Tenants running business from IP
- Thread starter Plumber
- Start date
You must be very lucky i wish someone cashed up with high incomes would come along and spend that sort of money in one of the run down fibro 3 bedders we control,
This is only my opinion,first of all get rid of the PM and take control of the management side,and deal with your tenants yourself,and unless the place is set-up for in the shed for a hydro cash crop ,and you have 20 people per day and night going in the door then don't worry and just think how "Lucky:" you are..
Hi everyone,
I didnt get a chance to post anything last night - sorry ! Bit of a long post follows.
The picture is much clearer today. I do feel like a snoop now but there are issues I will have to deal with as these people are not ordinary tenants or at least the type of tenants I ever expected to deal with.. I think while some of my concerns were based on exaggeratted fears, overall the situation did require some investigation. My entire family were speculating on what might be happening - which maybe put me into more anxiety/concerned state.
My PM had a 3 hour meeting with Lady tenant yesterday. My tenants are now trying to rent or buy a property just across the road from our IP. They are trying to persuade that Landlord to do a conditional commercial type lease. They will still continue to rent our place as a modified residential property.
Lady tenant filled in the PM on the situation.
Mr tenant is some sort of Guru sharetrader who has a big house and business address way across town. He runs a personal investment company, several websites and does consultancy work through several companies he owns. He has staff and employees plus tons of insurance!
His property is the registered address of his businesses and he gets certain mail forwarded to our IP (this is what I must have seen.
Lady tenant works strange long hours at a nearby hospital and owns a very modern apartment at the end of the street. She doesnt drive. They decided to rent our place as a sort of "love shack" (which is how lady tenant refers to our IP). It had space, breezes, and a neglected garden they could play in while still being close for her work.
When they signed the lease they didnt really have any intention of running a business from the IP. But within a month or so Mr Tenant got sick of commuting all the way across town and started bringing screens and computers over. He then had to tell his business insurer who insisted on certain measures equal to or better than his existing office eg alarm system and security guard when no one was in attendance. Apparently he also has to do this as a condition as some of his consultancy papers / data is highly sensitive/confidential.
Mr Tenant is of the opinion that his commercial and PL and Professional Indemnity insurance would take care of any insurance claims from his activities.
It is Lady Tenants projects that may be the problem and she recognises this. Since moving into our IP she has been developing a medical website and using Mr tenants IT guys has had a pilot up and running for a month or so. And suddenly it has taken off big time. She doesnt have a registered business or any corporate structure. Currently she is jumping through the hoops of business registrations and bank accounts etc etc. Early in the new year she is hoping to get substantial financial backing and put her website out there.
But at the moment her servers and site resources are located in the back bedroom of our IP. Her project involves most of the vistors to the property - usually other medicos and IT guys. Neither business is open to the general public as such. Both tenants agree this is not a convivial arrangement and so they are looking for a place next door to set up Lady tenants business.
As it stands our tenants are sorting all this out and while realising that something should be shown on the lease, they didnt want to stuff us around until they had arrangements sorted eg who was working where etc.
Our Pm suggested that they come into the office next week and make a note on the lease. The Pm phoned my brother late yesterday who agreed it would be OK to make a note on the lease for the time being. I'm a bit shirty at my brother for agreeing to this - but I suppose it is probably what I would have decided anyway.
I spent much of last night talking to our PM getting this story, then a long time relaying this info to brother, mum and pop, who had been a bit worked up also about what our tenants were up to. Pop was convinced they were mafioso (him being sicilian and all) but really admired their gardening. Back in his home country only mafioso had gardens so nice LOL!
Mum also suggested maybe we should offer our IP for them to buy outright as she didnt think prices were going to go up much in next 10 years.
So where does that leave things ?
The lease is ammended stating what? Lady tenant running a website from the address? Can Mr Tenant be said to be running a business from our IP?
It seems all our insurer needs is for the business name and general nature of business plus details of business registrations and business insurance certificates. If the business is not registered they need to know what sort of activity is going on to assess their risk.
QBE are sending me out policy clarifications regarding LL insurance and I learnt a lot on the phone yesterday. In the event of a disaster or damage LL insurance will examine the cause and contributory causes but it doesnt mean LL insurance is automatically negated becuase someone is running an unregistered business from the premises. As long as the insurer knows what is happening at the property and the event falls within those knowns it should be OK.
Phew! Ok thanx for the responses so far!
Cheers Dave
I didnt get a chance to post anything last night - sorry ! Bit of a long post follows.
The picture is much clearer today. I do feel like a snoop now but there are issues I will have to deal with as these people are not ordinary tenants or at least the type of tenants I ever expected to deal with.. I think while some of my concerns were based on exaggeratted fears, overall the situation did require some investigation. My entire family were speculating on what might be happening - which maybe put me into more anxiety/concerned state.
My PM had a 3 hour meeting with Lady tenant yesterday. My tenants are now trying to rent or buy a property just across the road from our IP. They are trying to persuade that Landlord to do a conditional commercial type lease. They will still continue to rent our place as a modified residential property.
Lady tenant filled in the PM on the situation.
Mr tenant is some sort of Guru sharetrader who has a big house and business address way across town. He runs a personal investment company, several websites and does consultancy work through several companies he owns. He has staff and employees plus tons of insurance!
His property is the registered address of his businesses and he gets certain mail forwarded to our IP (this is what I must have seen.
Lady tenant works strange long hours at a nearby hospital and owns a very modern apartment at the end of the street. She doesnt drive. They decided to rent our place as a sort of "love shack" (which is how lady tenant refers to our IP). It had space, breezes, and a neglected garden they could play in while still being close for her work.
When they signed the lease they didnt really have any intention of running a business from the IP. But within a month or so Mr Tenant got sick of commuting all the way across town and started bringing screens and computers over. He then had to tell his business insurer who insisted on certain measures equal to or better than his existing office eg alarm system and security guard when no one was in attendance. Apparently he also has to do this as a condition as some of his consultancy papers / data is highly sensitive/confidential.
Mr Tenant is of the opinion that his commercial and PL and Professional Indemnity insurance would take care of any insurance claims from his activities.
It is Lady Tenants projects that may be the problem and she recognises this. Since moving into our IP she has been developing a medical website and using Mr tenants IT guys has had a pilot up and running for a month or so. And suddenly it has taken off big time. She doesnt have a registered business or any corporate structure. Currently she is jumping through the hoops of business registrations and bank accounts etc etc. Early in the new year she is hoping to get substantial financial backing and put her website out there.
But at the moment her servers and site resources are located in the back bedroom of our IP. Her project involves most of the vistors to the property - usually other medicos and IT guys. Neither business is open to the general public as such. Both tenants agree this is not a convivial arrangement and so they are looking for a place next door to set up Lady tenants business.
As it stands our tenants are sorting all this out and while realising that something should be shown on the lease, they didnt want to stuff us around until they had arrangements sorted eg who was working where etc.
Our Pm suggested that they come into the office next week and make a note on the lease. The Pm phoned my brother late yesterday who agreed it would be OK to make a note on the lease for the time being. I'm a bit shirty at my brother for agreeing to this - but I suppose it is probably what I would have decided anyway.
I spent much of last night talking to our PM getting this story, then a long time relaying this info to brother, mum and pop, who had been a bit worked up also about what our tenants were up to. Pop was convinced they were mafioso (him being sicilian and all) but really admired their gardening. Back in his home country only mafioso had gardens so nice LOL!
Mum also suggested maybe we should offer our IP for them to buy outright as she didnt think prices were going to go up much in next 10 years.
So where does that leave things ?
The lease is ammended stating what? Lady tenant running a website from the address? Can Mr Tenant be said to be running a business from our IP?
It seems all our insurer needs is for the business name and general nature of business plus details of business registrations and business insurance certificates. If the business is not registered they need to know what sort of activity is going on to assess their risk.
QBE are sending me out policy clarifications regarding LL insurance and I learnt a lot on the phone yesterday. In the event of a disaster or damage LL insurance will examine the cause and contributory causes but it doesnt mean LL insurance is automatically negated becuase someone is running an unregistered business from the premises. As long as the insurer knows what is happening at the property and the event falls within those knowns it should be OK.
Phew! Ok thanx for the responses so far!
Cheers Dave
I'm keen on knowing what "wave form monitoring" is? I await your next post with anticipation.
Oops its not wave form monitoring - its a frequency controller. Needed for LED lights, high end computers and servers, plus next generation on demand appliances + if solar is installed. It regulates the current, sort of like surge buster as I understand it.
They can be programmed to detect electrical cabling overheating.
Probably they will be installed cost free by electricity authorities in a few years.
As a plumber, it has only been in the last few months that I've seen them being installed on various jobs.
They decided to rent our place as a sort of "love shack" (which is how lady tenant refers to our IP). It had space, breezes, and a neglected garden they could play in while still being close for her work.
LOL... how romantic. Making out in the "love shack" between the banks of computers
Pop was convinced they were mafioso (him being sicilian and all) but really admired their gardening. Back in his home country only mafioso had gardens so nice LOL!
That is funny too
Glad it all seems above board, even if it is a little (no.... a LOT) weird.
Two of our recent lots of tenants have been seriously wealthy. Latest lot ran a business, kept their out of town place as it was close to the business, spent their time between houses, had a commercial premises and at lease one rental place that they mentioned.
I suppose if you can afford a "love shack"..... well.... why not
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LOL you sound like Pop !
It just doesn't make sense male tenant doesn't want to commute across town, so he is willing to spend 30K approx setting up a new office..with security.
I suggest you have your insurance company contact his insurance company and straighten things out.
We have dealt with a lot B.S. tenants..and this stinks.
Female tenant's business taking off really quickly..
My husband said, yeah right, PORNO.
It just doesn't make sense male tenant doesn't want to commute across town, so he is willing to spend 30K approx setting up a new office..with security.
We have dealt with a lot B.S. tenants..and this stinks.
Female tenant's business taking off really quickly..
My husband said, yeah right, PORNO.
I can understand the commute issue. Bris traffic is dreadful ! I get the impression from this guys business references/ personal referees he gave on lease that Porno just wouldnt go down well. But you never know!
Maybe some more investigations are in order ?
Made me laugh..
I don't know any traders or medicos who need a security guard out the front of their houses at 5.30am
Hey this Mt Gravatt! Break and enters are taught in year 10 ! Grand Larceny you can get a BA in at Griffith Uni ! LOL
if all the insurance stacks up....
do they really need the place across the road? if they're happy can they just pay you more rent to operate from your place? do they want, and can you offer a long lease for their security of tenure? win-win
i doubt they will want to buy, they would have done that from outset if that's what they wanted. but worth a shot and you might get well above market.
i'd be continuing talking to them.
depends on how you value your time. at $200ph spending this sort of money to avoid an hour commute each way could be good value for money. 5 days x 2 hours = $2000 commuting time each week - i'd gladly pay that much to avoid the hassle. it MAY be genuine.
it does appear a bit smelly, but it might not be.
Female tenant's business taking off really quickly..
My husband said, yeah right, PORNO.
as long as it doesn't involve animals or kids who cares? they did say it was a love nest after all...
What are you complaining about!? Get your insurance updated, and let them live in peace. People can get stressed from anything.
ETA: Far out there are a lot of worriers on this site!
As someone said, as long as it doesn't involve animals or kids and is legal, who cares!?
I agree as long as they get the insurance sorted out, all should be good.
However, these tenants rented the premises under a residential tenancy.
The owners have a right to know if it is being used for any other other purpose.
The tenants were not forthright in setting up a business without informing the owners and asking if they need to check out their (LL) insurnace.
These tenants do not seem to be stupid people, and should have known better.
A bit funny that they did all that without telling someone first, but then again, they did tell what they did and show plumer through afterward... scratches head... get the inusrance updated, tell tehm to let yo know befoe they ... (enter your key points/concerns here)... and hopefully all's (really) good.
