Family Day Care Business

[Greg1327]

G'day Everyone,
I have a brand new investment property (4 bedroom house) which has just been placed on the rental market. I have a tenant who is interested and she has stated that she would like to run an afternoon family day care business from my property. Has anyone had any experience with situations such as these? I am concerned that there are possible legal issues or other downsides that I am unaware of.

Thanks in advance for your help.

Cheers,

Greg

 

[Belu]

i would imagine that insurance would be an issue. what is your lvr? might be a lending issue depending on the zoning?

 

[GoAnna!]

Family Day care is run from standard homes. I would ring the local coucnil involved and ask how they would be need to be set up insurance wise and what the requirements are property wise. The council has to approve this business.

 

[mallee]

Hi Greg,
I had a similar issue with one of my IPs. We found out accidentally that the tenant was running a family day care centre from the property. We were extremely concerned as the property had a swimming pool!
I phoned our insurance who gave us 30 days to rectify/evict the tenant or they would withdraw the insurance over the property. Needless to say we began proceedings to evict the tenant but the tenant actually gave notice and broke the lease, thank goodness......
Cheers
Janine

 

[Petal]

There is another post around somewhere about running a business from home and whether the landlord knows about it not.

I changed insurers on a few properties last week (to AAMI). One of the questions they asked for each property was "is a business being run from the property" and I said not to my knowledge. And how would I know and what constitutes a business?

Even the daycare example in this thread can be difficult to find out about if the tenant wants to conceal it and what about say an ebay business??

It is a bit of a minefield in my opinion. Out of the blue someone visiting your IP on business with the tenant has a fall and the tenant does not have any insurance to cover this. Who does the faller come after and if they do come after the landlord is the insurance coverage void because when the landlord took out the policy they said "not to my knowledge" or "No" when asked if a business was conducted at the rental premises.

Scary stuff

 

[Pecan]

Pluses: tenant will have income coming in, will spend a lot of time at home.
Negative: tenant willspend a lot of time at home, there will be a lot of toddlers at your house.
IN WA a tenant would need written permission from the landlord to run a family day care business, it is highly regulated, I assume this is hte same in NSW.
In WA, the insurance providers for the family day care program are based in a remote island near the british island so really their insurance is worth didly squat, I would be cautious. Your building insurance may be effected as well as your landlords insurance. Investigate!

 

[tubs]

No no no no no no...and

NO

If any kid hurts themselves in YOUR house, and you havent made it safe for them, can you imagine what kind of lawsuit could be coming your way?

What kind of glass do you need installed? Are there any nails poking out, sharp corners. What other things could kids hurt themselves on?

I'm being blunt here, but if a tenant (or potential tenant) wanted me to rent them a place where I would have responsibility for making it safe for half a dozen toddlers I'd be heading for the hills.

Oh, bet they didnt offer you any extra rent for your stress, did they...

 

[moyjos]

Great point!!

Do your DD with the family day Care assoc
Then offer the rent at "fair commercial rate"
As commercial you should be then able to demand a
currency certificate for the business's insurances.


Cheers
Sue

 

[moyjos]

Try this link for details to ring

http://www.dhcs.act.gov.au/ocyfs/family_day_care

http://www.dhcs.act.gov.au/__data/a...Web_update-_September_07-_Family_Day_Care.pdf

Sue

 

[jasper]

It's all Good

Look, I had a tenant that was a family day carer. In my area and with the group she was associated with (Cardinia Family Day Care Scheme) they were very well covered insurance wise and my insurance company was fine with this. She was a brilliant tenant who never missed a payment and kept the property in excellent condition.
Make your enquiries and go for it!

 

[craigb]

Gee! there are some cheeky people out there?

 

[craigb]

i can't see a problem, if it if above bord, kids arn't china dolls. and if the gov approve of this a deems them ok to do this it should be ok, but you should know, whats going on, perhaps she could lock them our on the balcony? just a joke y'all!

 

[Ridin-High]

yeah and also charge her extra rent because she is using your property for business

 

[tori]

family day care

hello,

i run a family day care buisness from a rental property our property is owned by my husbands company. I had to obtain permission from my landlord i also had to show them a copy of my public liability insurance which we must have as part of our reapproval process we can not work without it. It depends on the ages of the children in care but it can be a little rough on the house .


Thanks tori