Can you let your renter to do a home daycare?

9 Replies

Can you let your renters to do a home daycare? I have two great renters and they have been there for a year and half. They asked if they could start a home day care for 5-7 kids when one of them will graduate from the special education degree this May? What is the best response for that? or recommendations?

@Linda Higgins my gut advice would be to say no. That’s a lot of extra liability to be potentially taking on with all those kids (that aren’t theirs) running around your property

The only way I would do this would be 1. They sign a waiver saying I have no legal liability for this. 2. Upping their rent an amount to cover the added risk.

I’m not a lawyer so I’m not even sure if number 1 is possible or legal. If it’s not I’d just say no.

Not an attorney, no legal advise given

I really appreciate your suggestions. The liability is something I worry the most. Thanks!

@Linda Higgins , I absolutely wouldn't do this. Most leases do not allow tenants to run a business out of the home and for good reason. A day care would be exponentially worse than a lot of other businesses in my opinion. Check your lease and if that clause is in there then you can use it as an excuse if you need to.

Yes, excellent idea! I think I do have that clause in my contract. Thanks!

Never allow a tennat to operate any business out of your property. In addition to licencing and liability/insurance issues the additional damage will be a major problem. It is a residential rental not commercial and should remain that way.

Your best response is simply ........ Sorry but No Way.

Tell them how much notice you require and let them move out.

@Linda Higgins ,

No.   Way too much liability!    Suggest if they want to do that, they start saving for their own home! 

NO! NO! NO!  A kid falls, hits her head and becomes a quadraplegic. Do you have the spare cash to provide 24/7 care for her for 75 years?

I guarantee your insurance company will point out that they're not on the hook. Even if they were they'd just "throw in" the policy.

well I am going to take the contrarian viewpoint on this @Thomas S.   I see this no different than all the folks that want to do air BNB  I have had twice now were I sold new construction and they ran day care out of brand new 400k homes.. rents were double or more than normal.. you just add cap ex... and proper insurance.. 

In our market no license required.. I think if it works monetarily I kind of like it better than taking the risk on a normal tenant issues.. also commerical lease in our area like this.. there is no eviction process they don't pay you lock the door in 72 hours..

Thank you for all great inputs. It definitely helps me with the decisions!

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