Landlords Rights/Responsibilities/Remedies

There have been a lot of questions and concerns surrounding the commercial leasing issues that the cannabis industry has presented to landlords and landowners.

Often, a cannabis tenant will be applying for multiple types of permits and licenses, with the intent of conducting several separate operations on site. One example is where one tenant owns an indoor cultivation, manufacturing, and distribution business all operated under separate licenses under the same room. This subjects both the cannabis business owner and the landlord to follow strict protocols regarding access and security.

If you are a landlord and have a cannabis commercial tenant and are unclear regarding the following issues, call The Cannabis Legal Group today to schedule a consultation!

  • Commercial Landlord’s Risks to Renting to Cannabis Tenant
  • How can you, as a landlord, protect yourself from liability when your commercial cannabis prospective tenant says she needs to sign a lease before she can get a permit to operate?
  • Your property insurance may increase, should you pass that cost onto the tenant?
  • You have a mortgage on your building, will that be affected if you take on a cannabis tenant?
  • What if you have a cannabis tenant who wants to sublease to other operators?

Since cannabis is still federally illegal, it is imperative that you have a firm understanding of the risks involved. For example, in terms of federal drug enforcement, landlords who rent to commercial cannabis companies may be subject to civil asset forfeiture actions.

Landlords must know and require tenant’s strict compliance with state laws as an affirmative obligation of the lease agreement or they will be subject to share liability with the tenants.
If you are landlord and need help with drafting proper lease agreements or are unsure of the risks, call The Cannabis Legal Group today for a consultation.