What does your lease say about running a business from the rented space?
@Michael H. , most standard leases have a clause about not running a business out of the home. If your's contains this you are in good shape. Ask him to stop or you will have to evict him. Too much liability for you. If he accidentally poisons a bunch of people with salmonella or something, guess who will also be named in the lawsuits.
Your lease should cover this. Most prevent people from running commercial businesses out of the property.
There are many issues with this outslde of the condition of the property. Business license, permits, random traffic, neighbor complaints, grease fire risk....and the list goes on.
Send them a cease letter (in AZ it is called a cure notice) to correct the violation. If not remedied within the cure period, start eviction procedings....and be ready to scrub walls and re-paint.
If you lease does not prohibit operating a business from th eproperty it does not matter. He would need a licence and will never qualfy for health reasons. He is also a high risk fire hazard. Tell him to stop immediatly or you will evict. No questions asked, lay dow the law immediately.
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