Most tenants are working professionals and every now and then they will work from home. Generally, this isn’t an issue; usually their work only involves the internet and a computer, and they won’t be doing it every day.

If a tenant intends to run a business from your residential investment property they need to ask you before they start operating the business, and there are a few questions you will need to ask too!

First and foremost you will need to find out what type of business it is they are intending to run.

For many white-collar sole traders, such as freelance graphic designers and communication professionals, running a business from your property often isn’t an issue; their working tools are a pc and the internet, and meetings with clients are usually held away from home. With someone at home all the time, the air conditioner may be used a bit more in the summer, and the heater a bit more in the winter, but other than that, the situation is pretty much the same as someone just living in the property.

However, with some other home-based professions, such as hairdressers, child-care, music tutoring, painting and decorating, e-bay distribution companies and renting out a room on AirBnB, running a business from your property does become an issue.

These types of business will not only potentially increase wear and tear on the property and possibly electrical goods you have their (eg washing machines and dishwashers) but it may also affect your landlords insurance.

Plus some mortgages stipulate businesses cannot be run from the property.

In addition to the above considerations, here are some more questions you will need to ask if your tenant approaches you to run a business from your property:

• Has the tenant all relevant licences and registrations as required by law, and does the business comply with all relevant legislation?
• If clients are coming onto your property, has the tenant got appropriate Public Liability Insurance for the type of business?
• Will running a business on the property be in breach of strata corporation rules?
• Will running a business on the property be in breach of local council regulations?
• Will the business affect, disturb or inconvenience your neighbours in any way?
• Is there enough parking for clients?
• Will your property need to be inspected to ensure it is fit for purpose? If so, will there be a need for additional fixtures and fittings?
• Will the business affect the property in any other way? For instance, if someone is running a painting and decorating or a cleaning company, will there be any toxic or flammable industrial substances stored on your property?

These questions are aimed to help you understand there may be ramifications if a tenant wants to run a business from your property; while we can give you information of what you need to think about and consider, if you are in any doubt or have concerns, you should seek independent professional legal advice.

With over 40 years in the business, our experienced team has managed situations where a tenant has intended to run a business and have, where necessary drawn up new leases accordingly.

If have any more queries or you’d like to find out more about our property management services, simply give us a ring on 02 4956 9777, send us an email to mail@newcastlepropertymanagement.com.au or pop into our Cardiff office for a chat.

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