Can A Tenant Run A Business From A Rental Property


Both Tenants and Landlords have asked Paul Hill Realty Hope Island the question – “can a Tenant run a business from a rental property?”  In this article, we hope to clear up this matter.

A large number of tenants figure that they can run a business from home, like beauty services, day-care, music lessons, tutoring, an eBay store, or even be a host on Airbnb without repercussions. Tenants should always seek approval from their Landlord before undertaking any business activities on the rental property.

For Landlords, there are multiple things that really should be considered before Tenants are given permission to run a business from the rental property.

  • Each council body has different regulations, so approval must be sought to comply with any relevant laws and local government regulations before starting business operations at the property.
  • The Tenant needs to provide proof that they have all relevant licences and registrations as legally necessary, and the business needs to continually comply with all relevant legislation.
  • The Landlord needs to check if their mortgage prohibits business being run at the property.
  • The Landlord will need to check with their insurance company to ensure that they will be covered if the Tenant runs a business from the property. Furthermore that the Landlord insurance premium or excesses won’t increase from the Tenant doing so.
  • The Tenant ought to likewise have a Public Liability Insurance Policy that is suitable to the business type and provide a duplicate of the Certificate of Currency to the Landlord, alongside each subsequent renewal.
  • If the Tenant will be having their patrons visit the property to conduct business, then thought ought to be made regarding the amount of street parking accessible to use. Also whether the patrons coming and going from the property will disturb the neighbours.
  • The Landlord will likewise have to consider if running the business requested by the Tenant from the property would increase the wear and tear of the property, far beyond the level that would be typical for a property that is just the Tenants’ home.
  • Increased usage of house utilities (e.g. water, electricity) should be considered, in addition to the possible constant running of air conditioners, dishwashers, washing machines/ dryers and so on, which is contingent upon the business type. This needs to be taken into account by Landlord, in order to decide if the rent per week will need to be increased to cover changes in house utilities and the likelihood of more maintenance expenses if a business is to be run from the property.
  • The Tenant is having stock dispatched to, or stowed away at the property may affect the Landlords insurance.
  • Any installations or fittings that need to be installed in order to conduct business needs to be removed at the end of the Tenancy at the expense of the Tenant.

In the event, the Tenant is as of now running a business at the rental property, and the Landlord has no knowledge of this, the Tenant could be issued a breach. There are often clauses in the Tenancy Agreement, which can be utilised.

For instance, a breach could be issued to the Tenant for the following reasons: exceeding the number of inhabitants allowed on property, utilising the property for illegal purposes, interfering with the peace, comfort or privacy of a neighbour, and furthermore increasing the Landlords insurance premium or even making it invalid.

All things considered, there are many things that the Landlord should not be trifled with if the Tenant desires to run a business from a rental property.

Looking for a Reputable and Professional Property Manager on the Gold Coast?

Remember experienced property managers can save you time, money and headaches.

If you are a landlord looking for an experienced property manager with your best interests at heart – look no further than Paul Hill Realty Hope Island! You won’t find a team that is more respected, reliable and trusted in residential property management.

The Paul Hill Realty office is located at Hope Island, and we manage residential properties anywhere on the Northern end of the Gold Coast. Paul Hill Realty Hope Island is your best choice in property management.

Learn more about Paul Hill Realty Property Management Hope Island – click here.

Get in touch with one of our experienced property managers at Paul Hill Realty Hope Island by calling 07 5577 1888.