Tenenat wants to run a Small Business from IP

From: Pierre .


Hi all.

I'm sure this has been covered before, but I'll give it another go. One of my property managers contacted me today seeking guidance on a request from a tenant to run a small business from the property they rent from us. Business is going to be as an approved home-based child care. I need to consider:

- effect on my insurance,
- ensure tenant is insured and registered,
- relevant Residential Tenancy Act legislation (for QLD
- additional wear and tear on the property

What else do I need to consider? The primary use of the property is still residential, so commercial lease should not be a consideration.

Ideas anyone?

Pierre
 
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Reply: 1
From: Fiona H


Yes, the insurance issue is definitely an issue! What about public liability - as property owner, you will be dragged into it if there is an accident on-site. Will YOUR insurer cover you for legals etc?

Also, in my experience or childcare(I have young children) there are usually changes that have to be made to the premises to comply with DOCS (Dept. of Community Services), such as additional gates on stairs, soft fall areas, and other safety items in the kitchen/bathroom etc. How are these going to be addressed?

What about potential damage to your property? textas, paint, playdough etc on the walls, floor (hopefully not ceiling).

Much as we need (in my opinion) more homebased care for our littlies, the risk seems very large for you.

Cheers
Fiona
 
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