landlords as strict anti-drug polices give way to recreational and medicinal marijuana use laws. Twenty-nine states and the District of Columbia now allow some use of marijuana and more are likely to follow. Of course these folks need a place to live too so how should you address pot in the house?

First, know your rights as a property owner. Simply because something is legal doesn't necessary make it permissible. If you already have an no smoking clause in your lease be sure to point out to tenants that includes marijuana. If you allow smoking outside you might provide for the same rules for pot; you can smoke it, but not in the house. What about edibles or concentrated forms of THC? You'll want to check local marijuana laws of course, but if stated in the lease no typically means no. Remember, marijuana is still technically illegal under federal law so a well placed clause in the lease citing federal statutes might be a wise idea if you live in a state/municipality with laws too lax for your liking.

Ahhh, what about Johnny Greenthumbs and his summer herb garden? That too should be stipulated if you want to maintain control of what is and isn't sprouting up on your property. Keep in mind that drugs, even if they're legal, carry a social stigma and from a pragmatic point of view having six-foot tall Purple Cush growing in your garden might very well invite an unwanted element to your house and the neighborhood. Your lease should address both indoor and outdoor growing of pot and double check with your insurance company too. They'll likely tell you that damages stemming from illicit activities aren't covered in your homeowners policy.

Here are a few warning signs to watch for if you're concerned your house has become an arboretum:

Spike in utility costs
More foot traffic in and out of the house and at odd hours of the day
Darkened windows
Cheetos and Doritos bags everywhere (however, if accompanied by Mountain Dew Code Red, you likely have an infestation of gammers on your hands and not drug users)

If you suspect your house or yard is used being used to grow weed contact your local police or drug enforcement taskforce. If confirmed, EVICT!

On a final note, keeping an open mind may very well play to your advantage and help you retain and perhaps charge a premium even for good tenants. Like a pet-friendly property, pot-friendly narrows you down as a potential match for our cannabis-loving tenant. That could be a noticeable competitive advantage so have your multi-year lease agreement handy, but remember to set limits and expectations. After-all, this is your investment Bob Marley.

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