Excellent tenant, but now wants to run a daycare

[Edmund Mcginn]

I am a new investor of a single family home. After some rehab, we began renting it in August of 2018. So far, so good. We’ve been fortunate as our first tenant experience has been excellent. Young family saving for new home. Rent always on time. Cares for home. Responsible. Nice people.

However, the tenant just asked me if it was okay that they begin operating a daycare of less than 5 kids. His wife cannot work as their youngest is still a few years from kindergarten. So they thought this would be a good way to earn money in the interim.

While I know it will be run safely and professionally by the wife, clearly there are concerns over liability, wear and tear, potential neighbor issues, etc...

Only because I know their character, I would like to make this work somehow. They have been very transparent with me and are offering to do what is necessary to make this happen.

But I also need to protect myself and my investment.

Any advice would be greatly appreciated.

[Nathan Gesner]

No.

You claim to know their character but you honestly don't. You know her as a renter but you don't know her as a daycare provider or business owner. Her character can completely change when attempting to run a business. You also have to consider the liability it opens you up to and the additional wear-and-tear it would place on your home.

Stick with what you know and what you have.