Marijuana lands tenants in Tenancy Tribunal

Friday, 12 April 2019

Investors have options for investing in medical marijuana companies.

Marijuana might be becoming more socially acceptable, but it can still cause problems for tenants of rental properties.

Under the Residential Tenancies Act, tenants must not use a property or allow it to be used for an 'unlawful purpose'.

Breaching that obligation - including by using marijuana - could result in them having to pay exemplary damages of up to $1000.

In a case heard by the Tenancy Tribunal this month, an Upper Hutt tenant was reprimanded for her guests smoking weed on the premises.

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Leilani Kurei rents an apartment on Main St and had placed furniture in a common area, in breach of the body corporate rules.

As the law stands at the moment, tenants could be asked to pay $1000 in damages if they smoke marijuana in a rental property.

Her visitors had smoked marijuana at the property and a fire escape had been used 'in an incorrect manner'.

The tribunal ordered her to pay $200 in exemplary damages for the marijuana use and to remove the table, tarpaulin and three metal chairs before Friday.

In March, Adrianne and Malcolm Smith were ordered to pay $1739 after their tenancy ended - in part because they had been smoking marijuana and cigarettes in the property, the tribunal was told.

In another case, heard in January, Tobin Banks and Nicholas Gray were taken to the tribunal over a Hillcrest, Hamilton property.

Quality Rental Management said they had used the premises illegally by smoking illegal substances. They, too, were asked to pay $200 in damages as well as rent arrears.

Sometimes more than smoking got tenants into trouble.

Tarnia Boudette had to pay $15,942 after the end of the tenancy of a Papamoa property, when the landlord said, among other things, there were dead fish and dying marijuana plants left in the roof cavity.

Natalie Martin had her tenancy cancelled by the tribunal over marijuana plants growing in the laundry and a dog being kept at the property.

'I think it more likely that Ms Martin knew that the plants were marijuana, and not tomato plants. Turning 'a blind eye' to the reality is also a form 'permitting' a person to conduct an unlawful activity on the property,' the adjudicator said.

Also last month, the tribunal heard Van Nhat Nguyen was referred to the police over a Dannemora, Auckland, property when the landlord found what appeared to be an attempt to accommodate an 'industrial marijuana growing operation'.

Property investor Graeme Fowler said tenants should expect marijuana to be treated differently to tobacco smoking.

'In general property managers and landlords would take a different approach to weed than cigarettes. Weed is illegal and so what would normally happen is the property manager would inform the owner, and in many cases inform the police and possibly end the tenancy. Depending on the severity of the situation would depend on what action the landlord or property manager would take.'

Another investor, Nick Gentle, said he imposed a blanket rule of no smoking of any kind. 'Beyond that, I leave it up to the property manager.'