Investor · San Jose, CA · Member since 2015 · 246 posts · 183 votes
I was reading through the self-employed tenant thread and did a little research. In doing so, I discovered that California landlords cannot refuse to rent to someone who intends to run a licensed day care out of their home. I had no idea. I'm thinking of re-phrasing my clause which disallows use of premises for commercial premises to something along the lines of "unless mandated by state law." I don't want to give people any ideas, but at least I know how to address this if it comes up.
What the heck? That makes so little sense. It seems like that would mire one in huge insurance/liability issues. Maybe I'm being paranoid? But if a little kid trips on a tree root at a daycare at your house, couldn't you be held responsible? Wouldn't you have to get all sorts of extra insurance. And how about if the daycare person turned out be abusive? Your house would be "that creepy house where the kids were abused" like, for the rest of time.
@Kathleen Ennis On top of that, landlords apparently do not have the ability to insist that they get insurance. This is because the law allows licensed day cares to be insured, bonded or have the parents sign liability waivers.
I was dumbfounded when I stumbled upon this law tonight.
I have an issue going on similar to this now. When the tenants moved in the wife was self employed and on maternity leave; said she was going to get outside daycare when she went back to work however since the child was under 1 year daycare centers wouldn't take her child. So she decides to bring in a nanny/babysitter to care for her child and doesn't tell me that the babysitter will be bringing her own child with her to my rental to babysit both. I had to buy an extra umbrella policy to cover the babysitter and her kid. The tenant told me she has renter's insurance; I have yet to receive a copy after asking. The tenants pay their rent on time but I am going up on my rent dramatically early next year to cover my increased costs. I had a long discussion with the tenant telling her it says in my lease no commercial business is to be conducted on the property but she contested the fact that it was just a babysitter which equates to a business to me, since she is paying her for a service. So many gray issues with this one. Check the laws but I believe daycare providers only need a license if they care for 6 or more children.
@Vic French That is an interesting twist. This situation doesn't fall under the Day Care rule because the woman is not operating a licensed day care. The law does not mandate that you allow non-licensed day care. I would speak to an attorney. I think, at a minimum, you should get a release of liability from the tenant and the babysitter and an agreement that no other children will be babysat there. I think tenants should be allowed to hire nannies and such. What is pushing the envelope for me is that the babysitter is also watching her own kid on the premises.
@Vic French Absolutely you need to demand proof of liability insurance and I think you can increase the minimum amount to a higher level. My lease demands proof of insurance 15 days after initiation of lease. I would want to make sure that the renter's insurance covers any liability stemming from this arrangement. It may not.