Renter started a daycare

[Tim Johnson]

Hello BP!  

I have a situation I'm not sure how to handle.  I have a couple renting my sfh.  Last fall they were falling being in rent an having to pay late fees.  But since December they have been paying on time.  I found out recently the wife is doing childcare to supplement their income.

I'm not sure how to react?  On one hand I'm glad they are taking the initiative and working hard to come up with rent.  On the other hand, there is a concern that there could be more wear and tear on the house, and I'm not sure if there are any liability concerns.  I have not discussed this with the tenants...as far as I can tell she is watching are 3 kids under the age of 5.

Any recommendation on how to handle the situation?  Looking at the lease, I don't have anything in there expressly prohibiting a childcare situation.  Should I care and what should I do?  

[Wade Sikkink]

Our lease prohibits the tenant from operating a business of any kind out of the property.  I think you are right to be concerned about extra wear and liability.  Is she properly insured to run a daycare?  If not, could someone come after you particularly since you know about the daycare?  Maybe.

I would contact the tenant and tell them that they are not to be running a business of any kind out of the property.  If there is no such clause in your lease, you may not have a legal leg to stand on, but maybe you can negotiate with her to stop doing it.

Good luck!