Rental Property Address Registered As a Business

Rental Property Address Registered As a Business

Involved In Real Estate · Gaithersburg, MD · Member since 2013 · 41 posts · 7 votes

Thought I would get some thoughts on this matter. I received an application for a rental property and quickly noticed that the applicant was self employed. A quick Google search revealed that he was using his previous rental address as the address for the business, a pressure wash business. One can only assume that allowing him to move into this rental, he will register it as the new address for his business. I wanted to get some thoughts from the landlords out here on how they handle their rental addresses being registered as a business address and the liabilities/issues they have faced.

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Jerry W.Pro Member
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Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
12y

@Account Closed it depends on the business model of the tenant. If the address is just where mail and phone calls come to it is not that big of a thing. If it involves sales and pick ups and deliveries then it is entirely different. Maybe take some time and ask some questions about how the business works.

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  • Real Estate Investor · Chicago, IL · Member since 2008 · 1k+ posts · 218 votes
    12y

    I have a stipulation in the lease that clearly states you may not run a business from the property. This covers, not just this scenario, but also if they attempt to run a day care or something else that may impact my insurance coverage.

    Just tell him to get a box at a UPS Store, and use that address for his business.

  • Involved In Real Estate · Gaithersburg, MD · Member since 2013 · 41 posts · 7 votes
    12y

    @Account Closed Thanks for the quick response. The idea of the box sounds good and would shield the address from being tied to the business even after the tenant leaves. However, with this type of business, I question the amount of subcontractors that could be stopping by constantly to pick up supplies, drop of paperwork, etc.

  • Real Estate Investor · Chicago, IL · Member since 2008 · 1k+ posts · 218 votes
    12y

    Well, I don't allow any businesses to be run from the property. Clearly tell your tenant that. I have evicted for this in the past. The tenant turned the basement into a hair salon so slightly different in that, clients were entering the home, something not covered by insurance.

    She was evicted quickly. Your lease is a residential lease, and the property is zone residential, not commercial I would assume.

  • Jerry W.Pro Member
    Moderator
    Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
    12y

    @Account Closed it depends on the business model of the tenant. If the address is just where mail and phone calls come to it is not that big of a thing. If it involves sales and pick ups and deliveries then it is entirely different. Maybe take some time and ask some questions about how the business works.

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