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Can I Use Part of My Home as a Business?
Can I Use Part of My Home as a Business?

If you are interested in using part of your home to run a business, please read this first.

Adam Willis avatar
Written by Adam Willis
Updated over a week ago

The short answer is no. The lease you signed does not allow any portion of the home to be used as an office. Most cities and HOAs do not permit home-based business either. 

Under the section Rules and Regulations of the Residential Rental Agreement, it states 

"The Premises (your home) are to be used only as a residence and may not be used for any business." 

The reasons home-based business are not accepted can be obvious while others may not be as transparent. Here are a list of items to consider why we restrict this activity:

HOA and City Zoning Restrictions:

  • Most cities require a business license and charge a fee. 

  • Disruption to Neighbors: additional noise, traffic, and parking issues are created.

  • Most Home Owner's Associations (HOAs) have rules called CC&R (Community Covenants & Regulations) that do not allow home-based business. 

  • As a resident an exception 

ADA Compliance & Guidelines:

  • Handicap/wheelchair access

  • Compliant bathroom, door handles, etc. 

  • Proper parking

Insurance Concerns:

  • The homeowners of the property you are leasing has a Landlord's Policy to cover the home from perils. Having a home-based business can sometime void the Landlord's Policy. 

  • You as the resident either have Renter's Insurance or Property Damage Liability Waiver. In both cases, these do not cover you from a loss as a result of a home-based business. 

  • You would need to carry additional professional liability insurance, business-owner insurance, and even other types of insurance to adequately protect you from perils resulting from a home-based business. 

Additional Wear and Tear:

  • Additional foot traffic, machinery, and draw on utilities

If you want to explore a home-based business further, please first check with the city to see if it's even possible and what requirements they have for you. Next, if the property belongs to an HOA, you will need to call them and meet all their criteria. Finally, Nestwell will contact the property owners and see if they would make an exception to the lease agreement. Please do not start a home-based business without written consent from Nestwell or the property owners. 

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