Should I allow my tenant to work from home?
Thu 20 Aug 2015
The issue of tenants working from home often occurs and is getting more and more common with the growing dominance of the internet. Many new businesses start out at home and indeed quite a few stay that way for a number of years as the High Street is losing its importance as the place to open a business.
From a landlord perspective there has historically been confusion that if a tenant was allowed to work from home, the landlord may inadvertently create a tenancy under the Landlord and Tenant Act 1954 and the tenant will then gain an automatic right of renewal under Part 11 of the Act.
Section 35 of the Small Business, Enterprise and Employment Act 2015 has now been implemented by the Government which effectively stops this from happening. This creates a new definition of a 'Home Business Tenancy'. This is any tenancy under which the tenant is required to occupy the rented property as a home and is also permitted to run a home business from the property. Where a tenancy is a home business tenancy it will automatically be excluded from the Landlord and Tenant Act 1954.
Of course it is important to remember that there will still be other issues to consider when granting permission, such as the position of the Mortgage Lender and any restrictions contained in head leases.
January 2015View older stories >
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