You set goals and became a real estate investor. Life is good. You have 1 property maybe several.
Enter Canada’s Cannabis legislation.
You get phone call your tenant has set up unit to grow up to 4 plants for recreational use. Doesn’t hurt you it’s legal…right?
If you have a new tenant since legalization and properly included clauses under additional terms in the new Ontario Standardized lease document you can directly address that notwithstanding Cannabis legalization that the tenant is not permitted to grow any plants on the rental premises is one thing. What if they were in prior to and your lease has no clauses to address?
If you want to go sell imagine buyer reaction upon finding said unit on their tour. All prospective buyers are not cool as a cucumber about it.
When a Bank appraiser makes appointment to do mortgage pre-financing walk through if that appraiser so much as sees 1 plant, legal or not, they can deny prospective buyer financing and deal is dead.
Added to this headache is issue surrounding insurance. Stay tuned for updates as more professionals weigh in on the real impact of Cannabis and your investment property. As we move forward new circumstances are arising that are creating fresh challenges. At Keller Williams we are committed to our clients in providing information, resources as a top notch training and technology company. How can we help you today? Questions? Call direct: 289-221-5999