Daycare in a rental property?

[Melissa Chinn]

I have potential tenants who are inquiring about renting one of our properties. They operate a licensed and insured daycare. What are your thoughts about this? Are there any legal issues or things I should look into on my end for allowing this? They are licensed for 12 children, currently have 9.

[Andrew Johnson]

@Melissa Chinn If something happened to a kid on the property you'd better believe the lawsuit won't just have the daycare listed on it.  I'm imagining that your insurance policy doesn't cover a business operating on the site, but I could be wrong.  I'm far from an insurance expert but having 9-12 kids bouncing around increases the risk and (likely) the policy premium.  Not to mention, can you imagine the wear and tear on the property?  Have you been to a birthday party for a 3-4 year old?  Then imagine it daily, in unit you're renting out, with only 1 months rent as a security deposit...