A resident running a business in your rental property is not completely unheard of. Residents of single family rental homes can be quite creative when using their rental homes for unauthorized purposes.
Resident Running a Business in Your Rental Property
When these result in lease violations, the situation can get very difficult in a hurry. This is particularly true when a renter is using a rental home to run a business.
Rental homes are, by definition, residential properties. Any use of a residential property other than as a private residence may result in trouble and could create liabilities for you as well. Most cities, counties or owners associations have clear ordinances. If violated, they can lead to fines or other penalties.
However, determining whether a renter is running a business in a rental property can prove difficult. Some types of activities, such as freelance work, may technically violate a lease that forbids business activities, but are nearly impossible to prove.
Other types of business activities may increase wear and tear on the property. Or create nuisance issues, such as hosting clients, shipping or receiving large quantities of products. Or using the garage or other spaces for production or inventory purposes. These are also more visible, and
easier to detect.
Resident Running a Business in Your Rental Property: Complaints
Increased traffic or materials going in and out is one of the more obvious red flags. But figuring out whether this is related to a business venture can be tricky. Complaints from neighbors are a double-edged sword: they can alert you to a problem, but they can also create hassles for you.
The last thing you want is for your rental to become notorious as “that house.” But you also don’t want to damage your relationship with your renters. Leveling false accusations about suspected lease violations can ruin a perfectly good relationship, and lead to loss of rental income.
How a property manager can help
As the property owner, you’ll need to act quickly to put a stop to unauthorized business activity in your rental homes or risk liabilities. But figuring out whether a violation has actually occurred and how to take appropriate action can be difficult.
Hiring a reputable property management company helps solve this problem. An experienced property manager can help you avoid the difficult path of unauthorized business use of a rental home. First, they will include appropriate language in the lease itself, defining the terms of occupation.
A good property manager will properly vet potential renters, as part of the tenant screening process. They will carefully check for red flags and past violations. A great property manager will schedule and perform regular property evaluations, gathering information that can identify any contract violations. Finally, they will help you resolve the issue in the event of a violation, giving you peace of mind about your valuable real estate investment.
Instead of enforcing the lease on your rental property yourself, just imagine how much easier it would be to let Real Property Management Premier do it for you. Our property management professionals have the necessary knowledge and required experience. Look no further than Real Property Management Premier.
Contact us online or call 954-800-4433 and ask our property managers about our services in detail.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.