With many states already having statues on their books that legalized marijuana for medical or recreational use, it already has affected a number of various real estate transactions, including not only residential and commercial sales, but also residential and commercial leasing.
Property Managers and landlords might caught in the middle.
When marijuana is legalized for these above mentioned purposes, it has immediate implications for not only federal assisted rental housing, condominium associations, apartment complexes, but also for property managers who have various single or multifamily properties they manage. In many cases, the property manager may need to modify their lease agreements with an addendum or update, to modify the association rules and clarify the policies on marijuana cultivation, distribution, and use.
Property managers and landlords might be caught in the middle when a state legalizes the use and possible growing of pot. Federal law still prohibits the use, sales, and growth of pot and the federal government has every right to seize the landlord’s property.
What possible affect have a marijuana growth on a property?
A marijuana growing operation, legal or otherwise, may cause potential health issues for either the tenant, their neighbors, or contractors the property manager hires for repairs on the property. Also, there are possible legal implications to the property manager and or property owner.
When growing marijuana, the property could be damaged by possible mold due to not only the high humidity the plants need to grow, but also possible smoke and odor.
In many states, the property owners and their property managers are now required to disclose if federal illegal substances has been grown in a property.
We don’t have look far to find more information about different laws that affect the specific space you are planning on renting, planning on buying or selling. Best thing is to stay informed and when you have any question contact your attorney for further advice. For more information you can check out the the Institute of Real Estate Management. The Institute of Real Estate Management recently (February 2015) updated a report called Medical Marijuana in Property Management (PDF) with some great information to get you started.