As of October 17, 2018, recreational use of marijuana is now legal in Canada. If you are a landlord, or a homeowner, what does this mean for you? Can a landlord ban a tenant from smoking marijuana?  How does the new cannabis legalization impact Canadians’ real estate buying decisions?

What Landlords & Tenants Need to Know

In Ontario, the government has not changed rental laws to address cannabis but a renter’s right to smoke cannabis in their unit or building will depend on their building’s rules and a tenant’s lease agreement.

• Canadians are now are entitled to grow up to four plants per residence (not per person).
• It is legal to smoke and vape cannabis in private residences if the lease permits smoking. However, landlords may want 
• Landlords can spell out a ban on smoking marijuana (much as they do for tobacco) when the lease ends. (Current tenancy laws in Ontario prevent changes to a lease prior to its end.)

What Home Buyers & Sellers Need to Know

A recent poll of 1,300 Canadian homeowners and tenants by Zoocasa reveals attitudes regarding the impact of cannabis use on property values:

Homeowners:

Smoking Cannabis inside a home will decrease its property value

• 64% agree 
• 21% disagree
• 15% are unsure

Renters:

Smoking Cannabis inside a home will decrease its property value

• 46% agree
• 33% disagree
• 20% are unsure

Here are some more statistics on Canadian home owners and buyers on cannabis according to Zoocasa:

• 57% of home owners felt that growing a legal mount of cannabis would negatively impact property values
• Percentages of home buyers who say they’d be less interested in buying a home if they knew cannabis was grown legally on the property:
  • 52% of buyers overall
  • 38% of Millennials
  • 58% of GenXers
  • 59% of Baby Boomers

To read the full Zoocasa report, click here. https://www.zoocasa.com/blog/cannabis-report-2018/

For more information about the Cannabis Act, click here. http://www.justice.gc.ca/eng/cj-jp/cannabis/