A Secret Weapon: The "No Business" Lease Clause

[Corey Goldstein]

I've been scrolling through a Reddit thread asking property managers about the "small, weird rules" they've added to their leases, and one response was a goldmine.

It's a simple, but often overlooked, clause: “Operating any business on the premises is prohibited.”

This might sound obvious, but this landlord's reasoning was spot on. A tenant's "side hustle" can quickly turn into a full-scale operation that negatively impacts your investment. Think about it:

• A "yard sale" that runs all year
• A car repair shop in the driveway
• An in-home daycare
• An Airbnb rental

These operations can lead to increased vehicle traffic, parking issues, noise complaints, and potential liability problems that you, the owner, are ultimately responsible for. They can also violate local zoning laws without you even knowing.

This one simple rule protects your property and your peace of mind. It’s a proactive step that clarifies what is and isn't acceptable and helps you avoid awkward conversations and potential headaches down the road.

I've already updated my leases to include specific language that prohibits any business use that impacts the property or the community.

So, here's my question to the BiggerPockets community: What's the weirdest business or side hustle a tenant has tried to run out of one of your rentals? And what's your go-to lease clause to prevent it?