Tenant began minor auto repair & cleaning in garage - RISKY ?

Question

After move-in, one of my tenants began a business of purchasing used or auctioned cars, doing minor repairs and cleaning in the garage, and transporting to a used car dealership to sell. I was not aware of this activity until they called to notify me of the carbon monoxide detector alarming in the bedroom above the garage. It's a walkup townhome unit, which is side-by-side adjacent to units on either side. 6 units in all. The fire dept arrived and could not find the source of the CO, and suspected a car had been left running in the garage without adequate ventilation since the CO reading was highest there, in the bedroom above and the adjacent units garage. The tenant denied leaving a car running. I've since installed a fire/CO detector in the garage, and sent an email to the tenant urging and highlighting the association's rules that no in-home business that causes risk to safety and health, is allowed. Also that no engines may be left running in the garage, no "major" auto repairs which causes a hazard of fire or explosion, hazardous materials that create a danger of fire or explosion are prohibited.

My concern is a while the used/auctioned car is parked in the garage, the risk of a spontaneous fire igniting in a car engine that may have been poorly maintained (ie. leaks etc.). This would out not only the unit in peril, but the adjacent units and residents.

I'm waiting to hear from the city reagrding any codes prohibiting autorepairs.

These are very nice tenants. But I am tempted not to renew the lease due in 2 months. Of course I can require them to obtain additional insurance liability, but still who wants that risk to property and occupants.

Am I overreacting ? Your thoughts.

Lynnette E. · Answer

The OP said that it was being ran as a business. I do not think it is unreasonable for the tenant to rent a commercial auto shop or a bay in a shop for his work if he is at a business level. Any changing of chemicals, depending on the state, could result in environmental filings/records being required. Disposal of parts cleaner, depending on the state and solvent can also require permits. Those odors can leach into the house, and some of the chemicals have health warnings.Why would a landlord allow such activity with additional risk and no additional benefit to the landlord? Tenants are easy to find. With emergency services called once, why take the risk of a second event? What is the benefit to the landlord?

Mindy Jensen · Answer

Our Illinois Lease (and probably all other states) says:"...the Premises may be used only as a private residence for those individuals. ... Tenant agrees to comply with and abide by all federal, state, county and municipal laws and ordinances in connection with the occupancy and use of the Premises."While I am not an attorney, I interpret this to mean that the property can only be used as a residence, and the tenant will only use the property as it is zoned.Auto repair places use some pretty caustic chemicals and I cannot imagine the city would allow this to continue to operate in a residential neighborhood. It's one thing to change your own oil or repair your own car, but quite another to open up a shop.I would send a Notice to Quit immediately.

Rod Hanks · Answer

@Marsha BurksDefinitely not something I would allow on my property.

Lawrence P. Schnapf · Answer

You didnt expressly mention (or I missed it) that the unit is part of a condo association. This adds to your potential liability since you would be help responsible by the condo association for leasing to tenant who violates the association rules. You may want to send a notice of lease default due to the unpermitted use and give tenant 30 days opportunity to cure. You should also check your association rules to see if you have any obligation to notify the association of any violations of the rules....you didnt mention what state. if its Florida, i can refer you to a good condo lawyer...

Lawrence P. Schnapf · Answer

your tenant would have to comply with a variety of environmental laws and as owner of the property, you could become liable if the tenant contaminants your property. how is waste oil and other autofluids managed? does the garage have a floor drain? if so, does it discharge to sewer or septic system. The tenant should not be allowed to discharge any fluids into the sewer or septic system. you will want them to use secondary containment for all waste storage containers. as you can see, there can be lots of regulatory issues.

Scott Trench · Answer

@Marsha Burks many leases have addendum in them that include language about not running a business from the property. There is nothing wrong with a tenant doing basic car maintenance such as Repairing cars (oil changes, etc) on their own. But running a business out of your property? That will cause noise, visits you don’t want, and problems like the one you experience.Check to see if you have a clause to this effect already in your lease. @Mindy Jensen - do our standard BP leases contain language preventing businesses from operating in the leases units? I can check in a few hours as well.

Dallas Hayden · Answer

Commercial building just for auto repairs?! I respectfully disagree. I would allow tenants to make minor auto repairs to their cars like oil changes (if used oil is properly disposed), air filter changes, tire rotations, etc. If you prohibit any repairs, where do you draw the line? What if the tenant needs to fill a low tire? I would permit the tenants to perform minor auto repairs on their own vehicles. Perhaps come up with a list of allowed minor repairs? Definitely prohibit the home auto repair business. I personally wouldn't rent a home/garage if I couldn't change an air filter on my car, etc. though. This may just be a "guy thing". P.S. In my experience garages should be fire caulked so I recommend you check into this just for the future. The CO may just be a symptom of bad fire caulking/sealing in the garage.

Lynnette E. · Answer

I do not think you are over reacting. I would tell them absolutely no car repair in the garage, they will need to rent a commercial building for that activity. Tell them that the units were not designed for the chemicals that can be used or created in that activity, and that there is not adequate ventilation in the garage and sealing of the air in the garage from the residential areas. Much better than finding out that the neighbor's baby died in their unit from carbon monoxide poisoning.

Dallas Hayden · Answer

I definitely wouldn't allow a tenant to run an auto repair business from a residential garage. I'd just recommend allowing the tenant to make minor repairs to his/her own cars in the garage. Of course, the tenant would need to carry insurance on the cars, dispose of any chemicals properly, etc. Of course this may vary depending on your location and average HH income. Where I live it would be tough to rent out a house with a garage at market rate while prohibiting all auto repairs. Nearly everyone here has a car and most of us wind up making minor auto repairs from time to time. P.S. Cleaning chemicals are an entirely different ball of wax IMO. I wouldn't allow any parts cleaning, etc. even on tenant-owned vehicles.

Marsha Burks · Answer

Yes, I omitted the association in my information above. Since the new tenants lease ends Aug 31st, I've notified them that I will not be offering them renewal unless they seize the repair activity. They'll be giving me a written response this Saturday. However I should notify the association. I'm in Illinois. Other than this situation, they've been very good tenants. I suspect they'll comply. Thank you for the feedback.