The new law in place in Colorado legalizing marijuana may have you, as a landlord, confused about renting your property to a marijuana dispensary owner. There are no laws in place prohibiting you from not renting to them, so you might want to consider a few things in making your decision. As a real estate investor it might or might not be a bad idea.
Colorado has had legal medical marijuana dispensaries for a few years. Now retail dispensaries are legal. Opening a retail dispensary has a lot of rules and regulations, actually, 57 pages worth! Understanding some of them may make it easier to decide if a dispensary owner would be a good risk as a tenant.
First, an owner must have a Retail Marijuana Establishment License. This licensing procedure means extensive background checks and rules. Not just anyone can get a license. So the person applying to rent your property will have to pass some stringent requirements, probably many of the same that you would require of a tenant.
Second, they must have a separate storefront for their dispensary and growing facility. There is absolutely no selling out of a home where marijuana is concerned. So your concerns of people coming and going from your property to buy pot should be put to rest. Also, their pot must be strictly tracked and disposed of. Tracking records must be very detailed and any thrown away must be completely destroyed.
As a landlord, you can restrict people from smoking cigarettes in your property. Marijuana is no different. So any dispensary owner bringing home some for their own personal use can be prohibited from smoking it in your property.
Financially, dispensary owners may be a good risk. News reports say that they are making money hand over fist. Other issues about banks and cash only businesses are being worked out, so the risk of break-ins is lessened.
In the end it comes down to this: If you personally have issues with pot, you can’t be prohibited from not renting to dispensary owners. You can also rent to them and put rules in place for your property. In the end, it’s up to you.