Tenants and Weed and Liability

So I recently discovered that my tenants are part of a marijuana collective and are growing plants in one of the rooms in the property (single family house). They attempted to hide it, however, it was discovered after inspecting the property.

They have provided documentation to show that they are acting within CA state law and have valid patient recommendations from licensed medical doctors.

So while this may pass the sniff test by CA state, it is still federally illegal. The lease specifically states that no illegal substances can be present on said property.

My question is, what is the potential liability?

I understand it “may” be legal in the state, but, the feds can bust them at any time, so I’m not really sure what would happen with the property. I am sitting with them next week and will lay down my terms, which will include them removing everything (if I decide to let them stay).

What are everyone’s thoughts?

Unless you want to be the federal test case and subject your property to seizure for knowingly and deliberately conspiring to commit a felony, of which this remains, I would suggest you have your farmers move, or cease and desist forthwith, and just call the cops, for good measure, in the meantime.

I’ve done this. It won’t be “just” pot they be having in the house. Trust me on this. Drug dealers aren’t that scrupulous.

Not sure if the “cooperative” is a business or not, but my leases state the property is residential only and tenant can NOT run a business from the property.

Local police will probably ignore it, but I would suggest you evict them for two reasons. One, if they get busted, you could tell the feds you were trying to evict them so you weren’t knowingly allowing it and conspiring. Two, grow ops can create mold issues which can affect your ability to finance the property, sell it and insure it, and it can also be a costly remediation. Residential is not zoned for farming so it’s an illegal use of the property. Get a copy of their documentation as evidence of the grow up and talk to a local lawyer and have them review the lease to find a way to properly get them out of there ASAP. I think you’ll regret it if you let them stay there.

Is all this really a question? I mean really?

Of course you don’t let tenants do business out of your house; much less turn it into a pot farm.

Pots going to be legal in every state before to long, even the feds have eased up, even the one guy, I forget his name now, but he runs the war on drugs basically, hes said that he is no longer going after people where the states have made it legal, or something like that. Im not a fan of the federal government AT ALL, and it needs to be A LOT smaller. If the state says it legal, then its legal in the state, screw the federal government, man this shit gets me all worked up… Both marijuana and hemp should be legal, I could rant about the benefits of that to no end, not here of course :slight_smile: If you are going to shut them down and possibly lose out on the way they even pay the rent then thats up to you, if you want to go about this from the “no business from the home” side, then Im even ok with that, but, you may end up just kicking them out after they cant pay you, then finding other tenants. If theyre paying and not causing any trouble or costing you money whats the harm if theyre following state law. Dont be that guy on the feds ****. Fight the power and all that stuff lol, just sayin…


Maybe he could just raise the rents 30% and call it a day …and leave the tenants alone?