What Landlords Need to Know About Colorado’s Marijuana Laws

Written on October 6, 2016 by , updated on December 2, 2016

Colorado pot lawsRecreational marijuana use has been legal in Colorado since 2012, and the resultant influx of “420” tourists has been a boon to the state’s economy.

As of 2016, Oregon, Washington, Alaska, and the District of Columbia have also changed marijuana laws and have legalized recreational pot.

In many ways, Colorado is a test case for landlord/tenant relations in a marijuana-friendly environment. The marijuana laws encourage Coloradans to partake at home rather than in public. But the same laws authorize landlords to prohibit marijuana-related activities on their premises.

Colorado’s Marijuana Laws

Colorado voters passed Amendment 64 to the state constitution on November 6, 2012. Enacted as Article 18, section 16 of the state constitution, the Colorado marijuana law states in part:

  • Growing: Colorado residents can legally grow up to six marijuana plants. Only three of these can be mature at a given time.
  • Possession: Residents are allowed to possess up to an ounce of marijuana, and they can give it to anyone over the age of 21, provided no money is exchanged. They can sell the marijuana they grow to a retail store, provided they have a license.
  • Public Consumption: Marijuana may not be consumed publicly or in a way that endangers others.
  • Rentals: Property owners may allow their properties to be used for marijuana consumption, storage, cultivation, and sale. They are also specifically authorized by the law to prohibit or regulate these activities on their properties, if they wish.

The provisions of section 16 do not change the fact that possession, consumption, and cultivation of marijuana remains a federal crime. The U.S. Department of Justice has indicated that it will not intervene in states that have enacted laws permitting and regulating marijuana use.

Competing Interests

Anyone who moves to Colorado to take advantage of the new laws wants to be able to smoke weed at home. Catering to their wishes makes your property more desirable and easier to rent, and if you’re a landlord, that may be all you want to know.

However, you should also consider the importance of keeping repairs to a minimum and maintaining your units in top shape so they can command the highest rent. Balancing these interests takes a more nuanced approach than outright prohibition or naive laxity.

Smoking

Limiting the amount of smoke inside a rental unit makes sense. Smoke creates odors and leaves deposits on the walls that are difficult to remove. Some tenants, however, want to smoke marijuana at home — the law makes it illegal to do so in public. Instead of a blanket prohibition, a landlord might allow smoking on the porch or in the yard.

Growing

A number of factors make home cultivation unattractive to landlords. Indoor growing can create mold and other health issues, and when tenants move out, the landlord usually gets stuck with the cleanup. Growers have been known to punch holes in walls for ventilation and to paint windows black. Moreover, indoor growing is an energy-intensive activity, and inflated electricity bills are a concern to any landlord who pays utilities. To top it off, the feds can seize any real property used as an unlicensed commercial grow house.

These drawbacks understandably make many landlords reluctant to allow growing. But they create opportunities for others who are willing to raise rents in exchange for growing permissions. Entrepreneurial landlords can help protect their premises by requiring cultivation to be conducted in a specific part of the dwelling and no other. If the unit has a well-insulated basement or garage, that would probably be the best place to allow growing. An unfinished attic can also easily be converted into a grow space.

Spell Things Out in the Lease

Whatever you choose to do, the conditions regulating marijuana-related activities must be spelled out in the lease. Here are some sample clauses for landlords in states that permit recreational marijuana, as suggested by the National Association of Realtors:

If conditions aren’t specified in the lease, it’s difficult to impose restrictions after the fact.

Calling the police is not the option it used to be since the changes in the marijuana laws took effect.

It’s good to remember that, when it comes to pot cultivation and consumption in Colorado and other states, the lines are blurred, and the police probably won’t respond.

A landlord’s best protection against property damage and possible legal problems is a clearly worded lease.

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4 CommentsLeave a Comment

  • tylor

    how would it work is say, you owned a large amount of land 35 acres (agricultural zoned land) and wanted to rent out part of it (say 5 acres) to a licensed grow company (wholesale only) but also wanted to live on another part of the land (use/live on whats left) also this is assuming the grow area is fenced off and clearly marked to not cross.
    how can this situation function? can it be done and how?

  • Ken

    If I rent out my property to growers. Specifically greenhouse growers. They money I receive for rent isn’t associated with the grow? I know you can’t put profits from marijuana operations in banks.

  • Biosweep Sacramento

    A byproduct of the new laws are an increase in marijuana odor damage to rental units. Sometimes the odor levels can be quickly remediated by simply airing out a space, however, some odors are so pervasive they require professional assistance. Biosweep offers the best solutions for pet odors and can permanently eliminate most odors in 24 hours or less so you can get your property back on the market. With over 500 successful treatments we have truly seen it all. We have permanently eradicated the extensive pet odors from homes and apartments with many years of extensive marijuana smoking. If you are in need of odor removal services in the Sacramento, California metro area visit odorremovalsacramento.com, for other areas check out biosweep.com

  • Norman

    Nice how all you snowflakes want to limit the power of the government and do away with Federal law enforcement agencies but you run and hide behind Federal laws. Whst a bunch of snowflake hypocrites.

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