Tenant now running business - extra house insurance cost for us

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    Tenant now running business - extra house insurance cost for us

    Our tenant is now running a beauty business from the house (states in the AST that it can only be used for a "home" only however we aren't too fussed on that). However it would also push up our insurance bill another £150 a year. Is it reasonable to ask for her to pay this extra cost? Don't want to pay it ourselves, plus she is a bit of a pain so it wouldn't be the end of the world if she moved out!

    #2
    Changing the use of a property is probably a planning issue.

    I'd tell the tenant that they can't run a business from a residential property and that, if they don't desist, you'll have to serve notice to avoid problems with the council.

    If you charge the tenant more, you are essentially agreeing to the change of use which could make it impossible to use that as grounds for a repossession as well as causing grief with the council.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Agree with above, if she is already a pain (for what ever reason) and now she has gone totally against the tenancy and lied to you...... she clearly can not be trusted and i would get rid.

      Comment


        #4
        Originally posted by thesmiths88 View Post
        Our tenant is now running a beauty business from the house
        What does that entail exactly? "Running a business for home" can mean many different levels of activity.

        Running a business selling beauty products on e-bay/Amazon/etc. is probably fine, as long as she is not cluttering the place up with stock which could be a fire hazard.

        Having clients visiting to have their hair/nails/tan done is probably not acceptable, would usually need planning for a change of use, and would probably mean that business rates were payable for (part of) the property.

        Comment


          #5
          We are tenants.

          My wife is a travel agent. She is repeatedly headhunted to work for a travel agency where you work from home, manage a client base etc. While there are other reasons that she doesn't take this up, one of them is that as tenants, we aren't contractually allowed to run a business from the home. Our LL and LA have been fussy on a few points so it's just not a risk we would want to take - giving up employment elsewhere to run a business from home then face challenges outside of our control.

          Basically, your tenant has shown she either doesn't know or doesn't care about the agreement she signed with you. A beauty business implies clients coming to the property - increased footfall/wear and tear/damage/parking issues etc. Its relatively easy to start a business in that industry as the barriers to entry are pretty low so it's likely that the tenant has tried their luck to kickstart something driven by the opportunity of profit to them - so I don't see why you should shoulder any additional cost/problems etc.

          It won't end well whether you let them run the business or not realistically - so cut your losses and go for the option with less hassle for you.

          Comment


            #6
            There's a significant (but grey) difference between running a business in a property and working at home.
            Working from home is usually discernable by there being a business somewhere else, with other people working elsewhere, while the person working at home regards the property primarily as "home".

            When someone runs a business from a property, they're usually the boss/self employed and most of the business activity happens in the property.

            If someone is running a hair dressing business from a property, I'd say that was running a business and not working from home.

            Working for a travel agent which operates in other places as well, strikes me as working from home.
            However, the difference may be difficult to argue against a fussy agent.
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

            Comment


              #7
              There is even a Home Business Tenancy (see: https://www.landlordzone.co.uk/infor...siness-tenancy)

              Comment

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