Okay so the day has come and gone in Canada; Marijuana is now legal here in this country.
So, how does this change our real estate market? Do you think having four pot plants in the home will affect your home’s value? What about smoking weed inside the home? How about having a pot shop just down the road from your property? What about your rental property?
These are all timely questions now that the sale and use of Marijuana is legal in Canada, but is it yet acceptable? Polls done recently seem to show that Millennials or those born between the early 1980’s and mid 1990’s are the least likely to be concerned about cannabis growing in the home, only about 30% were concerned about pot being present compared to Generation X’s and Baby Boomer’s where almost 60%, were concerned that the value of the property could be affected.
Interestingly, renters seemed not to be too bothered either. Less than half of those polled thought that having weed in the home would affect the value of the property. This raises another question, should you be able to smoke pot in your rental apartment? Over 88% of Landlords overwhelmingly stated that they planned or wanted smoking to be banned in rental apartments. Landlords across B.C. are relieved to hear they will have the power to prevent tenants from growing or smoking marijuana in rental units, according to new rules unveiled by the provincial government
Some are saying that allowing communal outdoor space or an area in underground parking to grow plants is a good idea. It prevents apartment dwellers from going behind people’s backs and potentially damaging property. But most Landlords and David Hutniak, CEO of Landlord B.C., which represents owners and managers of rental housing across the province, agree that
“In a perfect world we would prefer not to see any cannabis grown in our buildings.”
‘We’re providing housing, as opposed to greenhouses’
Hutniak says that landlords are worried for the health and safety of their tenants, as well as the impacts that growing marijuana could have on their buildings. “Growing marijuana uses a lot of electricity; there’s high humidity … particularly with less sophisticated growers, and it’s often dried in the oven,” Hutniak explained. “We’re providing housing, as opposed to greenhouses for growing cannabis.” Hutniak says that as marijuana becomes legal, there will be many options for tenants to be able to consume marijuana without having to grow or smoke in a rental. “The retail model here is really progressive. There’s going to be adequate availability of the products, let’s put it that way.” It’s important to note that if tenants require cannabis for medicinal purposes, there are several ways to obtain a dose in things such as patches, edibles and tinctures to avoid smoking and/or cultivating.
If you are a Landlord or are thinking of becoming one, be sure to do your due diligence when writing up a new tenancy agreement. If you do not want smoking or vaping, or growing of cannabis on your property then it is wise to include that in the tenancy agreement. This way you can avoid any confusion going forward. If you to choose to not include any mention of the use or growing of marijuana in and on your property then you could run into problems. The smoking of marijuana is now legal. Please do your homework.
As to the value of properties dropping because of the presence of weed, that remains to be seen in future sales figures. If judging by tobacco smoking is anything to go on, we have often found that strong odours, especially residual tobacco smoke, in any property, can definitely lower the price a buyer wants to pay for the home.
Thanks for reading and remember if you ever have any questions about our current Kelowna or Central Okanagan real estate market be sure to contact us at any time and we will happy to help you find your answers!
Shannon & Tamara