Working From Home When You Live in a Rental Property: Issues to Consider

In an era of remote roles, hybrid models and side hustles, what are the implications of working from home (WFH) in a rental property?

The world of work has changed dramatically in the past decade, thanks to technology. And one of the biggest shifts relates to where we work.

About 25% of Brits split their time between the office and home (this is called hybrid working), while 13% work exclusively from home*.

Then, of course, there are those who, inspired by platforms like Etsy and Vinted, make or resell goods from home on top of their ‘day job’.

Much of this activity has little impact on a tenancy. If a tenant is WFH on a laptop one or two days a week, or selling the odd piece of craft, there’s usually no issue. However, there are other situations where things can be more complicated, particularly where a tenant wants to run a business from their rental.

What does the law say?

Firstly, tenants should always get permission from the landlord to run a business from the property.

Under the law, landlords cannot ‘reasonably refuse’ a tenant’s request to run a business on site. However, there are grounds where a landlord can say no.

•  As a rental is a residential building, no more than 40% of the property can be used for commercial activity. So, using a rental home primarily as premises for a salon or retail outlet is not allowed.
•  If the business operation invalidates the landlord’s mortgage.
•  If the activity could cause excessive wear and tear on the property, for example, using chemicals or products that could stain the floor or using machinery that could cause damage.
•  If the business could cause disturbance or upset the neighbours by generating excessive noise, dust or traffic. Landlords should consider each case on its merits, understand the nature of the business, and discuss any potential     issues before deciding.

If a landlord allows a tenant to run a business on site, it’s important to consider the insurance implications (tenants may need to take out additional insurance to cover).

It’s also useful to discuss how the business would impact internet and energy costs.

If you’re a landlord looking for support in managing your rental property, contact us today.

*Source: Office for National Statistics