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Updated over 5 years ago on . Most recent reply
Renter setting up LLC at private contractor?
BP-I am currently house hacking my first property (renting by the room in a townhome) and have a new tenant moving in next week. He just informed me today that he is setting up an LLC to be a consultant/private contractor for work. The lease agreement (obtained from a fellow house hacker in town) states the following (which said tenant agrees with all terms):
- USE OF PREMISES. No part of the Premises shall be used at any time during the term of this Colorado Lease Agreement by Tenant for the purpose of carrying on any business, profession, or trade of any kind.
Is this something I need to forbade/is there any risk associated with him setting up his LLC as a tenant? On the surface, I don't see any major problems with allowing him to be employed as a private contractor. I don't believe he will be carrying out his business from my house, but just working for a company that will only hire him as a contractor and know it is common to set up an LLC. Am I missing something?
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- Real Estate Professional
- West Palm Beach, FL
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I started out contracting out of my home, for years. I don’t think a single person ever came to my home.