Question re tenants running a business from a rented home

by Readers Question

9:26 AM, 30th May 2013
About 8 years ago

Question re tenants running a business from a rented home

Make Text Bigger
Question re tenants running a business from a rented home

Tenants running a business from a rented homeAs we know, running a business from home can be merely by using a computer, so would this contravene an Assured Shorthold Tenancy Agreement and possibly planning permission too?

I have a tenant who operates with a computer at home to market his business and although he has premises elsewhere to operate his business, he is now looking to install a walk in freezer in the house garage to store his products, the question being are we still within the terms of the tenancy agreement ?

As AST’s usually make it clear that no business is to be operated from the dwelling this is grey area isn’t it?

Where is the dividing line in this modern day and age, perhaps some light can be shed on this situation?

Looking forward to reading your responses.

Regards

Rex Hawkins


Share this article

Twitter Facebook LinkedIn

Comments

Mark Alexander

9:29 AM, 30th May 2013
About 8 years ago

It's a very interesting question Rex. Lot's of people sell things on ebay these days for example. At what point does this become a business?

I too am very interested to read the opinions of others.

Brian Godfrey

9:46 AM, 30th May 2013
About 8 years ago

Good morning Rex

Will your tenant be delivering stock to, or storing it on, your property? It sounds like it.

Generally (as far as I am aware) if the above is true, if a workforce is regularly coming and going, and/or if machinery is being operated, it counts as a home business.

This isn't illegal, but it might be against the terms of your BTL mortgage or landlord insurance policy. You can find more information on the subject here:

What do I do if my tenant has set up a business in my property?

Warm regards

Ian Ringrose

22:13 PM, 31st March 2014
About 7 years ago

Is this one of the few cases when landlord would be better served by tenants being discrete about what they are dong and not asking for provision first?

Discuss…….

Michael Barnes

9:13 AM, 1st April 2014
About 7 years ago

[I am not a lawyer]
My view is
A) if it involves people and/or goods coming to the property in connection with the business, then it is not allowed.
B) if it is purely administrative involving only the residents and post/phone/internet/personal computer use, then it is acceptable.

However, it is probably worthwhile talking to the local council (in general terms, not giving the address) to determine their view, as it may involve business rates.

Sam Cowen

9:53 AM, 1st April 2014
About 7 years ago

Interesting one. How many young businesses are started in people's garages, dining rooms and bedrooms? With fewer people owning and more renting, sticking to these outmoded rules could prevent the creation and growth of many successful online businesses which create wealth and provide jobs and skills for thousands of people.

Mike W

12:05 PM, 1st April 2014
About 7 years ago

As usual in these matters it is not 'how the landlord/tenant feels' and 'considers' the matter in 'this modern day'. It is how others: the council, the insurance company, the bank/mortgage holder, the neighbours consider the position. Why? Because if something happens and the bodies above then become involved the landlord/tenant can get a serious surprise. Is the 'risk' of non declaration worth it? Then why do you bother with local government/insurance/loans??

As my lawyer always says: the reason you have contracts (to let your property, to insure your property, etc) is to find out what happens when something goes wrong.

Leo Nelson

13:56 PM, 1st April 2014
About 7 years ago

I strongly believe that as long as the property isn't modifying the property in anyway to a commercial aspect, tenants should be left to earn their income and if it means registering a LTD company to their address or selling items on internet sites then great! Isn't it all about rent being paid promptly, and the property being well kept nowadays?

Badger

18:32 PM, 6th April 2014
About 7 years ago

Reply to the comment left by "Leo Nelson" at "01/04/2014 - 13:56":

Well, yes, except that... the movement of stock in and out of the property is liable at the very least to lead to much higher wear and tear on it and especially on the entrance area.

Storage of stock will have insurance implications and quite possibly fire risk implications (see insurance again) and may even lead to putting the safety of the tenant, the building, and any other occupants of the building at risk as a result.

I too would not like to see new businesses prevented from starting up, but nobody will be saying that to the landlord as they prosecute him for violations and transgressions against his mortgage and insurance contracts.

It's a sad world that we live in...

Jan Martin

17:12 PM, 17th April 2014
About 7 years ago

My tenant has aked to start a childcare business in my property . This would be through social services and insurance would be in place . Can I have views please.

donna douglas

23:24 PM, 4th June 2014
About 6 years ago

Hi,

I need help as well, I am looking at sewing things and selling items on ebay.

I have not tried it yet but I come from a sewing background, I am unemployed and I have worked before.

My back to work support has suggested doing permitted work, which would be 16 hours a week making things to sell.

I get that it may sound fluffy,my plan is that if I could do this it would build up my skills. I am doing an alteration/ tailoring course which is going to help me get a job in a alteration shop.

I have read that I need to ask permission if I want to sell on Ebay, that I will be classed as self employed. I am worried to ask in case they say no, no customer will come to the flat or stock kept on site. I would make things over the 16 hours and put them them up for sale, I will not be having rooms of boxes.

I am am applying for work but it seems to be take ages to get something, I look at the sewing idear, I go back to applying for work. Please can someone give me advice, thank you

1 2

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Can I purchase a freehold title AFTER freehold enfranchisement has taken place?

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More