Prospective tenant wants to use a property as a day home for kids

[kanabel]

Hello,
I am currently renting a duplex in Regina, and my PM was approached by a woman who wanted to rent the property in purpose of day home for kids. She offers higher rent than I ask, and would sign for 3 year lease, stating that she would get her own insurance for this type of business. However, I wasn`t excited much as I don`t have experience with this things, and at a glance looks like lots of liability for me as the owner.
Did anybody have experience with day homes or know anything about it before I dig deeper?
Thanks

DEJAN

 

[jcab256]

Personally I`d pass, as lot`s of kids running around will likely equate to more wear and tear, and damage.

If you are considering it, I`d speak to your insurance company and ask them about liability concerns.

But like I said, I`d pass on this.

 

[brentdavies]

Over the years we had several day homes in our properties. Group homes too.

Every city has it own rules on how day homes are operated, type of allowable properties and requirements for the home.

You need a lot of information from the operator, licence requirements, fire dept requirements, public health requirements, their experiance in operating a day home, insurance, etc.

Ask for thier business plan. If they are experianced operators, it will be easy for them to produce thier operations manual for example.

Or is this a start up business, or something the wife is going to do for extra money while she staying home with her kids. (good friend`s daughter is doing this.)

Bottom line, I would not hesitate to rent to a group like this, providing they prove to me they know the business.

Good luck

 

[invst4profit]

I would definitely pass especially considering the three year lease offer. This type of offer or large payments in advance is usually a big red flag indicating a problem tenant or situation.
Although many may think the long lease gives security what it actually only does is give your tenant security. The fact that they have made the offer would make me very cautious. I would simply say no without wasting any time researching the tenant.

 

[kanabel]

Thank you for your replies! I have already rented to another tenant today, as this case would require lots of DD, and in my case I didn`t have much time. Thanks again, as always, this is good place to exchange experiences.

Dejan

 

[PropertySolution]

I have just come into an agreement with a private owner that has a rental unit where a single mom runs a day-home. This will be my first experience with this as I have never allowed it before. After 2 months I have seen no obvious problems and the home is clean and quiet whenever I have "popped" by. Her license and Company information is clearly displayed on the entrance wall and she seems to be complying with all the legal requirements. But I must say I intend to keep a very close eye on the situation. BTW, she has been in the home for 1 year now.

 

[kir]

Hi, Would this type of situation lead to a commerical lease with some esculation built into a 3-5 year lease?
Utlitimately, would the rent be a little higher? If so, why not? Sounds like a type of marketing that I could do to certain corner lots (for the purpose of kids running around).


Kir.