Home » Property letting

Would you allow a tenant to run a business from your property?

21 November 2008 Be the First to Comment

There is often a certain amount of tension between a landlord and a tenant,whether it be due to a landlord’s poor maintenance of a property or a tenant paying their rent late.These are usually issues that can be resolved with both parties feeling happy with the outcome,but what if your tenant makes their living by using your residential property as a business premises.This is a situation with no easy resolution and as a landlord or property owner you need to protect yourself from it happening in the first place.

The first thing you need to do is check your lease agreement and ensure that there is a clause stating that the premises be used for “private residential purposes only” and “no other purpose whatsoever.” You could also then include something saying the tenant needs written consent from the owner to perform any kind of business from the rental property.These simple inclusions in your lease agreement could save you ,as a landlord, many headaches in the future.

The main reason a landlord should be concerned about this kind of activity on their property is that they could be liable in labour law issues if an accident should occur on the rental property being used as a business.Other concerns are complaints from neighbours, and these could be never ending.There is a possibility of noise complaints,complaints of where customers of the business park their cars, the kind of people utilising the business and of course security concerns about theft and the amount of people coming to the area.

If you currently have a tenant running a business from your property and you are not happy with the situation check what the lease agreement says.If the lease has the clauses stating the property may only be used for residential purposes or specifically prohibits the running of a business from the premises you are entitled to cancel the lease agreement following legal requirements.In terms of the breach of contract clause you could either notify your tenant of your wish to cancel the lease agreement or give them written notice stating they have to immediately cease any business activities or face the cancellation of the lease agreement.Alot of what the landlord may do in these situations will be determined by the lease agreement, so read it carefully.

Depending on your specific property and your relationship with the tenant you can make your own decision regarding this subject.However most property owners are of the opinion that a tenant running a business from your property is far to much of a hassle and you should protect yourself from it.As in all things ensure you follow the legal route and get advice from qualified people.

Leave your response!

Add your comment below, or trackback from your own site. You can also subscribe to these comments via RSS.

Be nice. Keep it clean. Stay on topic. No spam.

You can use these tags:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

This is a Gravatar-enabled weblog. To get your own globally-recognized-avatar, please register at Gravatar.

Afrigator I shmaak SA Blogs, sorted with Amatomu.com
Accepted in the ezSearch South African business directory.
Check PageRankReal Estate Business Directory - BTS Local Blog Banner Clicks