Cannabis Legalization in Ontario
How Does This Affect Landlords

Landlords in Ontario need to start thinking about how they will be impacted by the legalization of marijuana.  On October 17th, 2018, marijuana will become legal in Ontario for adults 19+ years of age. It will also be legal to grow up to 4 marijuana plants in your home. This is pretty straight forward for a home owner of a single-family residence but it is not as clear how landlords will deal with tenants use of marijuana in a condo, or apartment complex.  Tenants will have to be careful not to disturb neighbours down the hall with strong smells. Landlords are also concerned about the potential that growing marijuana plants could damage the property, specifically paint, carpets and drapery.  Most condominium boards are creating rules to deal with the legalization of cannabis and many are choosing to go completely smoke-free for all new tenants (tobacco and marijuana). Landlords of smaller residential rental complexes will need to stay current on updating their leases and understanding the laws and their rights.

What Ontario Landlords Should Consider:

There are many clauses that Landlords can include in a lease agreement and the new Ontario standard Tenancy Agreement has a section that is specific to smoking rules and you can ask the tenant to agree in writing to not smoke in the unit. If you are renting your condo, get a copy of the condominium rules and bylaws and include in the lease that the tenant must abide by such rules.  Many condo buildings are smoke-free now, this makes it a little bit easier.  Another factor to consider is the increased expense of hydro if your tenant does grow pot within their unit and how that may impact your hydro bill.  Consider who pays for the hydro? If it’s all inclusive, you may have to adjust your rental amount.  At some point insurance companies will start to have policies that address the smoking and growing of cannabis. Like all new things, there will be more to come once the law is passed. For help leasing your unit, a REALTOR can assist with specific critical clauses to protect you and your investment as much as legally possible.

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