My tenant wants to run a business from my property, how does this impact me?

My tenant wants to run a business from my property, how does this impact me?

Contents Insurance for Tenants

There has been a long time increase in people working from home, whether that means going full time in their own business or running a side hustle in the evenings and weekends.

But the pandemic really kicked this into overdrive, as so many people were out of work and struggling to find new roles, so decided to go it alone, so this is a timely question!

Even those who aren’t working for themselves are likely working from home some of the week instead of commuting in the traditional Monday to Friday, so it’s worth advertising if you have working space in your property, as that’s what a lot of renters are looking for these days!

However, if your tenant is looking to run their own business from your property, you do need to check a few things. 

person using a laptop

Mortgage and Insurance

If you have a mortgage, you need to check with your mortgage and insurance providers that your tenant running a business won’t affect your policies. Having a business on the premises could have a significant impact on your mortgage premium, so you will need to make sure that the rental income covers the increase in mortgage payments.

You will also want to make sure that your tenant has the relevant insurance for their business. While it’s standard practice for a landlord to insist on a tenant having contents insurance before they move in, you should double check that their insurance covers any expensive business equipment they might have, as this will potentially need to be covered by a separate policy.

If you own a flat, your leasehold might state that you can’t run a business from the property, so you will need to check that and let your tenant know.

What business is it?

What sort of business is your tenant planning to run? If they’re a freelance writer working on a laptop from the spare room, you’re unlikely to face many issues. But if they’re making some sort of item for sale, this could have a physical impact on your property, which is worth discussing and considering before you give your ok.

Ultimately, it is your property, so you do need to be comfortable with the idea of it being used as a base for business, which means having a thorough understanding of what that entails. If you are happy to go ahead, just be sure to tick all the boxes when it comes to mortgage and insurance.

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