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I am new to this forum and I would like some advice regarding some problem tenants.
I have recently discovered that my tenants are running a private limited company from the property. Though they are using their solicitors/accountants address as the registered address, but uses the property address on their company website and as contact details.
They have not asked for permission to run a business from the property.
Where does this leave me regarding council rates/building insurance?
Could this be classed as breaking the terms of the tenancy even though the registered address of the company differs to the property address?
I believe you are right that your tenants are in breach of their tenancy agreement (I assume there is a clause forbidding the running of a business) and yes, this may well affect your insurance and possibly your mortgage.
I am not a solicitor, but think you may need the advice of one. You could try posting your query on Landlordzone as they have some very experienced people who may be able to be of more assistance.
Kentish Lass Information given is based on my knowledge and experience and is not to be considered as legal advice
Now just a minute here, what exactly are your tenant's doing? I ask because my agreements state they must not run a business, without checking and asking permission first.
Now, if they were a self employed plumber, electrician, or mobile hairdresser, or maybe some sort of web site builder who works from home, I would allow that. After all, that is their source of income and how they pay the rent. What I won't allow is advertising at the property in the form of hoardings, signs and boards etc. Neither would I allow car repairs on the property, in the case of mechanics etc. In fact nothing that would cause either an eyesore or an upset in the neighbourhood.
This is a tricky one because I rent my home, and I work from home a lot and I don't consider my landord has any right to dictate to me whether I can do this or not.
So, I'd say you need to know precisely what they are doing firstly. If it is an outright business set up then that would be a no-no - mainly because of the business rates implication, but also because as a landlord in this day and age you want to be sure they're not cannabis growers etc! Neither would you want customers frequently calling at the property at all times of the day and night in connection with the business. Neighbour nuisance.
But, if your tenant was, say, a genuine mobile hairdresser, then he/she would of course have to advertise, but I don't think you could stop them following thier normal course of employment, just because they are a tenant and self=employed.
From what you say though it sounds as if they are running a full scale business, so in that case of course you want to ensure the safety and security of your property, and yes, there could well be business rate/insurance implications.
But, Like I always say, before going in guns blazing, try and sit down with them and get them to tell you what they are doing - it might not be so much to worry about after all. Only one way to be sure, book an appt, visit the property, and ask them.
Problem Tenants - Advice Needed Please!
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