Can I run my small business from rented accomodation?

charlie_hillary

Hi all,

I have recently graduated from Uni and run a small business selling gaming computers. Currently living with my parents, I am planning on moving out with my girlfriend of 5 years within the next few months or sooner. 

My parents have said that having stock in our home voids the house insurance, hence I am renting a lock up to hold excess stock so there isn't much stuff at home. 

To cut to the chase, my ideal plan is to rent a 2 bedroom place, (convert one into an office non-invasively), with 2 car parking spots near and a garage - this way I save on travelling to and from the unit, and I'm happy to foot the extra costs that criteria entails. The garage would hold stock, I will make it secure and will only hold low value and bulky items. The nature of the PC stock is high value (in excess of £10000 total), but they're very large and bulky so aren't really a burglary risk.

My quesiton is, does that technically make my rental a business premise? Part of my business has customers turn up for PCs - I have done this for a year at home and at Uni with no issue and no hassle neighbours. I will tell the landlord of course, but I just need advice on if this is possible, and if so, if there's any extra insurance/business insurance I should/need to get and sort. And perhaps how likely I it is for me to be allowed to do so?

Many thanks in advance,

Charlie

lincroft1710

Your rental would still be predominantly residential.

You do not tell your landlord. Before entering into a tenancy you ask your intended landlord whether it is permissible to use part of the premises for business purposes as you have detailed above. Many residential properties have restrictive covenants forbidding any business use.


Large and bulky items will not deter determined burglars if that is what they are after

user1977

There will be insurance hassle which landlords might not want to be bothered with.

lookstraightahead

I'm wondering about everyone who has been working from home, rental and mortgage, during the pandemic - did everyone tell their mortgage companies ? (Sorry, ask) 

user1977

lookstraightahead said:

I'm wondering about everyone who has been working from home, rental and mortgage, during the pandemic - did everyone tell their mortgage companies ? (Sorry, ask) 

There's a difference between sitting in your spare room using your computer/phone, and actually storing stock, having customers visit etc.

lincroft1710

lookstraightahead said:

I'm wondering about everyone who has been working from home, rental and mortgage, during the pandemic - did everyone tell their mortgage companies ? (Sorry, ask) 

There is a vast difference between "working from home" and "running a business from home". Especially where the latter involves keeping large amounts of (or valuable) stock at home and clients coming to your home.

Annisele

There might also be planning issues. If OP is intending to have a bunch of customers or deliveries turning up at the house, they might need planning permission - and I'd expect the vast majority of landlords to nope right out of that one. Just because one set of neighbours hasn't complained doesn't mean the next set won't.

NameUnavailable

I would consider renting a self store unit, many people run businesses out of them and they are much safer for keeping stock than a lock up garage.

lookstraightahead

lincroft1710 said:

lookstraightahead said:

I'm wondering about everyone who has been working from home, rental and mortgage, during the pandemic - did everyone tell their mortgage companies ? (Sorry, ask) 

There is a vast difference between "working from home" and "running a business from home". Especially where the latter involves keeping large amounts of (or valuable) stock at home and clients coming to your home.

Yes there is I know, but you should be doing it anyway (I believe). The type of business has different permissions of course, but I think working from home at all requires permission, in theory, from mortgage providers (which obviously lots of landlords also have)

lookstraightahead

user1977 said:

lookstraightahead said:

I'm wondering about everyone who has been working from home, rental and mortgage, during the pandemic - did everyone tell their mortgage companies ? (Sorry, ask) 

There's a difference between sitting in your spare room using your computer/phone, and actually storing stock, having customers visit etc.

Yes, different permissions, but I think all kinds of working from home needs permission. Mortgage lenders and insurance companies.

walwyn1978

WFH on ‘clerical’ work is usually fine under regular house insurance. 

WFH with customers coming is completely different and would be a separate policy, potentially including public liability etc as you would have the public on your business premises