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Landlords Renting to Medical Marijuana Dispensaries May End Up in Legal Battles

BB&K In The News

Best Best & Krieger's Laura Crane Writes About Risks Faced by Landlords

JUNE 6, 2011
The Business Press

By Laura L. Crane

Since California voters passed the California Compassionate Use Act of 1996, also known as Prop. 215, hundreds of store-front dispensaries selling medical marijuana have opened throughout the state. In the Inland region alone, some 175 dispensaries are operating across Riverside and San Bernardino counties.

While legal battles erupting between the dispensaries and the many cities in which they are located have grabbed newspaper headlines, perhaps not as well known are the potential ramifications to landlords who rent out retail space to those dispensary owners. They can face costly penalties, a one-year loss in rental income and even jail time.

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