Leasing SF home (commercial zoned) to a daycare business

[Pranshu Tewari]

Hello folks. Looking for some guidance from the experienced operators here.

I own a single family rental home in Lockhart Texas (3100 sq ft) and I got an inquiry recently from a potential tenant who would like to rent it for her daycare operation (75). The property is zoned Commercial zoning and is in a good location inside the city. 

Does anyone here have experience leasing to a mom-and-pop daycare operator? What are the legal risks one should think about in order to decide if this is worth pursuing, and how can those risks be mitigated with insurance coverage? How should one think about the "wear and tear" I'd encounter with such a tenant since 75 kids are going to burn through the toilets, fixtures, walls, doors and windows pretty aggressively. 75 cars coming in and out of the driveway every day. I'm sure there are many more aspects of wear and tear that I didn't think of.

Do you have any advice with respect to how I might model this aspect of operating costs so I can determine a suitable leasing rate?

Thank you in advance.