Managing Cigarette Smoke Issues in Rental Properties: Solutions and Strategies

Rental property owners, do you have any of these problems? A tenant complained that cigarette smoke was coming in from the room next door, that his laundry smelled bad because of a resident smoking on his balcony, or that the smoke from the resident downstairs was passing to the floor above and posing a health hazard.

In recent years, problems between tenants regarding cigarette smoke have become one of the most troublesome issues in rental management. With the rise in health awareness and the increase in time spent at home due to the Corona disaster, sensitivity to "tobacco smoke from neighboring residences" has increased more than ever before. On the other hand, how to strike a balance between smokers' rights and nonsmokers' health considerations is a particularly vexing issue for self-management owners.

This article explains the actual situation of tenant problems caused by cigarette smoke from neighboring homes, the difficulties faced by self-management owners, and the specific benefits of outsourcing to a management company. We will propose measures to realize stable rental management while maintaining good relations among tenants.

Examples of Cigarette Smoke Problems Faced by Self-Management Owners

Case 1: Conflict among tenants caused by smoking on balcony

Case study of Mr. Suzuki (company employee in his 50s), who self-manages an apartment building (8 units in total) in Tokyo.

In an apartment owned by Mr. Suzuki, a single male resident living on the second floor had a habit of smoking on the balcony every night. One day, a family living on the third floor directly above him asked him to stop smoking on the balcony. Their child has asthma and coughs in the middle of the night.

Mr. Suzuki contacted the resident on the second floor, explained the situation, and asked for consideration. However, the resident on the second floor replied, "You are free to smoke on your balcony. There is nothing in the contract that says smoking is prohibited. Thereafter, the relationship between the two parties deteriorated, and Mr. Suzuki himself was unable to decide which side he should take.

In the end, the family on the third floor moved out after one year, citing "health issues," and the resident on the second floor refused to renew the contract, citing "the owner's lack of respect for privacy," leaving the two rooms vacant in a short period of time. Mr. Suzuki recalls, "Both sides had their own arguments, and I keenly felt the difficulty of arbitration.

Case 2: Crisis of legal dispute over passive smoking damage

Case study of Mr. Tanaka (60s, self-employed), owner of a used condominium (20 units) in Kanagawa Prefecture

In Mr. Tanaka's property, a dispute over cigarette smoke arose between the tenants of the adjacent rooms 302 and 303. The problem was that smoke from the smoker's Room 302 flowed into Room 303 through the wall and air conditioner ducts, and the occupant of Room 303 claimed that it was causing her to feel ill and demanded improvements.

Mr. Tanaka sought understanding from the smokers, but was rebuffed, saying, "There is no contract clause prohibiting smoking in the room. After several months passed with no improvement in the situation, the resident of Room 303 began to say that he was considering filing a claim for damages for health problems.

Mr. Tanaka hurriedly consulted a lawyer, who informed him that "there is a case in which a lawsuit was filed and compensation was approved due to the health damage caused by the inflow of cigarette smoke in an apartment," and that he could be held liable as the owner. In the end, Mr. Tanaka was able to resolve the problem temporarily by installing a high-performance air purifier in Room 302 at his own expense and installing window airtightness upgrades in Room 303, but this was an unexpected expense.

Case 3: Trouble with transition from a smoking to a non-smoking property

Case study of Mr. Yamamoto (55s, company executive), owner of an apartment (12 rooms) in Osaka Prefecture

Mr. Yamamoto owned a 20-year-old apartment building and decided to change the policy to "no smoking throughout the building" after renovations. He decided to include a special clause prohibiting smoking in the building and on the balcony for existing tenants when they renewed their contracts.

However, an elderly resident who has lived in the building for more than 10 years protested, "It is unacceptable to suddenly ban smoking in a place where smoking has been permitted for many years. In addition, some tenants agreed to the special agreement but actually continued to smoke indoors in secret, leading to complaints from new non-smokers that they could smell cigarettes even though the property was supposed to be non-smoking.

Mr. Yamamoto had to spend a lot of time negotiating with each tenant individually and explaining the non-smoking policy, and realized "how difficult it is to change the policy under self-management. In the end, he decided to hire a consultant with expertise to study how to deal with the situation.

Risks and Limitations of Self-Management

When dealing with problems related to tobacco smoke, self-management owners face the following risks and limitations

Difficulty in making legal decisions and liability

Issues surrounding tobacco smoke are a conflict between the "right to smoke" and the "right to live a healthy life. This is a difficult area to judge legally.

In fact, in a court case concerning smoking on apartment balconies, the Nagoya District Court ruled that "smoking without consideration for residents is illegal," and ordered the smoker to pay compensation. On the other hand, there is also the view that "due to the special nature of living in a condominium, one has an obligation to accept to some extent the inflow of cigarette smoke from the neighborhood.

For a self-managing owner, it is extremely difficult to properly make such a legal judgment. If you make the wrong decision, you may even run the risk of litigation.

Maintaining Your Position as an Impartial Arbitrator

In tobacco disputes between tenants, owners are expected to arbitrate in an impartial manner. However, self-managed owners are often faced with the following dilemma:

In self-management, where relationships have already been established, maintaining this position can be particularly difficult. If you have a good relationship with one resident, you run the risk of unintentionally taking their side of the decision.

Difficulty in Proposing and Implementing Effective Solutions

The issue of tobacco smoke is a complex problem that cannot be solved by simply telling people to stop smoking. Effective solutions require expertise in

• Understanding the physical characteristics of tobacco smoke and its diffusion pathways
• Ability to identify smoke inflow pathways according to building structure
• Knowledge of technical measures such as ventilation and air tightness
• Legal approaches to contractual aspects such as non-smoking covenants

It is difficult for self-managing owners to have all of this expertise, and in many cases they are unable to propose effective solutions.

Difficulty in maintaining long-term relationships and establishing policies

Temporary solutions to tobacco problems are not enough; long-term policies (policies) must be established. For self-managed owners, the following are some of the challenges

• Ensuring consistency between existing and new contracts
• Clarifying the scope of the "no smoking" policy (i.e., indoors only, including balconies, entire premises, etc.)
• Consistency of response policy in the event of violations
• Fair method of informing all tenants

Individuals tend to lack consistency in their responses, which can easily lead to a sense of unfairness, such as "that room is OK and this room is not," and cause new problems.

Specific Advantages of Outsourcing to a Management Company

The following are specific advantages of outsourcing to a management company to effectively resolve problems related to tobacco smoke.

Arbitration effect by neutral position as a third party

The biggest advantage of a management company is that it can arbitrate between tenants from a neutral third-party standpoint. Compared to the owner's own handling of the case, the advantages are as follows:

• Objective judgment based on the terms of the agreement and contract, rather than emotional arguments
• Avoids direct confrontation between owner and tenant
• Securing trust from tenants by guaranteeing impartiality
• Appropriate progression of the dialogue based on professional expertise in arbitration

In fact, the direct confrontation between tenants is mitigated by the management company acting as an intermediary, enabling calm discussions to take place. The effect is that tenants are also less likely to become emotionally involved because the response is in the form of a "contract-based response" rather than a "directive from the owner."

Contract management and response based on legal knowledge

Management companies are well versed in legal knowledge and case law regarding passive smoking, and can take action to minimize risk:

• Appropriate non-smoking covenants and incorporation into the contract
• Issue legally enforceable notices and warnings as appropriate.
• Knowledge of the latest legal precedents related to tobacco disputes
• Cooperation with specialists (e.g., attorneys) as needed.

Of particular importance is the appropriate wording and implementation of the non-smoking covenant. For example, clearly worded covenants such as "smoking is prohibited indoors" or "smoking is prohibited in all areas of the premises including balconies" will prevent problems later on.

Proposing Physical Measures Based on Expertise

Not only contractual but also physical measures are important to address the issue of cigarette smoke. Management companies can propose and implement the following specialized measures

• Identification of smoke inflow routes and countermeasures according to the building structure
• Selection and installation of appropriate ventilation equipment and air cleaners
• Installation and management of smoking areas in common areas (if necessary)
• Selection of appropriate contractors for odor and smoke control work and consultation on costs

One of our major strengths is our ability to propose specific measures according to building characteristics, for example, improving airtightness of sashes, measures to prevent backflow of ventilation fans, and measures to prevent smoke inflow from air conditioner ducts.

Avoiding Trouble through a Preventive Approach

An important role of a management company is to take a preventive approach to tobacco problems:

• Clear explanation of smoking rules before moving in
• Issuing periodic reminders to tenants
• Installing appropriate displays and information in common areas
• Providing information on smoking etiquette

Particularly effective is clearly explaining the rules and obtaining consent at the time of occupancy. By explaining as a third party that "these rules apply in this building," the management company can convince tenants to sign a contract.

Establishing and Operating Consistent Policies

A major advantage of a management company is its ability to establish and operate consistent policies throughout the property:

• Clearly documented rules regarding smoking
• Fair and equal application to all tenants
• Continuous operation that is not affected by the passage of time or change of tenants
• Effective policy design based on best practices from other properties

While self-management tends to be influenced by human relations and the situation at the time, a management company can respond based on consistent rules that state "this is how we will respond in such cases. This ensures a sense of fairness among tenants and prevents problems before they occur.

Key Points in Selecting a Management Company

The following are points to consider when selecting a management company that is strong in dealing with tobacco smoke problems.

Track record and experience in dealing with tenant problems

The most important factor to consider when choosing a management company is its track record in dealing with problems among tenants, including those caused by tobacco smoke:

• Availability and details of specific cases solved.
• Availability of manuals specialized for dealing with tobacco problems
• Experience and communication skills of the staff in charge
• Degree of employee training on handling problems

During the interview, it is a good idea to ask specific questions such as "How did you solve problems related to tobacco smoke in the past?" and "How long did it take to solve the problem and what specific measures did you take to solve it?

Contract Management and Legal Knowledge

Expertise in contract administration related to smoking is important:

• Ability to draft contracts that enhance the legal effectiveness of non-smoking covenants
• Knowledge of the latest legal precedents related to passive smoking
• Procedures for responding to violations and how to avoid legal risks
• Cooperation with legal experts as needed

A management company with experience in "changing a non-smoking policy (e.g., transitioning from a "smoking permitted" to a "non-smoking" policy)" is particularly valuable. Know-how in handling problems during the transition period makes it possible to change the policy without a major change of tenants.

Communication skills and promptness of response

Complaints about tobacco smoke tend to be emotional and require a quick and appropriate response:

• Quickness and appropriateness of initial response to complaints
• A willingness to listen fairly to both sides of the story
• Speed in proposing solutions
• Ongoing follow-up system

In actual cases, the 24-48 hours of initial response is particularly critical. Be specific about what kind of response can be provided during this time.

Preventive Approach and Ongoing Monitoring

Choose a management company that focuses not only on responding to problems after they occur, but also on preventive measures:

• Conducting periodic occupancy surveys
• Availability of resident briefings and educational activities
• Regular review of smoking policy and suggestions for improvement
• Ongoing monitoring and early intervention system

It is important to select a management company that has an attitude of "preventing problems before they occur" rather than "after they occur.

Conclusion: Professional Tobacco Trouble Handling

Problems related to cigarette smoke from neighboring residences have the potential to become serious problems in rental management. Self-management tends to face difficulties in determining emotional conflicts, legal risks, and fair arbitration. Outsourcing to a management company offers the following tangible benefits

• Arbitration by a neutral third party: Avoid emotional conflicts and resolve issues from an impartial standpoint.
• Expertise-based response: Avoid legal risks and ensure proper contract management
• Physical and technical solutions: Propose and implement specific measures according to the characteristics of the building
• Establish consistent policies: Fair application to all tenants and continuous operation

Tobacco smoke problems are not just a matter of "likes and dislikes" but an important issue related to health and quality of life. It is precisely this sensitive issue that can be addressed by utilizing the expertise of a professional management company to both maintain tenant satisfaction and stable rental management.

By relieving owners of the burden of self-management and placing the responsibility in the hands of professionals, you can create an environment in which you can focus on your primary owner duties: maintaining and improving asset value.

Frequently Asked Questions

Q1: What should I do first when I receive a complaint from a tenant about cigarette smoke?

A: First, it is important to listen calmly to both sides of the argument. The following points are particularly important

• Where exactly are they smoking (indoors, balcony, common areas, etc.)?
• By what route is the smoke entering the building?
• What time of day is smoking particularly problematic?
• Are there any health effects (pre-existing conditions such as asthma)?

If a management company is outsourced, staff with specialized knowledge can properly conduct such hearings and sort out the facts while avoiding emotional confrontation.

Q2: Can I restrict smoking even if the contract does not state that smoking is prohibited?

A: If the contract does not clearly state that smoking is prohibited, it may be difficult, but it is possible to take the following points into consideration

• A reminder based on the general clause "not to disturb other tenants.
• If the balcony is a common area, it may be possible to restrict smoking in the management agreement.
• Proposal to add a non-smoking clause at the next contract renewal

A management company can propose the best approach for the situation while minimizing legal risks. Another advantage is that we can provide a convincing explanation to both smokers and nonsmokers.

Q3: What is the best way to transition from a smoking to a non-smoking property?

A: A gradual transition is preferable, as an abrupt change risks a backlash from tenants:

1. First, make common areas (hallways, elevators, etc.) smoke-free.
2. Make outside spaces, including balconies, smoke-free.
3. Introduce a non-smoking clause in the room at the time of contract renewal
4. Include a no-smoking clause in new contracts from the beginning

Management companies have experience in transitioning many properties and can propose optimal transition plans tailored to tenant composition and building characteristics. They also know how to carefully explain the process to tenants, such as by holding explanatory meetings.

Q4: Are there any legal risks for the owner in the event of health claims due to tobacco smoke?

A: There are certain legal risks. In particular, the following cases require attention:

• When a tenant claims a health hazard, but no action is taken.
• When a non-smoking policy is advertised, but in fact other tenants are smoking
• When a structural defect in the building has left a situation where smoke can easily flow into the building

Management companies have expertise in legal risk management and can minimize the risk of litigation by taking appropriate action. Another advantage is that measures can be prepared in advance to deal with any eventuality.

Q5: How do you balance complaints from both smokers and nonsmokers?

A: Balancing the rights of both parties , the following responses are effective

• Explanations that take into account both the "freedom to smoke" and the "right to live a healthy life.
• Propose physical measures (e.g., strengthening ventilation facilities, installing air purifiers, etc.)
• Establishing smoking rules according to time of day (e.g., refraining from smoking early in the morning and late at night)
• Securing designated smoking areas as needed

Management companies have experience in resolving similar issues at many properties and have the know-how to find a compromise that is acceptable to both parties. Proposals from a third-party management company tend to be more acceptable than direct negotiations between the parties.

INA&Associates has the experience and expertise to provide effective solutions to tenant problems related to tobacco smoke. We coordinate between tenants from a neutral standpoint and provide consistent support from the formulation to the implementation of smoking policies.

Owners who are troubled by tobacco problems or who want to prepare for future risks are welcome to take advantage of our free consultation services. We will help you free yourself from the burden of self-management and realize stable rental management.