Millions of people are self employed these days: according to HM Revenue, the current figures show more than 14% of the working population run a small business from home. With the job market so volatile and employment opportunities scarce, running a business from home is the answer to many people’s financial woes; it is also an excellent way to generate additional income on top of a full-time wage earned elsewhere.
But although running a home business is definitely not illegal, landlords do need to be aware of the legal implications to themselves should any of their tenants be operating a small business from one of their rental properties.
In order to run a business from home, the owner of the property needs to give their permission, and in the case of larger businesses, for example an extensive online retail store, the property owner may have a responsibility to apply for planning permission.
If the property is mortgaged, it is possible that running a small business from the property breaches the terms of the loan; buildings insurance policies may also be voided as a consequence.
And if the tenant uses the property address to register a small business, which subsequently runs into financial difficulties, you the landlord could end up suffering all kinds of woes with credit reference agencies.
What should I do if my tenant is running a business from home?
Ask them to cease trading immediately, and if this fails, give them notice to quit the property and inspect it to check for damage or alterations.
