The Perils of Bad Cannabis Leases
The landlord-tenant relationship is probably the most challenging relationship in the cannabis industry. We’ve seen a lot of deals go south over the years, and while partnership disputes are very common, landlord-tenant disputes are also frequent and in some cases are even more common than partnership disputes. There are a lot of factors at play that make cannabis leasing challenging for both landlords and tenants, which you can read about in my two prior posts below:
Cannabis lease disputes are tough to avoid, even with a solid lease agreement. But they are all but guaranteed with a bad lease agreement or a lease agreement that does not adequately address common cannabis pitfalls that I discuss in those above articles. Unfortunately, it’s extremely common to encounter bad cannabis form lease agreements and landlords who won’t change them.
I want to be clear when writing this that references to form agreements does not necessarily mean that any form lease is bad. There are many form commercial lease agreements that work well for cannabis leases with a few adjustments or addenda to address some of the cannabis-specific issues.