Working / "Running a business" from home

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    Working / "Running a business" from home

    My husband works 3-4 days per week from our rented home (which we have on an assured shorthold tenancy, 2 year lease). He does research and preparatory work (ie computer / paperwork) at home. The landlords are aware of this and have raised no concerns. He has a registered office elsewhere. He also has an office elsewhere in which he normally meets clients. Things are changing though, and we'd like to know if any likely problems:


    a) His business has expanded - he wants to take on a part-time employee, also working from our home. Is this OK? If so, what about if it expands further to a full-timer / two part-timers?

    b) He very occasionally (up to 6 times per year) would like to have meetings with very locally-based clients at our home, rather than travel to main city to see them. Is this OK?

    c) Is there a definition anywhere of what "running a business from home" means, as opposed to simply having a home office?

    d) Should any of the above affect either our home insurance (currently contents only) or the landlord's?

    Any info including links to other sources would be very helpful...

    Thanks
    sued2

    #2
    This is a really tricky area but many landlords & tenants don't know it
    Originally posted by sued2 View Post
    My husband works 3-4 days per week from our rented home (which we have on an assured shorthold tenancy, 2 year lease). He does research and preparatory work (ie computer / paperwork) at home. The landlords are aware of this and have raised no concerns. He has a registered office elsewhere. He also has an office elsewhere in which he normally meets clients. Things are changing though, and we'd like to know if any likely problems:


    a) His business has expanded - he wants to take on a part-time employee, also working from our home. Is this OK? If so, what about if it expands further to a full-timer / two part-timers? It is clear to me that your husband's main workplace is where you live; it doesn't seem to have occurred to your landlord that by allowing him to conduct his business from residential premises he has in fact almost certainly created a tenancy at common law, similar to that which you would have for commercial premises, and not an AST even though that is what has been signed for. Don't be alarmed by this as it doesn't affect your ability to live there - it may in fact establish your right to renew your tenancy under the Landlord & Tenant Act 1954. The reaon I say all this is because it has been tested in a court of law last year if I remeber correctly, so your landlord might find it difficult to evict you if you wanted to stay there.

    b) He very occasionally (up to 6 times per year) would like to have meetings with very locally-based clients at our home, rather than travel to main city to see them. Is this OK? After what I've said above I don't think anybody could stop you.

    c) Is there a definition anywhere of what "running a business from home" means, as opposed to simply having a home office? Yes! The premises will be business premises in part.

    d) Should any of the above affect either our home insurance (currently contents only) or the landlord's? Quite probably, but some companies have a separate business from home insurance but you will have to insure your domestic belongings under a dfferent policy with the same insurer (insurers don't like potential conflicts of interest!)

    Any info including links to other sources would be very helpful...

    Thanks
    sued2
    The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

    Comment


      #3
      The planning department might have a thing or two (or six!) to say about this. Your neighbours might complain about the level of traffic; parked cars etc.

      You may become liable for business rates too.

      Equally you can probably claim a proportion of house costs against tax.
      The contents of this note are neither advice nor a definitive answer. If you plan to rely on this, you should pay somebody for proper advice.

      Comment


        #4
        This has little to do with the type of tenancy agreement created!
        The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

        Comment


          #5
          I think you'll find the major issue here, for a business which doesn't involve noise/disturbance etc, is whether it involves people coming to the property. That's from the council's viewpoint in terms of car parking etc, and from the insurer's viewpoint for obvious reasons.

          Comment


            #6
            Really appreciate everyone's help.

            There's no traffic.

            Also, there is the employee who walks in most days.

            So, if I understand correctly, if the landlord knows he works from home, then there is an implied contract. And the landlord can't even turf us out, after the 2 years are up... Is that for real? The lawyers would have a bumper pay day...

            I guess we have to find proof that the owner knows about the work.

            What about business rates? Really? It's an entirely residential area. The nearest business is hundreds of yards away. Don't lots of people have home offices?

            We'll check our Contents policy.

            Thank you once again

            Comment


              #7
              I think it is unrealistic to say a business tenancy has been created simply by a boss working from home and the LL knows about it; literally doing his "homework". In the same way an employee might work at home rather than commute. Think about school teachers marking homework at home and preparing for lessons. They are working but the home is not a place of business.

              Having employees to work at your home is a different matter. And if your LL knew and tolerated this then perhaps a business tenancy would be created.
              All posts in good faith, but do not rely on them

              * * * * * ** * * * * * * * * * * * *

              You can search the forums here:

              Comment


                #8
                So are there any implications if a tenant was a gardener or mobile machanic and his paperwork was done from home??

                Or is that a silly question

                Comment


                  #9
                  Just ask yourself - where is the person's main place of business?

                  On Bel's point "I think it is unrealistic to say a business tenancy has been created simply by a boss working from home and the LL knows about it" - sorry! but that's entirely my point.
                  The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

                  Comment


                    #10
                    Originally posted by Paul_f View Post
                    Just ask yourself - where is the person's main place of business?

                    On Bel's point "I think it is unrealistic to say a business tenancy has been created simply by a boss working from home and the LL knows about it" - sorry! but that's entirely my point.


                    I understand that was the point you were making, Paul, but at this stage of play, and applied to the current situation only, the case seems rather weak to me.

                    There must be clause against it in tenancy agreement. Also, we do not know what was said by the tenant to his LL, who is more likely to have underplayed the amount or quality of time spent working from home. He has a registered office and an office to meet clients. I'm sure that the home address will not feature on any business documentation, websites etc as a place of business.
                    All posts in good faith, but do not rely on them

                    * * * * * ** * * * * * * * * * * * *

                    You can search the forums here:

                    Comment


                      #11
                      As I say - it's already been tested in court and the tenant claimed commercial tenancy rights even though he only had an AST, and the judge agreed. I'm only the messenger here!
                      The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

                      Comment


                        #12
                        Originally posted by Paul_f View Post
                        As I say - it's already been tested in court and the tenant claimed commercial tenancy rights even though he only had an AST, and the judge agreed. I'm only the messenger here!
                        On post #2, it's hard to separate OP's questions from your answers unless one studies both texts. Better to use quote and unquote facility.

                        As to the reported Court case which you mentioned, surely the tenancy became a business tenancy only because L consented to a use otherwise prohibited in the AST. I doubt that T's unilateral actions could lead to his acquiring business tenancy protection (Part II of LTA 1954) without L's concurrence.
                        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                        4. *- Contact info: click on my name (blue-highlight link).

                        Comment


                          #13
                          You're right J. The landlord was aware and, yes, the tenant would have been in breach had the landlord not known he was intending to work from the premises.
                          The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

                          Comment

                          Latest Activity

                          Collapse

                          Working...
                          X