Avoid Tenants Running a Business from your Premises

The information in the is article is with courtesy of Property24 (“When tenant run business from home” – 27 October 2008)

It is vital for landlords to make sure that tenants are well aware of what they can and cannot do with regards to running a business from home.

Property24 asked Brett Nicholson of Shepstone & Wylie Attorneys to indicate the problems that can arise for landlords when their property is being used to run a business.

Nicholson explain that the destruction and potential damage to your property as well as the possibility of accidents happening is only the start. Along with that, there is also the chance of theft and undesirable visitors entering your premises. Nicholson added to that saying neighbours might complain, leaving you to sort out the problems.

Nicholson’s advice to landlords is to ensure that there is a clause in their lease agreement that states that the premises may only be used for private residential property and no other purpose whatsoever. It is also wise to add that no business of any sort may be carried out from the leased property without the prior written consent of the owner. This will ensure that, as a landlord, you will be able to cancel that agreement by written notice should the tenant not comply.

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