Landlord says tenant’s in-home business is his business

Question: I want to start a business at home, but my landlord refuses even to listen to my request. Why would he care? How can I change his mind?

Answer: Since there are hundreds of home-based business possibilities, the landlord may be wary of what yours might bring, including outside visitors, noise, parking problems and stress to neighbors.

Other concerns might include insurance claims, increased costs for utilities, fire and safety issues and that the business violates the law.

Why the fuss? Businesses that involve outside employees sometimes pose a problem to other tenants, since having strangers coming and going on a regular basis, including delivery personnel, is not desirable in residential housing. Increased foot traffic annoys some tenants, requiring landlords to deal with unhappy residents.

And there is, of course, the noise. One tenant started a talent agency in her living room. When the singing auditions began, the sound of wailing voices caused some neighbors to reach for their phones. The business was a poor choice for a residential area, and the tenant was asked to close it.

Employees, if required, also take up parking spaces, causing frustration for residents. Unlike commercial areas, residential neighborhoods are rarely equipped to handle additional traffic and parking usage.

Insurance and liability issues may have your landlord balking too. If someone slips and falls while visiting your business, who pays the claim? Fire hazards can also create tension and liability concerns.

Over the years, many cities have enacted strict regulations for home-based businesses.

For example, in Santa Monica, the list of prohibited occupations in a home, rental or otherwise, covers nearly a dozen categories, including animal hospitals and grooming facilities, hair salons, carpentry and cabinet making, dance and exercise studios, firearm dealerships, junkyards and massage parlors.

Medical offices, clinics or laboratories are barred as well. Exceptions include one-on-one therapists, assuming fewer than six clients visit within 24 hours.

Even yard sales are regulated in some areas. In Alhambra, they may not occur more than twice per calendar year. The sale cannot exceed two days in a row, and it must be held between 9 a.m. and 8 p.m. Selling new or homemade merchandise is prohibited. Violations are subject to a possible misdemeanor criminal complaint filed with the city attorney, which requires a court appearance.

Some businesses are illegal for other reasons. Common sense would explain why any illegal activity such as drug dealing is prohibited, but why a hair salon? Due to health department regulations, the styling, grooming or tending of hair is illegal for home-based businesses in most jurisdictions.

Opening up a day-care facility is legal in most areas. Although some landlords may not be thrilled with the prospect, they can only restrict the use of common areas. If the rules apply to all tenants on the property, it’s fine. By the way, operating a home-based business requires proper licensing and payment of fees in many states.

The landlord may block your home-based ideas altogether in some cities. Beverly Hills, for example, allows a landlord “to prohibit or otherwise regulate a tenant’s ability to engage in a home occupation in an apartment unit as part of the lease or rental agreement.”

Still sold on a home-based business? After doing your research and proving that your idea is legal, quiet and benefits the community, how can you change the landlord’s mind?

Perhaps explaining that, by being home-based, you are able to keep an eye on the property. That might do the trick. Consider offering to sign for packages or let in service personnel, such as the plumber. If your business requires the use of more utilities, offer to pay for the increased costs. Proof of separate insurance, including fire and theft, also may prove persuasive.

Reader comments may be sent to hmayspitz@aol.com.