We are currently accepting applications for one of our rental properties and today we got a question that we have never considered before.
The potential tenant asked if we had a problem with her having a small daycare in the home.
Our first instinct was to say no, we can’t allow that. But, we wanted to get the opinion of the more experienced landlorders.
Thanks
You are required to allow it in CA. Otherwise, I would say no. However, you could let them and they will back down when they realize all that is required to get a license and you aren’t paying for any of it.
I guess we are mostly concerned about our liability being the property owner.
You aren’t responsible for the tenant’s misdeeds. You could be held liable if someone is injured due to improper maintenance or upkeep. Unfortunately, you are the deep pocket and you are the one who will get sued.
I know a couple that rents and runs a small daycare from their house. It doesn’t seem to be as bad a choice for tennants as you’d thinnk. They need to keep the place tidy and neat because when (most) people drop their kids off they don’t want to see holes in the walls and nasty smelling/stained carpets. And also, many of the activities they do are outside and only really take naps, eat, watch movies, and color inside…that’s just my two cents
if you do allow it. make sure you have a larger than need insurance policy, if you dont ask for umbrella coverage.
your main concern/ negative to allowing it the liability issue.
im sure you rather have a cay ran in your rental than a drug house.
I know that some (most) inurance policies forbid tenants from running businesses out of the property. Found out the hard way when I got cancelled because a “retired” lawyer I rent to ran a part time office out of the property where he had clients coming to the property. I didn’t have a problem with it, even had a clause in the lease requiring him to have liability insurance for clients getting hurt on the property with me named as additionally insured. Didn’t matter, the insurance canceled anyway and I had to get other insurance for $250/year more.
jmd_forest
We have a clause in our lease which states that ‘the property is to be used only as a residence’ and ‘no business activity of any kind’ can be run from the house.
IMO, this doesn’t preclude a tenant from giving piano lessons or babysitting a couple of kids after school, but does keep them from setting up a full-fledged business such as a licensed daycare center which would increase our liability.
Theoretically of course :crossfingers
Hey Connie,
Thanks so much for your input, but pardon my ignorance what does IMO mean?
IMO means 'in my opinion :smile
IMHO means ‘in my humble opinion’ however I wasn’t feeling particularly humble yesterday :cool