Tips for Toronto Landlords: What You Should Know about Cannabis Legalisation

by Zumin Real Estate Centre

The legalization of cannabis in Ontario, Canada is a cause of concern for many households—all the more for landlords. This new law will impact homeowners for many reasons. As such, it has serious implications for you as a landlord in Ontario.

So let’s review the new cannabis laws in Ontario. Effective 17th of October last year, it’s now legal for adults aged 19 years and above to possess up to 30 grams of marijuana. It’s also legal to grow up to four pot plants in a residence, whether it’s an apartment in a triplex, a condominium, or a single-family house.

Apparently, condominium boards have started to implement rules concerning the legalization of cannabis. Some homeowners are planning to rely on existing ‘nuisance’ rules to deal with any issues. Some even opt to have a completely smoke-free environment, regardless of whether the smoke is from marijuana or tobacco.

If you are a landlord in Ontario, you have to familiarize yourself with the new law and how it may impact you and your tenants. Here’s what Ontario landlords need to know with regards to the recent legalization of cannabis:

 

No-smoking, no-growing rules

It’s worth noting that Section 10 of Ontario’s standard Residential Tenancy Agreement allows you to specify smoking rules. So it’s your prerogative if you want to include a no-smoking rule in the lease. If your tenants agree not to smoke and put it in writing but end up doing so anyway, you have reason to evict them. Also, you can include a ‘no grow’ rule in the lease. This will prohibit your tenants from growing marijuana in the unit. That said, you can decide if you really want to incorporate the no-smoking and no-growing rules in the lease.

 

Condos

Now, if you are renting out a condo, then you have to provide your tenants with a copy of the condo’s rules and bylaws. Prior to securing new tenants, it’s important that you advise them of the existing condo rules so they won’t be caught off guard. Once they move into a smoke-free condo building, they will have no other choice but to abide by the rules. Otherwise, they will be evicted if they are caught breaking them.

 

Home Insurance

Most home insurance carriers are still in the process of figuring out how to deal with the new laws legalizing cannabis. They have yet to put together policies that cover pot plants being grown inside apartments, condos, or single-family homes. They may need to know how smoking marijuana impacts certain establishments. But more than anything else, it’s important to make sure your policy covers you if your tenant smokes or grows pot plants.

 

Hydro Usage

The hydro usage should also be deemed with the utmost consideration. This is because growing pot plants in the unit may affect the hydro bill. According to CBC, it takes about 2,000 kWh to make a pound of cannabis using traditional growing methods. This is close to the same amount of electricity used by an average Canadian household in two months. The good thing is, you can opt for homegrown kits and hydroponic options out there. This will help you minimize smells and maximize energy. 

 

Pot Smells

Finally, the smell of pot is something you should consider, among other things. Pot smoke tends to permeate everything, same with cigarette smoke. If your tenant is smoking weed in your house or condo, chances are you will have to shoulder bigger cleaning bills in between tenants. Apart from this, you may have to look at repainting and replacing your carpets and drapes. The responsibility to repair and pay for any undue damage to a rental is stipulated under Section 13 of the Ontario Residential Tenancy Agreement. So at the end of the day, it is your responsibility to do so.

If you’re looking to buy real estate in Toronto, get in touch with us today – we’re happy to help you find a property that suits you.