renters want to teach preschool and toddler classes out of our rental property

[Brady Thompson]

Hello everyone, I have one rental property SFH and the tenant wants to run a preschool and toddler classes out of our house. They have lived in our property for 3 months and we have had no problems with them they have always been on time or early with rent. The lease states that they can not run any type of business out of the house. She wants to have 5 children. What is my liability when it comes to this? If I do let them should I increase their rent? Would you allow your tenants to do this? Should I just tell them no? any help or suggestion are greatly appreciated.

Bradt

[Danielle Moser]

I'm not sure of the laws and regulations in Indiana, but in NYS they are extensive when it comes to running a preschool, or daycare - unless they are doing so and not registering as a legal entity.  It would be a massive amount of liability on you.  Usually, there has to be an inspection of the property to be sure things are up to code when it comes to educating children, so any updates that would need to be made would fall on you, I would assume?  To me, it seems like a lot to take on.  Personally, I would steer clear.