General Landlording & Rental Properties

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Jason Saenz
  • Investor
  • San Jose, CA
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Tenant wants to use unit as Child care home??

Jason Saenz
  • Investor
  • San Jose, CA
Posted May 23 2022, 20:11

Recently my tenant asked if she could use her unit as daycare home and ultimately we said no because of liability issues and did not want a business to be operated in the property. I thought that was the end of it but this conversation came up again today and she mentioned that it's the law that I have to allow her to have this care home that would allow her to have up to six children. Has anyone ever heard or dealt with this kind of issue before? From the research I've done California allows the tenant to do this and the landlord has no say about it, this sounds bizarre. Any help would be appreciated!

San Jose, California

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Bjorn Ahlblad
  • Investor
  • Shelton, WA
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Bjorn Ahlblad
  • Investor
  • Shelton, WA
Replied May 23 2022, 20:33

@Jason Saenz It is bizarre and I remember reading the regs on this because I could not believe it. Sounds pretty tight, an attorney may be able to help. Perhaps you can have some say in rents etc. Keep us posted!

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Replied May 23 2022, 21:33

Apparently she can according to this.  You can increase the deposit and the rent within the confines of the law.  She also has to get insurance and do a few other things.

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Terrell Garren
  • Rental Property Investor
  • Concord, NC
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Terrell Garren
  • Rental Property Investor
  • Concord, NC
Replied May 23 2022, 21:45

M2M rental agreements. The best thing I've learned in 12 years.  "You may run your daycare business and here is your 30 day agreement termination notice."

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Nathan G.
  • Real Estate Broker
  • Cody, WY
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Nathan G.
  • Real Estate Broker
  • Cody, WY
ModeratorReplied May 24 2022, 04:45

Good ol' California. Daycare is so vital that the Landlord loses personal property rights. How long until the State seizes homes for the homeless?

https://www.childcarelaw.org/w...

This is why it's important to know the law in your state. I recommend "Every Landlord's Legal Guide - California Edition" to brush up on basic Landlord techniques and your State law. It's written by attorneys, updated annually, and your ridiculously regulated state justifies its own edition while the other 49 states are covered in one book. Seriously.

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Kelsey Bailey
  • Property Manager
  • Bay Area-Greater Sacramento
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Kelsey Bailey
  • Property Manager
  • Bay Area-Greater Sacramento
Replied May 27 2022, 13:24

Legally you can not stop someone from doing this unfortunately for up to 6 children with a small family child care home license or 12 children for a large child care home license. They do have to provide you written notice about the daycare and you can require them to increase the security deposit they have on file with you up to 2 months rent if the home came unfurnished, or 3 months rent if it was furnished. You cannot use this as a reason to raise their monthly rent, ask them to leave, or require them to have liability insurance for their business.  

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Greg M.
  • Rental Property Investor
  • Los Angeles, CA
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Greg M.
  • Rental Property Investor
  • Los Angeles, CA
Replied May 27 2022, 14:56
Quote from @Terrell Garren:

M2M rental agreements. The best thing I've learned in 12 years.  "You may run your daycare business and here is your 30 day agreement termination notice."

And here is the process server my attorney retained to serve you your lawsuit. That person over there is from the federal housing department, they want to have a chat. That other person is from the CA government, they also want to have a chat. And that last person, he is an appraiser. He's appraising your... well, your soon to be mine building.