Tenants running business from IP
- Thread starter Plumber
- Start date
I don't agree that you are "stressing over nothing" 
; potentially having your building insurance void is absolutely worth chasing up.
Clause 21(1) of the Queensland tenancy agreement precludes operating a business from the premises without the landlord's permission:
"The tenant may use the premises only as a place of residence or mainly as a place of residence or for another use allowed under a special term."
Perhaps you could either approach them, or write to them, and explain that operating a business on your property may negate your insurance, and if they were operating a business without your permission, they may become liable for any loss as a result of their breach, eg if your house burns down due to their business equipment (computers), they may be liable to pay for re-building your house.
You could also perhaps say that you're entirely happy for them to operate their business from your home, and will include a clause in the lease stating same, if they provide evidence that they have insurance for their business activities and any potential consequences for your premises.
; potentially having your building insurance void is absolutely worth chasing up.Clause 21(1) of the Queensland tenancy agreement precludes operating a business from the premises without the landlord's permission:
"The tenant may use the premises only as a place of residence or mainly as a place of residence or for another use allowed under a special term."
Perhaps you could either approach them, or write to them, and explain that operating a business on your property may negate your insurance, and if they were operating a business without your permission, they may become liable for any loss as a result of their breach, eg if your house burns down due to their business equipment (computers), they may be liable to pay for re-building your house.
You could also perhaps say that you're entirely happy for them to operate their business from your home, and will include a clause in the lease stating same, if they provide evidence that they have insurance for their business activities and any potential consequences for your premises.
I don't agree that you are "stressing over nothing"
Clause 21(1) of the Queensland tenancy agreement precludes operating a business from the premises without the landlord's permission:
"The tenant may use the premises only as a place of residence or mainly as a place of residence or for another use allowed under a special term."
Perhaps you could either approach them, or write to them, and explain that operating a business on your property may negate your insurance, and if they were operating a business without your permission, they may become liable for any loss as a result of their breach, eg if your house burns down due to their business equipment (computers), they may be liable to pay for re-building your house.
You could also perhaps say that you're entirely happy for them to operate their business from your home, and will include a clause in the lease stating same, if they provide evidence that they have insurance for their business activities and any potential consequences for your premises.
Perp,
How many times have you tried to tell me that a tenant cannot be held liable for any damage they do?
Which is it?
it's probably a web based biz.
ask for specifics.
lets face it, a resi lease is cheaper than a comm lease, with less to worry about.
ask for specifics.
lets face it, a resi lease is cheaper than a comm lease, with less to worry about.
Um, no confusion on my part.
There's a world of difference between an insurable event occuring in residential premises, and damage resulting directly from commercial activity which constitutes a breach of the lease.
And I've never said that a tenant cannot be held liable for "any damage".
http://www.somersoft.com/forums/showpost.php?p=724902&postcount=15
Sorry, Perp
I was reading this post previously and thought that is what you meant
Sorry, Perp
I was reading this post previously and thought that is what you meant
No, that was about whether a residential tenant can get insurance for damage to the building in which they reside, which - I maintain - they can't.http://www.somersoft.com/forums/showpost.php?p=724902&postcount=15
Sorry, Perp
I was reading this post previously and thought that is what you meant
Businesses, however, can get all sorts of insurances to cover their business activities, and losses which may arise from conducting that business.
And that answers the question of why they would want to rent your place, and be happy to spend 10k on it. If it was being rented as a commercial property they would have to do that anyway, and the rent would be a lot more. As Wylie pointed out this scenario isn't all that uncommon, but like everyone has said, I would be a little concerned about insurance issues.
They are probably making themselves unavailable to the PM because they are afraid you might want to change their lease to a commercial one.
Sounds like an awful lot of hassle to me, I doubt I've met a PM who would have a barr of that..... Have met a few that would bissfully say "there's nothgin to worry about" , which in this case I don't think there appears to be..
So what if they are working from home ?
Being able to keep the place insured is all I'd be worreied about too.
But curiosity now got the better of me - what's with having a security guard at 5.30 am ? what sort of business are they running ?!?!
Kathryn, You ahve put 2 & 2 together and come up with 5.
Perp is saying the people who run the business, are running a business. A Business can pay for insurance to cover it's buisenss activities and legal reuirements like public liability at teh premeise it is working from, even if it the premises is residential. Even if the business is owned by people who signed a residential lease on that same property.
Are you suggesitng that they cannot, or that it is a bad idea ?
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If you talk to your insurer, most probably you will find out that if the property is used for commercial purposesthen, your insurances (building and land lord) are void. Thus, if the unexpected happens you won't be covered. Of course you can take the tenants to court but, you know what it means...
Yes, but if the tenant is operating a business, it may void your insurance, whether you know about it or not.
If the landlord hasn't made a provision in the lease for the tenant who has clients to the house to have insurance to cover public liability and if a client has an accident, the landlord cannot get cover for that themselves, as far as I know. We certainly were not given that option.
We had to insist on the tenant organising their own public liability insurance. If the tenant didn't get it, we would have issued the with a notice to leave.
There is a big risk if the landlord has no idea the tenant is running a business from the premises that involves clients visiting the property, and I don't know how that risk can be lessened.
Tenants security measures means 65% discount on LL insurance!
Just a quick post, have to give a quote soon....
I have been on the phone to my insurer QBE (for 2 hrs).
Briefly yes business activities must be noted on lease and documentation of liability insurance given to my insurer with details of business.
The big surprise however was that if I can document the tenants security measures our insurer is of the opinion that we would be entitled to either a substantial discount for property insurance or a beefed up public liability policy for the same money.
The interesting news is that the new meter box with wave form monitoring is being trialled by insurers and will may become a mandatory requirement for LL insurance.
Got to run - will post tonight!
Cheers Dave
Just a quick post, have to give a quote soon....
I have been on the phone to my insurer QBE (for 2 hrs).
Briefly yes business activities must be noted on lease and documentation of liability insurance given to my insurer with details of business.
The big surprise however was that if I can document the tenants security measures our insurer is of the opinion that we would be entitled to either a substantial discount for property insurance or a beefed up public liability policy for the same money.
The interesting news is that the new meter box with wave form monitoring is being trialled by insurers and will may become a mandatory requirement for LL insurance.
Got to run - will post tonight!
Cheers Dave
Security guard = concern.
New power meter could be as simple as them putting air-con in (or several computers I suppose). We have a house where we installed air-con and didn't upgrade the power board. If it starts tripping we will be faced with an upgrade of the power board. That would not worry me so much, especially if it is an older house.
New power meter could be as simple as them putting air-con in (or several computers I suppose). We have a house where we installed air-con and didn't upgrade the power board. If it starts tripping we will be faced with an upgrade of the power board. That would not worry me so much, especially if it is an older house.
I was agreeing with Ozperp.
Hi Plumber
You definitely need to get ur PM or urself to inspect the property pronto.
See if the property is filled with reasonable items.
t
You definitely need to get ur PM or urself to inspect the property pronto.
See if the property is filled with reasonable items.
t
