I just learned something new today. In California, a tenant can open up a family child care business in your rental without your permission. They just need to inform you they’re doing it. The only way you may treat them any differently than any other tenant is to require a higher security deposit.
Here’s a document that California provides tenants to help them navigate this:
The only reason I became aware of this is that a prospective tenant said they plan to open one up in the rental home. Was checking what the law was and was surprised to find landlords have virtually no protection in this area.
Has anyone had a tenant set up a family day care in your rental? It could happen to any landlord at any time, so it’s good to be aware and informed.
Our tenant had a liability insurance for this purpose. She was well versed in this and basically told us she was doing this. Luckily, the wife was stickler for many things including keeping the property super clean and maintained.
There is no law requiring the tenant to have insurance. In rent controlled cities, the landlord can do nothing to require it. In other cities, landlord can simply terminate the tenancy after lease expires.
Why not make it part of the lease? In a commercial lease, it’s common for landlords to require the business to carry at least $1M of liability insurance. That’s for a small space. The policy also names the landlord as insured.
That’s ok I have no competition on this forum. But I just lost a duplex to a Stockton investor… better caps here than Stockton, I guess. I think he can get an 8cap out the gate…
Paid $300k can get $37k gross rent probably needs $25k rehab. Or rent as a grow house for $40k and do nothing…
So, you guys didn’t know about renters insurance. Wow!
Anyway, daycare as any other business has many limitations and rules. Out of my ignorance, I suppose they have to have insurance against injuries of the kids and whatnot liabilities.
And, be careful, discriminating against them can bring you no good. Check your landlord manual of discrimination. You have it, don’t you?
Oh, by the way, starting next year, you can have your own plant of Marijuana in your back yard.
If they make marijuana universally legal. It will be grown on huge farms. No grow houses and no profit. And the price will crash… no more crime… just a lot of stoned idiots crashing into each other
Price to the grower will crash. The price to consumer will stay about the same thanks to taxes. That’s why Humbolt County usually votes heavily against legalizing pot. They know it’ll kill all the local growers.
Even before legalization, anyone with a prescription could have 99 plant for personal use. They were allowed to sell excess to dispensaries.
Our rental agreement prohibited us running businesses in our rental. I was told this was explicitly to prevent us running a daycare (as opposed to running a software business or etsy business or something). Someone has recently told me this is illegal. Thoughts?
Wow… Thanks. Now, the bigger question is–having had a verbal understanding that this clause was only to restrict me from putting in a daycare, could they prevent me from running a woodworking business out of my garage?
