Tenant operating business out of rental property

SCA911

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Hi,

We have been renting out our former home for the past 5 years without much hassle thankfully. This is largely due to the fact that we have been attentive landlords and been lucky with our tenants.

We are currently 2.5 years into a tenancy with a family. There have been some issues, i.e. changing things in the house without informing/asking us but for the most part uneventful. Everytime something was done outside of agreement we had a conversation with tenants about it and moved on.

It has now come to our attention that they are operating a creche/childminding service out of the house. Aside from the obvious non compliance with H&S, Planning, Fire regs, Child Protection, Tax and Insurance implications, etc, we are pretty annoyed at them for taking the mick. Last year we had the option of upping the rent significantly to bring it in line with market rents in the area but chose to keep it very reasonable as we figured they were ok tenants.

At this point we now would prefer not to have them as tenants as we are feel they are taking a mile when given an inch. It is in the contract that they were not to operate a business from the house and besides that the house is far too small IMO for a creche.

Where do we now stand on this. From what I have read they have breached their side of the contract. Am also concerned about areas such as validity of our insurance should something happen as a result of this business they are running.

Any advice would be greatly appreciated.
 
There's a big difference between a full sized creche and an individual minding one or two children.

Get the facts straight first.

If you have good tenants, keep them.

If you want to increase the rent (within the legislation) do so.

This is a business, be business-like.
 
There's a big difference between a full sized creche and an individual minding one or two children.
+1

Householders should be encouraged to mind children where suitable in order to alleviate the crisis in childcare availability. The quid pro quo should be though that where the home is rented, the landlord should at least be notified.
 
Hi

Thanks for the responses so far.

From what we have been told there can be up to 10 children in the house at a given time so I believe it is more than minding a a couple of children for a friend. My biggest concern is the possibility of something happening, god forbid, to one of those children in a house that is not suitable in size or facilities. Also I am concerned about the potential liability on us from insurance side of things and also the possibility of non compliance with rates which would be attached to the property, not the tenant. This tenant has quite recently changed the locks without informing us.

I'm not interested in increasing the rent as I have rented this property out as a home not a business. We have been fully compliant as landlords from day one, e.g. PRTB registration, Revenue returns, etc, and while I am not looking for a pat on the back for doing what I am supposed to do as a landlord I am annoyed that the tenant is putting us in a position of non-compliance in other areas.

What I was hoping to find out here is what is our position with regard to terminating the tenancy. From what I have read elsewhere the tenant is in breach of contract by operating this business which is grounds for termination.

Also I don't believe it is appropriate to put ourselves in a position of non-compliance and liability in order to help alleviate the national childcare crisis.

Thanks
 
I'd be for giving them the high-road, legally, but ASAP.

You will need evidence that they are in fact using the property to run a business in. Are there ads in local papers or shops, is there a web-site or Facebook presence advertising the service? Are there signs in the windows? How can you establish they are doing more than running a "kids party" from time-to-time? Can you talk to any of the parents using the service?

Once you have evidence, issue a "cease and desist" notice from your solicitor giving them 7/10 days to comply. Follow up with appropriate notice to to terminate the lease for breaches of T&Cs.

I'm amazed at the suggestions that you allow this activity to continue.
 
[broken link removed] site offering free advertising to "Insured Registered Childminders". It has a useful search facility by county or Dublin postal district. If they are not insured or registered, this is just a waste. If they are in breach of their lease / tenancy agreement what are the chances the business is registered, insured or tax-compliant?

http://www.tusla.ie/services/preschool-services/general-information Child & Family Agency Prescholl Services Information (don't hold your breath. Their own targets were set for 2014 and the site hasn't been updated since publishing the targets, 2012 / 2013 perhaps?)
 
your existing house insurance may be invalidated at present due to activities being carried out in the house
 
grounds for termination.
ok, so now I understand you.

You want the tenants out and you want to use this information to evict them.

Again, get your facts and evidence lined up. Document everything. Do an inspection visit.

And the best of luck with the PRTB!

Let us know how you get on.
 
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