Written permission from Landlord

spilledink

Please help - landlord permission letter.

My private landlord has given his permission that I can use my rented flat for my business as a sole trader. I asked that he give me permission in writing and he has said that would be fine, but I would need to write it up. This is my first time as a sole trader and I've also not been a tenant for long. If you could reassure me that I've go the wording right I would be so grateful.

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I, (landlord) give permission that (tenant) can operate as a sole trader of handmade jewellery and fashion accessories from (premises I rent).

The property will not receive any paying guests and all business transactions will be conducted either online or off the premises.

Signed (landlord) Date

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In my tenancy agreement it says under tenants obligations: Not to carry on in the Property any trade profession or business or receive paying guests or exhibit advertisement so as to be visible from the exterior of the Property or use the Property for any other purpose other than a private residence for the Tenant.

My concern about what I've mocked up is that a) it doesn't sound very official and b) I'm worried that I might not have covered all of the ground that the permission might need to cover. Don't want this to come up at some later day and cause difficulties.

I realise it's not a very pressing matter, any response of constructive criticism greatly appreciated.

PlutoinCapricorn

I prefer 'clients' or 'customers' to 'paying guests'.

What about deliveries and storage: will there be large amounts?

PlutoinCapricorn

What you quoted is standard: the property is private residential so they don't want you running an acupuncture clinic for example; it is let to you and although you could have a family member stay a short time, they don't want you cramming in 6 students and charging them!

It is the landlord who must be kept happy, so an assurance that you will not be causing a nuisance with deliveries and visitors, nor having huge amounts of materials stored there should be enough.

spilledink

Thank you, that is great advice. Taking that on board; does this second paragraph read better?

The premises will not be open to customers. All business transactions will be conducted either online or off the premises. Deliveries will not cause a nuisance to other tenants or the landlord. Stock will be stored safely and responsibly on the premises.

InsideInsurance

spilledink wrote: »

Deliveries will not cause a nuisance to other tenants or the landlord. Stock will be stored safely and responsibly on the premises.

Why would you voluntarily add additional obligations on yourself?

Does your tenancy agreement explicitly prohibit business activity? If it does then state in the letter that it is a variance to the agreement and whatever the section number is

Secondly you need to add a perpetuity element otherwise when you sign a new tenancy agreement which again has the no business clause it would/ could superceed the letter as it is signed afterwards with the clause.

Ideally I'd look to actually change the agreement itself (as I do/ did) as this removes a fair amount of the issues.

PlutoinCapricorn

That sounds fine. You could mention "occasional small deliveries via Royal Mail" and "storing small amounts of stock" - if this is the case.

Would huge vans park outside? Would there be a fire hazard from piles of boxes?

What about insurance? Holding stock may affect home insurance.

spilledink

InsideInsurance wrote: »

Why would you voluntarily add additional obligations on yourself?

Does your tenancy agreement explicitly prohibit business activity?

Yes it does, as I stated above.

InsideInsurance wrote: »

If it does then state in the letter that it is a variance to the agreement and whatever the section number is

Secondly you need to add a perpetuity element otherwise when you sign a new tenancy agreement which again has the no business clause it would/ could superceed the letter as it is signed afterwards with the clause.

Ideally I'd look to actually change the agreement itself (as I do/ did) as this removes a fair amount of the issues.

Thank you, that's absolutely sound advice and I will do just that.

spilledink

PlutoinCapricorn wrote: »

That sounds fine. You could mention "occasional small deliveries via Royal Mail" and "storing small amounts of stock" - if this is the case.

Would huge vans park outside? Would there be a fire hazard from piles of boxes?

What about insurance? Holding stock may affect home insurance.

I have the occasional courier delivery but other wise Royal Mail, so will state that. My stock is mostly small jewellery components, which takes up very little room and I keep things very well organised. Thank you very much for the pointers.

InsideInsurance

spilledink wrote: »

I have the occasional courier delivery but other wise Royal Mail, so will state that. My stock is mostly small jewellery components, which takes up very little room and I keep things very well organised. Thank you very much for the pointers.

As per my comment, if he hasnt asked about how you keep stock dont mention it in the letter/ contract.

Why do you want to force yourself to keep it tidy/ stop yourself expanding into other areas unless you have to?

Ok, I am used to negotiating contracts for corporations and they are easier to terminate than a landlord getting you kicked out of your home but the basic principle of never giving them rope to hang you still applies!

Rhenser

spilledink wrote: »

In my tenancy agreement it says under tenants obligations: Not to carry on in the Property any trade profession or business or receive paying guests or exhibit advertisement so as to be visible from the exterior of the Property or use the Property for any other purpose other than a private residence for the Tenant.

In my experience, this is the type of clause often insisted upon by a lender under a BTL mortgage.

You may be wise to discover if there is a mortgage on the property (the land registry should be able to provide this info), and if so, whether the lender also agrees to you operating a business from this residential property they are lending against.

You may also wish to consult with the local planning office to inform them of your intentions to operate a business from what is designated a residential property.

I guess what I am intimating at is that the landlord may not be the only person who has a say in this, despite what he may suggest to you.

InsideInsurance

The mortgage would be of no concern to the OP, that is a matter between the landlord and their bank - a hornets nest I wouldnt touch.

It may be worth speaking to the planning office/ local council but on the basis there is no conversion, no advertisement and no visiting clients/ customers I'd be tempted to fly below radar but accept there is a very small risk associated with it