Publications for Landlord-Tenant

On November 6, 2018, Michigan became the tenth state to legalize cannabis for recreational use, known as Proposal 1 (“Prop 1”). Prop 1 legalized, among other things, the consumption of cannabis for individuals 21 years or older, allows individuals to grow up to 12 cannabis plants, and permits an individual to possess up to 2.5 ounces of consumable cannabis on their person with up to 10 ounces stored at a person’s residence subject to certain storage requirements.

Given these often conflicting interests, landlords must strategically plan and carefully negotiate lease terms that will allow them to mortgage leased property. This means taking the steps necessary to make a transaction appealing to a lender while reducing the risk that a tenant could hold a financing deal hostage.

Over the course of the coming months, we will be publishing a series of articles that discuss some of the common real estate, finance, and corporate issues that our clients face on a day-to-day basis.

In May 2017, the City of Detroit announced its intention to implement a city-wide effort to enforce tougher rental ordinance rules on landlords, including demanding that rental properties be registered and brought into compliance. 

Most municipalities own at least some real property and often such property is underutilized. An effective way for a municipality to monetize that asset, and raise extra revenue, is to lease the property to a tenant.