Surveyor · northglenn, CO · Member since 2009 · 29 posts · 1 vote
I have a office condo that I'm not using a lot of, since the downturn. I listed to rent a room of it on Craigslist, and got a Web guy who wants to work after hours and weekends trying to start his web based business. My problem is my business insurance may not cover my equipment and records if theft occurs; because I gave someone else a key. The agent suggested having HIS business insurance name me as an additional insured- and when I quit snickering, admitted that I didn't know for sure that he doesn't have insurance. But I would be real surprised if he did.
Any suggestions? He lives in a condo, and just wants a place to work away from family that isn't Starbucks; a reasonable idea, I think. I just want to make sure I'm still covered. I'll have him sign a lease, of course, and pay in advance, but I don't know what other options I could try. Thanks!
Real Estate Investor · OH · Member since 2008 · 194 posts · 89 votes
16y
Roger,
For a more legalese answer, you will need to consult with your attorney and insurance agent. One recommendation though when your insurance agent says you are insured or what you need to do to become insured, get it in writing from him or her. That way you are covered if their are problems down the road (be prepared). Limited access to only parts of the building is also excellent advice if doable for you based on the layout of your building.
Also, make sure your lease allows you to sublet your space, assuming you don't own the building yourself. May or may not be a problem. Commercial space is not my specialty so this may not even be an issue but I would want to cover all the bases.
Surveyor · northglenn, CO · Member since 2009 · 29 posts · 1 vote
16y
Thanks- I do own it, but HOA rules do exist. This shouldn't trigger it, and I will figure out the doors to lock my stuff away. I'll see if i can get a positive from my agent on those changes, but he is a wiley one..........
Real Estate Investor · Sacramento, CA · Member since 2008 · 566 posts · 356 votes
16y
Require your sub-letting tenant to get his own insurance policy and add you as a co-insured. As co-insured, you should be notified if the insurance was cancelled or lapsed.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
16y
Hi, you won't have insurance coverage because you become a landlord! Is renting out part of the condo office space worth it? What about your taxes changing part of the use to an investment/rental, what happens there?
What I have done is just made a deal on a handshake and a nod, just say, OK, you can use that room from time to time, but I don't want you to have other persons here when I'm not here. You can pay the utility bill. Letting a friend use part of your office is not a lease or a rental arrangement, it has no effect on your insurance coverage nor does it have any tax issue (except for the loss of your utility expense). I'd suggest you make it less formal and you'd be helping the guy out. Maybe he could do some computer stuff for you too, since you're such good friends! Bill