How rental owners can anticipate new marijuana laws.
As more and more states legalize marijuana, rental property owners need to understand how this affects their investments. By keeping an eye on developing trends and new legislation, you can maximize your returns while reducing the opportunity for legal action against you. Here’s how rental owners can anticipate new marijuana laws.
- Consider Potential Impact
First, it’s important to consider how the legalization of marijuana can affect you. Once marijuana is legalized, your residents may be more likely to smoke or vape. However, smoking and vaping can cause serious damage to rental properties and leave stains, residue, and unpleasant odors. If you do not want to deal with such damages, then you can ban activities like smoking and vaping on your property. Make sure that you carefully outline marijuana guidelines, as they may be challenged by residents wishing to capitalize on marijuana’s legal status. Being detailed with your marijuana policies will leave little room for residents to take legal action against you.
- Accommodate Medical Concerns and Dealing with Insurance
While you can ban marijuana use in your property, the Fair Housing Act allows residents with medical conditions to request an exclusion to this rule. Denying their request could lead to a tricky lawsuit. Another thing to consider is many insurance companies will refuse to cover properties where marijuana use is permitted. Even if they don’t refuse coverage, insurance providers may increase premiums significantly on properties that allow marijuana. This will cut into your profits. So, this is also something to consider when allowing residents to use marijuana, even if it’s for a medical condition.
This is how rental owners can anticipate new marijuana laws. Not sure what else you need to consider when it comes to marijuana and rental properties? If so, then contact the experts at California Commercial Realty Advisors, Inc. Our dedicated team is eager to assist you with all your real estate needs today.