Tenant registered LLC under my rental property address no notice
Rental Property Investor · Albuquerque, NM · Member since 2014 · 92 posts · 19 votes
Tenant registered LLC under my rental property address no notice
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Attorney · Santa Cruz, CA · Member since 2015 · 345 posts · 358 votes
10yHi @Juan Ayala, I'm a lawyer here in CA. First, is it safe to assume that you do not want them registering their business using the address of the home where they live? Why not? There could be a lot of good answers to this question. For example, like @Roy N. suggested, it could be a violation of law, or their lease. But, it could also be no big deal if they are running a consulting business (like graphic design) where they sit in a chair inside and do not disturb anyone.
In California, the state does not allow LLC's to use P.O. Boxes or other rentals as addresses. They can however use an Agent for Service of Process. I think these guys charge $50-100/year.
One good thing about them using your rental address is that they are certainly planning to stay for the long run.
12 Replies
- 10yRoy N.Pro MemberRental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
I would first find out the purpose of the LLC and, assuming your lease restricts home-based business (if it does not, either your insurer or municipal zoning probably do), remind them of that fact.
If they will not actually be conducting a business out of the premises, have them correct their address registration to be the designation for the apartment. If it is still something you do not want, ask them to rent a mailbox at the local UPS Store (or equivalent) and change their corporate registration to that address.
- Attorney · Santa Cruz, CA · Member since 2015 · 345 posts · 358 votes10y
Hi @Juan Ayala, I'm a lawyer here in CA. First, is it safe to assume that you do not want them registering their business using the address of the home where they live? Why not? There could be a lot of good answers to this question. For example, like @Roy N. suggested, it could be a violation of law, or their lease. But, it could also be no big deal if they are running a consulting business (like graphic design) where they sit in a chair inside and do not disturb anyone.
In California, the state does not allow LLC's to use P.O. Boxes or other rentals as addresses. They can however use an Agent for Service of Process. I think these guys charge $50-100/year.
One good thing about them using your rental address is that they are certainly planning to stay for the long run.
- 10yColleen F.Pro MemberInvestor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
The case here in RI is similar that you need to have an in state physical address for service of legal papers for a business. You can use an apartment though not a p.o. box. We also have registered agent services that will accept mailings for as low as $50/year. I would let the tenant know you received the letter and mistakenly opened it. Let them know the lease prohibits business activities at the apartment so you were wondering what kind of business it is and whether they were planning for any clients to come to the property. Then decide. You may want to let them know about the registered agent service if the business is okay but you prefer the legal notices go elsewhere. The main purpose of these registered agent services is business filings like the one you received and legal notices not ordinary correspondence.
Reading this thread I curiously checked an old tenant who had a consulting business at one of our apartments, moved 6 months ago and his website still has our address. He changed his apartment to "suite" and since the street address is complimentary to his business name he hasn't changed it. Guess I have to remind him...
- Portland, OR · Member since 2016 · 15 posts · 6 votes10y
@Juan Ayala Yikes! I did this to my landlord, but its a whole house we rent not an ADU or in law apartment. I do woodworking out of the garage and started an LLC so I could open a bank for tax purposes.
In my mind, I'll change the address as soon as I move. My landlord ran his business out of the house until he moved so I didn't even think twice about it. It's not explicit in our rent agreement either so I just went ahead and did it. I think just having a conversation with him/her would be fine - they may not even know they did something wrong! Usually that address is easy to change.
- Sun Prairie, WI · Member since 2013 · 150 posts · 69 votes10y
Maybe he/she does some home sales business where they do parties at the client's homes or something online. I can understand not wanting them to have clients at your place but to freak about them using THEIR home address for an LLC is a little over the top, especially without more information.
- 10yRonald PerichPro MemberInvestor · Granite City, IL · Member since 2014 · 658 posts · 301 votes
I have a restriction in my lease that internet-based businesses are permitted in the residence provided no visitors or customers come onto the property. You can run an Amazon store out of your office without having product or people ever touch your front door. And as @Jennifer Levini stated, they could be doing online consulting or such.
@Account Closed, you might consider having a UPS Store as your LLC address. That gives you more privacy and if/when you move, you don't have to change anything. My box is kind of expensive at $240 a year, but I absolutely love the flexibility it brings. When I get packages delivered, they send me an email, I know there is always someone there, etc.
- Rental Property Investor · Providence, RI · Member since 2015 · 1k+ posts · 594 votes10y
PO Box. Have them get one or have them get a 30 day notice to terminate their tenancy. Let them decide. They can have one or the other.
- 10yDon KonipolBusiness MemberInvestor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
Almost no leases prohibit the tenant using his leased premises address as an address for his legal entity. The use of the premises as a actual ongoing business may or may not be addressed in the lease. Municipal ordinances will govern the legality of illegality of running a business, and the type of business from residential property.
In all likelihood there is nothing you can do legally until and if the tenant actually commences operating a business from the leased premises. The mere act of registering an entity is not commencing the operating of a business. You seem to not like the fact that the tenant has registered the entity at your home address, but this is also his home address. These are the things you have to accept when you become a landlord.
House hacking, as it's come to be known has become popular recently. I think many home owners do not understand that when they house hack they become a landlord, and aresubject to the provisions of the lease and all state and local landlord tenant laws applicable.
As a side note, those of the "sharing" generation will get first hand experience as to why their parents don't house hack when they get their first tenant that uses the tenant laws to violate the lease, not pay the rent, destroy the property and remain in the property without paying rent for an extended period of time.
- Vendor · Kalamazoo, MI · Member since 2016 · 93 posts · 56 votes10yMy LLCs have a registered address at my home but the only "business" done at my home is some accounting in Quickbooks in the evening. The actual business activity is run outside of my house at various locations. Just an example.
- Member since 2018 · 1 post · 0 votes8y
Good morning I have a question kinda similar I'm a tenant in Concord NC I am renting a house now the landlord is using the house address as his business address as well and nothing is really done in the house from what they said they were going to do before I move in so I moved in the master bedroom wall has been stripped and the ceiling fan has been taken out and all that is there is just the wires and it's like that in the 2nd bedroom they still have stuff in the house and the attic but they are still requiring me to pay the rent of 900$ on the 1st what can I do to either get them to lower the rent or fix it or whatever I can do help me with this
- Member since 2020 · 1 post · 0 votes5y
If you want to run ANY type of business using your residence address 1st thing to do regardless of contract statues, is to GET IN WRITING PERMITTION of your landlord, or face eviction prospect or lease non-renewal.
NO business should be allowed to run from the residential property without among other requirements:-Obtaining IN WRITING YOUR LANDLORD PERMISSION and getting a RENTAL , liability INSURANCE.
- Comply with all legal requirements, since your business if run from R-1 is still a subject to zoning, city codes, insurance, permits, licensing, liabilities, taxes etc.
The contracts can not cover all details or life situations. The contract does not say that keeping live elephant in the living room is a no-no, as well the barbeque inside the house is also not a permitted.
The landlord can get in trouble with the city, get citation from city codes and zoning department if there is car repairs shop is operated from his rental. (a health, environmental, public nuisance and waste, liability among others issues,)
Even if the lease doesn't directly disallow a business from R-1 there will be in contract something addressing tenant's responsibility to protect the landlord property , not creating waste, commit public nuisance, or damage.
I would have no problem to a good, responsible tenant for use the residence address for ex. handyman or plumber since he does not physically conduct his business from the home, and all his tools might be in his truck or rented storage, but I still would make sure that I am not being liable for loss, damage to his tools...and request he has a rental insurance, compliance with city regulations.Conducting online seminars is not the same as doing a hair extension, or running car repairs shop from R-1. But even some arts & crafts run from home can be problematic ex. accidentally cause damage to owner's property (ex. spill -can damage carpet) or cause fire and loss both to tenant and the landlord. Act as an good, responsible tenant and get an rental insurance that would cover all those losses.
Landlord can rightfully allow/disallow since he has the right to protect his /hers investment.
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