Landlord insurance - Tenant is child minder

maggiecon

Trying to get landlord insurance sorted and cant get any quotes.

My tenant is a childminder and is looking after 3-4 children on the property and insurance companies will not provide a quote for me as they say she is running a business from the property.

Child Minding is her livelihood so I cant ask her to stop.

Can anyone advise what is the best way to proceed. Are there any specialist insurers out there who will deal with this.

fishpond

maggiecon wrote: »

Trying to get landlord insurance sorted and cant get any quotes.

My tenant is a childminder and is looking after 3-4 children on the property and insurance companies will not provide a quote for me as they say she is running a business from the property.

Child Minding is her livelihood so I cant ask her to stop.

Can anyone advise what is the best way to proceed. Are there any specialist insurers out there who will deal with this.

Can not help with the insurance but I hope you are aware if your lender finds out you are likely to lose the morgage.

EmmyLou30

She has the choice to run a business from the property or not, that isn't your problem. I doubt your lender would be too pleased and there may be restrictive covenants on the property meaning you can't run a business out of it also. I would tell her that sorry, you can't allow that to happen from your property due to the mortgage lenders rules and the fact you can't get insurance, she'll have to either move or stop. I know what you mean though, seems harsh to say she can't do her job, but what choice do you have.

LEJC

Is she able to get insurance to cover the property whist she is living and working there?

theartfullodger

maggiecon wrote: »

...Child Minding is her livelihood so I cant ask her to stop.

Yes you can. Just write stating "Stop child-minding at 63 Acacia Avenue (or wherever..)".

Can anyone advise what is the best way to proceed. Are there any specialist insurers out there who will deal with this.

Check if you have broken mortgage terms (suspect very strongly you have.)

Evict using either or both s21 & s8 then get some new tenants who's lifestyle is compliant with your insurance & mortgage. Doubt evicting using s8 for being a childminder will get far with the judge but you could try.

When did tenant move in & any reason you didn;t check earlier.

Alternatively, change to a commercial, business, mortgage & get suitable insurance..

Cheers!

maggiecon

OH just texted tenant and asked her was she a registered childminder to which she replied no, she is getting money for being a carer for her best friend who has MS.

However, I know she is getting paid to look after children as she is looking after my friends children!! obviously getting cash in hand.

If she is not declaring this income and telling me she isn't doing it, how do I proceed?

Pixie5740

Issue her with a Section 21...you don't need a reason. Does she have a fixed term or periodic tenancy?

I wonder who would be liable if one of these children had an accident whilst in the property...?

fishpond

You either:-
1) Believe her.
2) Get her out, as she is probably in breach of the tenancy agreement she read and signed (check it 1st, Comes under ground 12 of a section 8 if memory serves me correctly ) also report to the local council as she is an unregistered c/minder so could impact in many ways including business rates, also report to HMRC as she is possibly not declaring income.
Your call.:)

theartfullodger

Blackmail is such an unpleasant word.

Discuss not declaring income to HMRC, then offer to allow her to leave tenancy early: Once she is out & handed back keys BOTH sign a "Deed of surrender"

We don;t want tax cheats in this country, any more than we want benefit cheats.,..

IceScraper

First up you know she is childminding therefore you need to insure this risk.


You are right that many companies don't allow it but Alan Boswell will find you cover. A friend of mine recently went through this. She was paying £X pa for insurance, cover with childminding was more so she got the tenant to pay the difference.


Another huge risk is that she is not registered, this means she has no public liability insurance for a business run from your house.


How would I proceed?


Chat with them and point out Not registered = Not insured to child mind = Huge problem for you as owner if problem occurs. Tell her she has to register. In the meantime you will be issuing her a S21 which you won't act upon if she registers.

xylophone

https://www.gov.uk/register-as-childminder-england

You might show your tenant this?