Tennant wants to run a business from rental property

fishpond

A recent new tenant has asked for permission to run a beauty business from one of the rooms in the property. As her contract, also my morgage provider specifically forbids it, I am inclined to refuse permission for her to do so, even informally, as it seems I have everything to lose and she just moves on.
I have also been asked if this business could be run from a summerhouse that she would have erected in the garden at her own expense, I am unsure if even this is allowed.
Your thoughts will be welcome.

Pixie5740

If your mortgage lender won't allow a business to be run from the property then your decision has already been made. Would your insurance cover her running a business from the property?

I think that erecting a summer house would still be counted as running a business from the property. Your tenant would need to pay business rates and how would they get an electricity and water supply to the summer house which they would need for their beauty business?

I'd be inclined to say no in your position.

Davesnave

fishpond wrote: »

I have also been asked if this business could be run from a summerhouse that she would have erected in the garden at her own expense, I am unsure if even this is allowed.
Your thoughts will be welcome.

She's either as mad as a box of frogs, or she's having a laugh. It isn't going to happen.

J_i_m

Decline permission, and do so in writing and postage, special delivery etc to create proof of paper trail, delivery and receipt.

Kayalana99

Point out to her that the mortgage company won't allow it not you - and she will have this problem in any property she rents as you would need to have a commercial mortgage. I'd be tempted to add that you personally aren't bothered what she gets up to - but I think you'd be best putting your foot down here...beauty places are messy I assume you don't have a daughter who's attempted to dye her own hair in the bathroom!

da_rule

If she is keen to do it then you could apply to the mortgage company to change this. But tell her in writing that she will be liable for any costs (admin fees etc) of this application, even if the mortgage company refuse. You could also say that she would have to pay any fees and extra premium that running a business adds to your landlord insurance.

Overall it appears to be easier to just say no.

poppysarah

Having clients come to the house will really annoy the neighbours.

Env health probably not keen either.

jjlandlord

Mortgage is just one issue.

There may be restricitve covenants in the title deeds.
It may require planning consent and change of use.
It may trigger business rates liability.
It would probably mean that the tenancy would not in fact be an AST.

donfanatico

I'd say you are lucky she asked you in the first place.

Mr_F_Dorsetty

fishpond wrote: »

A recent new tenant has asked for permission to run a beauty business from one of the rooms in the property................Your thoughts will be welcome.

If it were me the answer would be a polite but very firm - No.

Not only because of your mortgagee not allowing it but because of all the 'ins and outs' of insurance, councils and planning plus the high probability the imagined business will all go pear shaped anyway. Which will then lead to her suppliers black listing the address of your property.

Unless you like putting your leg into a bear trap then whacking said trap with a stick to see how long it is before you lose your leg, I'd steer well clear.

fishpond

Many Thanks for the replies.
I will take that as a definite No then!