Potential Renter wants to run a business at property

Potential Renter wants to run a business at property

Rental Property Investor · Jacksonville Beach, FL · Member since 2016 · 97 posts · 108 votes

Hey Bp! Just put my first property up for rent on Craigslist in Jacksonville and within 1 hour had a call from an interested party who wants to run a daycare from the house. She has no problem paying the security deposit and passing a background check (I’ll check up on these). 

Are there any legal ramifications for running a business of that sort from a single family home? 

My only initial concern is the amount of people coming and going/upsetting neighbors potentially with babies crying.

Should I be worried about anything else? I’m brand new to being a landlord! 

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Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
8y

I'd be very careful around renting for use as a daycare center.  You are likely to be entering into a world of liability issues you never anticipated.  

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  • Investor · Columbus, OH · Member since 2017 · 861 posts · 1k+ votes
    8y

    My thoughts: make sure its OK with zoning/HOA, ask your insurance company about liability and any sort of requirements for insurance the tenant would have to have. Also consider increased wear and tear, eg on plumbing with all the extra laundry/washing/little kid bladders etc. Lead paint or any paint chips etc also.

  • Rental Property Investor · Jacksonville Beach, FL · Member since 2016 · 97 posts · 108 votes
    8y

    Thanks @Account Closed ! I'll definitely check with the insurance provider. There is no HOA, but I looked into zoning.


    The property is zoned RLD (residential low density). One of the permitted uses in Jacksonville for RLD districts is family day care homes meeting the performance standards & development criteria set forth in Part 4. Part 4 goes on to say day care centers with between 1-14 people must meet the minimum lot req'ts (no extra req't here). Center must have adequate off street parking. Limited to operating between 6am-7pm.


    It does say "Where a center is contiguous to a residentially-zoned property, a six-foot visual barrier, not less than 95 percent opaque, shall be provided along the property line, excluding any required front yards." 

    ^Does this mean the backyard must be fenced in with a 95% opaque fence?

  • Investor · Columbus, OH · Member since 2017 · 861 posts · 1k+ votes
    8y
    Originally posted by @Thea Linkfield:

    Thanks @Account Closed ! I'll definitely check with the insurance provider. There is no HOA, but I looked into zoning.


    The property is zoned RLD (residential low density). One of the permitted uses in Jacksonville for RLD districts is family day care homes meeting the performance standards & development criteria set forth in Part 4. Part 4 goes on to say day care centers with between 1-14 people must meet the minimum lot req'ts (no extra req't here). Center must have adequate off street parking. Limited to operating between 6am-7pm.


    It does say "Where a center is contiguous to a residentially-zoned property, a six-foot visual barrier, not less than 95 percent opaque, shall be provided along the property line, excluding any required front yards." 

    ^Does this mean the backyard must be fenced in with a 95% opaque fence?

    Sounds like it.. I wondered why a lot of the local commercial daycares had that weird green plastic "filler" in their chain link fences.  

    So you'd have to also account for the fencing rules and costs.. 

  • Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    8y

    I'd be very careful around renting for use as a daycare center.  You are likely to be entering into a world of liability issues you never anticipated.  

  • Investor · Vacaville, CA · Member since 2016 · 433 posts · 249 votes
    8y

    I think I would look for someone else or raise the rent to account for liability and wear and tear. 

  • Member since 2016 · 13k+ posts · 12k+ votes
    8y

    Liability, neighbour issues as well as extensive ware and tear on the property will be through the roof. Licencing is also a major concern.

    My leases all state that no businesses may be operated on any of my residential properties. It is simply not worth the headaches.

    keep looking.

  • Rental Property Investor · Jacksonville Beach, FL · Member since 2016 · 97 posts · 108 votes
    8y

    Thanks everyone for the replies. We have received many other interested renters so crossing the daycare off the list was a no-brainer.

  • Lincoln City, OR · Member since 2015 · 59 posts · 54 votes
    8y

    I would not rule out all businesses.  In Oregon a business licence must list a physical address even if there is no office there and no clients come there. You can not use a PO Box for a locations.

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