Tenant running barber shop out of home

Member since 2020 · 13 posts · 2 votes

Hello,

I just found out my tenant is running his own barber shop out of my home. I don’t really have a problem with it as I don’t pay the utilities, I just want to make sure it doesn’t open me up to a lawsuit of any kind. Should I be doing anything additional knowing he is running a business out of my house? Thanks BP fam!

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Colleen F.Pro Member

Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes

@Daniella Spears you are probably not zoned commercial so they town may have a problem with this.

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
Quote from @Daniella Spears:

Hello,
I just found out my tenant is running his own barber shop out of my home. I don’t really have a problem with it as I don’t pay the utilities, I just want to make sure it doesn’t open me up to a lawsuit of any kind. Should I be doing anything additional knowing he is running a business out of my house? Thanks BP fam!

you are not paying the utilities now, but what if they stopped paying. Also where do you think a lot of that hair may go? If it is going down your plumbing system and clogs etc. that could be problemmatic
I also hope you are on public utilities and not a well and septic.
anytime you have more people coming and going it will increase wear and tear.
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Judy Parker
Rental Property Investor · Closter, NJ · Member since 2015 · 884 posts · 722 votes
2y
Is this Tenant a Licensed barber (check the internet)? Does the Tenant have business and renters insurance? Does your local board of health, building and zoning departments allow hair salon businesses to be run out of private homes? Not to mention hair salons clog drains on a frequent basis. The board of health licenses barbers and beauticians. You may want to put a stop to this before you get dragged into litigation.
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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
2y
Let's say his hand slips and someone's ear gets cut (ask me how I know this happens)
Let's say the injured parry realizes this is an illegal business.
Let's say they get an attorney.
Attorney will instantly realize that YOU have the deepest pockets.
How does that sound to you?
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Colleen F.Pro Member
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
2y
@Daniella Spears you are probably not zoned commercial so they town may have a problem with this.
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Owen RosenBusiness Member
Professional · Clinton Township, MI · Member since 2015 · 699 posts · 263 votes
2y
Quote from @Bruce Woodruff:

Let's say his hand slips and someone's ear gets cut (ask me how I know this happens)
Let's say the injured parry realizes this is an illegal business.
Let's say they get an attorney.
Attorney will instantly realize that YOU have the deepest pockets.
How does that sound to you?

Not to mention this activity will likely void your insurance in the event of a claim.
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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
2y
Quote from @Owen Rosen:

Quote from @Bruce Woodruff:

Let's say his hand slips and someone's ear gets cut (ask me how I know this happens)
Let's say the injured parry realizes this is an illegal business.
Let's say they get an attorney.
Attorney will instantly realize that YOU have the deepest pockets.
How does that sound to you?

Not to mention this activity will likely void your insurance in the event of a claim.

Great point!
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Christen G.
Rental Property Investor · Seattle, WA · Member since 2017 · 384 posts · 249 votes
2y
We love a side-hustle...until it gets real. How serious is this? Website/Insta and a ton of coming and going? Complaints from people? I have a clause in my lease about the numbers of visitors per day - so if something got egregious I could point to that on a 10/14-day. Like others have said there is potentially some liability there (america!) but only you know what's best for your property/neighborhood
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
2y
I don't allow businesses to operate out of residential properties. It increases the liability risk, it increases wear-and-tear, the tenant is using your property to produce an income, the extra traffic could impact their community, they may be operating in violation of the law, and more.
If I caught someone doing that, I send them an immediate cease-and-desist. I'm kind, but firm. Residential rentals are for residential use. If they want to run a business, I can rent them a business property.
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Alexander Szikla
Real Estate Agent · New York City · Member since 2020 · 820 posts · 641 votes
2y
Do you address this in your lease?
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Ezekiel Cardoso
AK · Member since 2020 · 4 posts · 0 votes
2y
Quote from @Christen G.:

We love a side-hustle...until it gets real. How serious is this? Website/Insta and a ton of coming and going? Complaints from people? I have a clause in my lease about the numbers of visitors per day - so if something got egregious I could point to that on a 10/14-day. Like others have said there is potentially some liability there (america!) but only you know what's best for your property/neighborhood
if u don’t mind- what kind of wording did you use for number of visitors? Is it a unique setting?
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