According to the SBA or Small Business Administration, almost half of every small business currently running in the U.S. is some kind of apartment or home-based business.
Remember, most towns comprise zoning laws that separate residential and business use of buildings. Therefore, recognizing local laws is mandatory before you start working from your rental. Here’s what you need to know before contemplating this move.
Zoning Laws
The major rationale behind restrictive or prohibitive zoning laws is to sustain a neighborhood’s residential character. It’s frequently illegal to reside in certain commercially zoned regions where you’re operating a business.
Zoning laws can enforce numerous kinds of limitations that will influence your capacity to sustain a home business.
A number of localities limit the right of proprietors to construct different structures. Limitations might also exist regarding the extent to which your home can work solely for your business. The same laws can restrict the number of workers you’re permitted to have or might not permit you to have any workers in your home.
Examine Your Lease
Each lease delineates the dos and don’ts of the renter. At times, the limitations are stipulated in general rules that apply to the building (often termed rules and regulations). Nevertheless, it doesn’t imply you’re in the clear if the agreement is silent.
If your business can potentially disturb other renters, it might breach other elements of the agreement. In the event that you’re renting a condominium, CCRs or Codes, Covenants, and Restrictions are frequently more prohibitive on home-based businesses compared to apartments.
To be on the safe side, just talk to the property owner and see whether he or she can be reasonable. Offer assurances that once the business attains a certain profitability or size, you’ll rent a different space.
Bear in mind that if the property is under the management of a conglomerate, which is frequently the case with bigger properties, it will be hard to waive this limitation.
Business Ordinances
Your town will probably have some kind of statute or ordinance establishing policies for home businesses. These ordinances differ considerably but share certain elements. For instance, you aren’t permitted to conduct any business that would damage your street or building’s residential character.
An instance would be operating a business with dozens of clients going in and coming out of your rental. Generally, the number of workers allowed in a rental business is limited as well as the number of clients or customers allowed in an apartment business.
Permit Requisites and Business License
Whether or not you’ll require a business permit or license to run a business from your rental will vary depending on the county, state, or town in which you reside. The permit and licensing rules will also vary depending on the type of business you’ll be running.
For instance, the policies for operating an apartment-based catering business will vary from operating an internet service business. Ensure you confirm with state and local government offices for permit and license requirements in your residential area.
Parking and Advertising Restrictions
A number of local ordinances forbid advertising signage to sustain the neighborhood’s residential character. Numerous communities have parking limitations that seriously influence your capacity to run a business. Limitations on the type and amount of vehicular traffic could be a problem in residential areas.
Final Thoughts
While it can be tempting to start a business from your rental, beware of the legal consequences and rules before making any move.
For more information on how to run a business from your rented apartment, contact us at Apartment Agents or leave a message.