Daycare in a rental property?

Question

Deanna McCormick · Answer

Why would you even think about permitting someone to run a business out of  your rental property  Your not commerical property

Don't even call your insurance company don't raise a flag asking that type of question !!

Andrew Johnson · Answer

@Melissa Chinn If something happened to a kid on the property you'd better believe the lawsuit won't just have the daycare listed on it.  I'm imagining that your insurance policy doesn't cover a business operating on the site, but I could be wrong.  I'm far from an insurance expert but having 9-12 kids bouncing around increases the risk and (likely) the policy premium.  Not to mention, can you imagine the wear and tear on the property?  Have you been to a birthday party for a 3-4 year old?  Then imagine it daily, in unit you're renting out, with only 1 months rent as a security deposit...

Nick Leamon · Answer

I had a similar question that I asked on the forums.

https://www.biggerpockets.com/forums/81/topics/219...

The responses were basically that you need to contact your insurance company because you most likely aren't covered, and to get covered you will have to get a commercial property as you would for any business which is considerably more expensive.

I ended up not renting to them, because my insurance company didn't even write commercial policies and I would have had to go out and find another insurance provider, just didn't seem worth the hassle and expense.

But keep us updated and let us know what you end up doing and how it turns out.

Nick Leamon

Andrew Syrios · Answer

As others have said, you're most likely not covered by insurance and it would be almost certainly not allowed for them to run a daycare out of a property that is zoned residential.

Daycare in a rental property?

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