Clause in Tenancy Agreement about "private dwelling-house only" vs work from home

dalore

Hi All,

I'm about to renew my lease agreement with my landlord and he has sent me a new tenancy agreement. One of the clauses is:

"(7) To use the Property as a private dwelling-house only. This means the Tenant must not carry on any profession, trade or business at the Property and must not allow anyone else to do so"

Now I work from home and I am the director of my own company. I have a spare room dedicated as an office. The nature of my is such that I only work on a PC and the telephone and as such don't require planning permission from the council. I do however have once a week meetings with the other directors there and sometimes have 1 other director over working.

My question is that since I'm asking the landlord to change a few other items, should I also ask him to change this item and tell him about my company.

My proposal would be to change to clause to specify "... any profession, trade or business that requires council planning permission ..." as this would allow me in, but assure the landlord that a real business isn't being carried on.

My partner (who works for the council, but different department) reckons I shouldn't tell the landlord, that I should just leave it and ignore it otherwise he might start asking for commercial rates? What do you guys think?

I don't know if it changes anything but there are other flats in the complex that are being billed as live/work flats, so working from your flat is being promoted.

Thanks in advance.
dalore

debtfreein4years

talk to your landlord, ive a clause like that in my agreement, but have a letter from the landlord confirming that he doesnt have a problem with me working from home as a business. i freelance occasionally for a company that i used to work for and i do that via email and post and i also make cards and sell them at craft fairs for a bit of extra cash.

Gingernutmeg

My OH is self-employed and works mostly from home. We've always been clear and honest about this when we've rented anywhere (it's why we rent two-bed places, so he can have a room for an office) and it's never been an issue, in fact I don't think anyone has ever even raised an eyebrow about it.

dalore

Thanks.

I think I did mention it verbally, but I'll tell him in writing with some other requests and see what he says. Best to be honest (but I've been told I'm too honest at times )

poppysarah

dalore wrote: »

Hi All,

Now I work from home and I am the director of my own company. I have a spare room dedicated as an office. The nature of my is such that I only work on a PC and the telephone and as such don't require planning permission from the council. I do however have once a week meetings with the other directors there and sometimes have 1 other director over working.
dalore

Do you pay business rates for your "dedicated office"? No - then it's not a dedicated office in your house. And in terms of accountancy rules it's a good idea not to have sole use too.
And you can require permission off the council if it's in the leasehold terms if it's leasehold property. And if you're having people visit you at home in the course of your work then you may be causing parking problems which will alert neighbours to the fact you work at home and it's them complaining to the council that'll get you in the cack.
why does your landlord specify this?

dalore

I've checked on the council website and it says I don't require planning permission as my impact is small. One of the examples it gives is someone carrying on a business on just PCs and telephones.

I think it's only in the agreement because he used a template from Oyez as that is who the tenancy agreement form is copyrighted to. So hopefully he won't be against changing it.

Thanks for the info about business rates, I never really consided it. Whilst I don't pay business rates, I do claim a % of the rent as a business expense, all authorised by the accountant. I did find http://www.voa.gov.uk/publications/public_fact_sheets/working_from_home.html after searching and it has got some good info. Since the room is not solely dedicated I might be able to get away with no business rates, but it would seem I would need an inspection to do so.

PasturesNew

no

For the work you do, you're not really running a business from it.

Running a business from it might be if you were selling cars off the front drive (customers coming/going, test drives, bonnets/doors open and closed), or operating a taxi cab business (coming/going at all hours), being a childminder (lots of noise and drop offs/pick ups daily). Also, you don't have a couple of memebers of staff that turn up and work there Mon-Fri 9-5 and park in the road. You're also not manufacturing soaps and candles from your garden shed and having deliveries arriving/being collected.

The activity at your house is equivalent to a couple of friends popping over for coffee on a weekly basis and there is unlikely to be any disruption to your neighbourhood because of his (unless they are parking badly or inconsiderately).

You're not storing chemicals on the premises, nor holding large volumes/values of stock which might cause a burglar to want it, or cause a storage/fire risk.

Therefore it doesn't really count for the purposes and intent of the AST.

So no, don't bother telling him.

Robert_Sterling_3

dalore wrote: »

but assure the landlord that a real business isn't being carried on.

In what way is it not a real business? :eek: :eek: :eek:

planning_officer

dalore wrote: »

I've checked on the council website and it says I don't require planning permission as my impact is small. One of the examples it gives is someone carrying on a business on just PCs and telephones.

It's very much a matter of fact and degree in each case as to whether a material change of use to a mixed residential/business use has occurred. Whilst the above quote is true, it seems to me that your activity exceeds that, as you say:

dalore wrote: »

I do however have once a week meetings with the other directors there and sometimes have 1 other director over working.

How often does this other director work there? And how many 'other directors' attend this weekly meeting? At my council, if another employee is working on the premises, we often regard that as a change of use - although it does depend on the hours worked/journeys to and from work/deliveries/callers at the house etc.

RetroBob

no

This was cleared up for me when I recently renewed my contents insurance because I can work remotely (ie. from home) - computer and paperwork, admin etc. like you are doing is fine. They don't want it doubling up as a shop, warehouse, workshop, etc. etc.

poppysarah

But when you start having other people over to work you need employers liability insurance and probably business insurance on your business equipment.