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Help! My Tenant’s Running a Business in My Rental

 

Imagine travelling past your rental property, only to discover your tenant has taken up shop there – running an at-home business like catering or taking in laundry.
This situation presents many risks to a landlord:  excessive wear or damage to the property, increased costs, zoning violations, business licensing and tax violations,  irritation to the neighbors,  and the possibility that the landlord may be liable if one of the tenant’s “customers” gets hurt on the property.
How do you stop this situation from happening to you?  These three steps can help:
Careful Tenant Screening
If your applicant is self-employed, be certain they have a dedicated address as their place of business.
When screening the tenant, pay special attention to their profession.  Is it conducive to an at-home atmosphere?  Do they have a good reason to work at home, for instance a significantly long commute.  Are they strapped for cash or motivated to earn extra income in their spare time?
Prohibit Business Use in the Lease
Lay down the law before the tenant moves in by providing a restriction on business use of your property in the rental lease agreement.
Here is a sample of the type of language you will need:

No part of the Premises or Common Areas shall be used for the purpose of carrying on a business, profession or trade of any kind, or for any other purpose than as a private residence.”Since 1946 the Carnahan name has had a reputation for honest and ethical Real Estate Property Management services in the San Fernando Valley, Santa Clarita Valley, Burbank/Glendale, Los Angeles, Westside and Conejo Valley areas.The reason for our success is helping owners like you when they need it. Below is a partial list of property management services we provide to help you protect your real estate investment.

  • Tenant placement
  • Tenant screening (including: credit check, landlord and employment verification, social security trace report, california eviction check and criminal check)
  • Regular property inspections
  • Accounting and landlord bill payment
  • Monthly financial reporting
  • Maintenance service and supervision (we use only proven independent vendors)
  • Collections
  • Evictions
  • We supply all the necessary forms to meet California’s Landlord/Tenant laws
  • 24 hour emergency phone service
  • Advertising to the broadest tenant base possible

by Chris

Call or e-mail us today for more information. We’re ready to get started!

Carnahan Property Management services Woodland Hills,West Hills, Calabasas, Canoga Park, Tarzana, Reseda, Topanga, Encino, Northridge, Van Nuys,North Hills,Chatsworth, Sherman Oaks, Studio City, North Hollywood, West Hollywood, San Fernando, Granada Hills, Mission Hills, Simi Valley, West Lake Village, Agoura,Toluca Lake, Valley Village, Burbank
 

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