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what liability issue is there if a tenant wants to run a daycare
A daycare is one of the riskiest businesses a tenant can run from your unit. Your landlord insurance almost certainly excludes business activity, so if a child is injured you are exposed, and most cities require daycare licensing and zoning compliance. I would send a written lease-violation notice citing the business-use clause in the lease, with a firm deadline to stop. If you ever allow it, require the tenant to carry business liability insurance naming you as additional insured, and get proof of their state daycare license.
The big one is insurance. A standard landlord policy usually excludes business activity, so if a child gets hurt on the property you could get pulled into a claim your policy won't cover. If you allow it at all, require the tenant to carry their own business liability policy and send you a certificate of insurance naming you as additional insured — then actually calendar the renewal, because those lapse all the time. Also check city zoning and your state's daycare licensing rules, plus whatever your lease says about running a business from the unit. Most landlords I know just say no to home daycares; it's easier than policing someone else's business.
Hi Marsha, the main liability issue is that a daycare brings other people's children onto the property regularly, which raises your exposure if a child is hurt there. Most landlords handle it by requiring the tenant to carry their own liability policy for the business and name the landlord as additional insured, and by confirming the daycare is properly licensed under state and local rules. If your lease restricts running a business from the unit, get any permission or conditions in writing before it starts.
Hi Marsha - the main liability issue is insurance. Most landlord policies exclude business activity, so if a child is ever injured on the property, your insurer could deny the claim. There is also the extra foot traffic, noise complaints, and possible zoning issues, since daycares are usually not a permitted use in a residential unit. Best practice: do not agree to it verbally. If your lease prohibits business use, send a written violation notice. If you decide to allow it, require the tenant to carry their own business liability policy naming you as additional insured, and check with your insurer and a local attorney first.
Big one: your landlord policy almost certainly excludes business activity. A daycare means extra foot traffic, noise, zoning exposure, and real liability — if a child gets hurt, you're in the blast radius. If your lease bans business use, send a written violation notice. If you allow it, require the tenant's own business liability policy naming you as additional insured, and check with your insurer first.
