Daycare in Rental homes

10 Replies

We recently have tenants renting from us and have asked whether or not they can run a daycare out of the house for added income. Can someone give me some advice on this issue or should I take it up with an attorney. My sense says that no matter what we are responsible for anything that happens in the house, even if they have their own insurance. Thanks,
Jonathan

Sounds like a ton of liability. While there may be legal ways to mitigate your risk, you sense is probably correct.

Don't do it!

You will end up with far more wear and tear than normal. Most people leave their houses for about 8 hours a day to go to work, so they aren't there breaking anything either; a daycare will have ADDITIONAL (potentially destructive) bodies there during that 8 hours.

You will have drop-off and pick-up parking and traffic to deal with.

Does the Zoning of the property allow this use?

Neighbors will not be happy. Although it isn't my job to keep the neighbors happy with my rentals, I do try to keep harmony as much as that is possible.

Liability is just another reason.

Not so fast. Check your state laws before you decide whether or not to allow a daycare. Most people don't know this, but in some states (like mine - California) the tenant does NOT need the landlord's persmission to run a home daycare. They only have to advise you that they are operating one.

Here's some info on the subject (for California landlords):

http://www.childcarelaw.org/docs/qanda-landlords.pdf

@Jonathan Goering Don't do it. I agree with everything that @Steve Babiak said. Also, the liability is huge. My wife used to run a daycare center and later had a home daycare. The biggest thing is injuries. Kids are constantly getting hurt. You're not at the house. You don't know how safe your tenant will be with the kids. You don't know if your tenant has a pedophile friend that will hang out there. You don't know if your tenant leaves knives or guns within a childs reach. There are too many potential problems.

Even if your tenant has insurance, you will be sued if something goes wrong. The lawyers always sue everyone.

It's just like tenants calling with pitbulls. I always say I don't allow them. They go on and on about how nice their dog is. They will even offer to get insurance to cover the dog. You will still get sued if the dog bites someone. Trampolines are another lawsuit waiting to happen.

Is the zoning residential or commercial? Other residents will have problems with one tenant running a commercial business in a residential area. Do you really want all the liability? Best to suggest they move on.

I've got a tenant who runs a daycare (I haven't had the heart to kick her out... yet). The kids (about 15 of them) run around the house unsupervised. They are tearing off siding, destroyed the brand new carpet, disturbing all the neighbors, and in pretty much every other way - destroying my house.

On the other hand, my mom ran a daycare in my home for my entire childhood through college. Our house looked immaculate every day of those decades (minus the toy mess, of course).

So, it really comes down to the type of person who is running it. I generally wouldn't take the risk ( my tenant didn't ask, and it's not a "real daycare" ... she is just watching her sister's and friend's kids...). Obviously, check out the laws - but there are always other ways to remove tenants.

Anyways... I'm off to go remove a tenant...

I wouldn't allow it.

My lease says strictly for single family residential purposes only, no commercial use and no business purposes.

Daycare sounds like too much liability.

Kids get injured. What if they hire an assistant who turns out being a sex offender? What if there are too many kids, not enough adults... or adult gets sick and kids end up on their own for even a minute? What if some kid's parent claims something untrue about the daycare?

Plus, more wear and tear. Possibly (likely) damages.

More noise! Kids are noisy.

Any zoning issues there?

I'm not sure if you can "prevent" childcare at-home in your area from tenants, but if you can, I would. I can't imagine it being worth it. Then again, I'm picky, and it could mean lost tenant income for you.

A lot of residential zoning and Hoa rules allow for a small day care in a home, even if they do not allow any other business; there seems to be a special exception for that business

Your only means of stopping it may be your lease

Agree with above...DON'T DO IT!!!!! Your lease is your best protection against having it happen.

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