Tenant wants to operate her business

Investor · Huntington Beach, CA · Member since 2015 · 105 posts · 25 votes

Hi investors, our triplex is located in Los Angeles. A prospect tenant is looking for a live/work place and found ours. Her nature of business is jewelry making/selling. Does anyone have any experience with a tenant operating a business and what we need to be aware of? Any clause you added to the lease agreement? Additional security deposit you corrected? Thank you in advance!

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

I do not allow businesses in my rentals, period.

Now, if she's making the jewelry and selling it online, with no advertising at the property and no customers coming and going, that would be acceptable.

If she wants to operate a store in the rental, I would not allow it.

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
5y
I do not allow businesses in my rentals, period.
Now, if she's making the jewelry and selling it online, with no advertising at the property and no customers coming and going, that would be acceptable.
If she wants to operate a store in the rental, I would not allow it.
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Shiva Bhaskar
Investor · Los Angeles, CA · Member since 2017 · 523 posts · 476 votes
5y
Hi Miho. I'm a local attorney and investor. I think as long as she's not having customers over, would be OK, but you would want to be sure to get more details, and have the appropriate language added to lease. However, if your triplex is rent stabilized, there may be restrictions on what you can add.
My advise is to connect with a landlord tenant attorney, and get some basic advise on what is needed. I have several I work with in our investing, one of whom managed a portfolio of rentals and commercial spaces in LA. If you want to send me a colleague request or message, I am happy to share the contact information with you.
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
5y
I agree with the others. If she's not having increased wear and tear (eg cleaning company that would have extra laundry) and not having customers in the home, I don't see a problem with an online company.
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Miho Y.
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Investor · Huntington Beach, CA · Member since 2015 · 105 posts · 25 votes
5y
Thank you all. Yes, we need to come up with the release of liability clause to the lease. It is rent controlled area and zoned residential. Maybe she should look for a mixed unit zoning. Really appreciate all of your insight.
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