Cannabis laws give landlords a unique amount of control and bargaining power over tenants. This usually translates to above-market rent and one-sided lease agreements. Fighting with landlords is no fun, especially for cannabis tenants who cannot simply relocate to a new property and must deal with their lessor for the life of a license. In this post, I’ll examine some important concepts for cannabis tenants.
1. Getting Along with the Landlord
This isn’t really even a legal concept, but it’s a critical one. Before getting tied up into a multi-year contract that a tenant essentially can’t back out of if it wants to remain in business, it’s a good idea to know who a tenant is dealing with. Chances are, the tenant will be required to go to the landlord for approval frequently during the life of the lease. It’s a good idea to understand who the landlord is before signing. If it’s a challenge to negotiate basic lease provisions at the outset, it’ll probably be a challenge to get those new premises modifications approved–or to do anything else.
2. Landlord Control
It’s common for leases to prohibit assignment or subletting without the landlord’s consent. Many leases go a