Renting to tenant with a Day Care Center

[Lucia Lilac]

Hello All,

I am a Newbie to Real Estate Investing and have just purchase my second 2 family house. The house I purchased is in Rochester NY in the 19th Ward and I have a property manager looking over the property as I live in in Queens NY. I have a potential tenant that is looking to rent out the property but wants to run a child day care center out of it. I am a little bit iffy to do so as I do not know much about it, she says she has all the legal documents/certifications needed for it. Anyone have any advise on this? Thanks in advance!

[Andy McQuade]

Hi @Lucia Lilac, I'm up in Rochester as well.  Have you spoken to your property manager about this yet? There's a lot to take in;

1) For the other tenants in the duplex, noise and traffic.

2) for the property manager, additional liability for slip and falls from so many people coming and going, conflicts from pets with kids, making sure the lot is plowed first every day etc.  Safety inspections, requirements for mulch and safety equipment outside around play areas etc. all have to be considered.  

3) zoning for daycare - is it even legal to do a daycare here? Typically you need a permit AFTER the location is occupied

4) certification from the local school district, typically there is a site-inspection required before they will add them to the list

5) your insurance policy as the owner of the building may exclude protections or void coverage if a daycare is operated out of the location.  Check this carefully.