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I live in an apartment complex in California. Understandably, the lease has a "Use of Premises" clause declaring that the apt is to be used as a private residence. I have no problem with the clause, because this is, in fact, a residential apartment complex. My question is this: I run a home-based business. I am fully registered with the State of California as a reseller. I am fully licensed (Business License) in within my city as well. Now my city business license is up for renewal. Up until this time, I was living with my parents in a house within the same city limits. I have recently moved to this apartment complex (within the last 5 months). The City tells me that I need a signature from the landlord acknowledging that they know I run a business. Landlord won't sign, saying I'm violating the "Use of Premises" clause. I say I'm not, because it really IS my residence. Home-based business are legal, and the lease does not PROHIBIT home-based businesses. Is the landlord justified?
State/Country relating to Question: California Already Tried: Just came away from landlord's office earlier this afternoon. Landlord (actually, the property manager) said she would check with Corporate, but that she was uncomfortable with the idea of signing my municipal re-application and she expected that her final answer would be to refuse my request. I reminded her that I told her before I moved in that I had this business and she said at the time that it was fine. She replied, "Yeah, but we don't allow businesses in our apartment complex and even though we know our tenants do it, we don't ENFORCE it. But what you're asking me to sign ... I'm just not comfortable signing it." That's when I reread the lease agreement and saw the understandable "Use of Premises" clause, but I'm also emphasizing that there is nothing specifically prohibiting legal home-based businesses, as mine is. I comply with all state laws and all municipal laws.
Unfortunately, the Landlord is correct. The term "private residence" has not been found by the courts to include a home based business and an argument that because the lease specifically does not prohibit this will not work. If that were the case then the LL would be placed in the position of having to list every activity that is excluded in the apartment and the list would be endless. That is why the City requires the signed authorization from the LL -- otherwise tenants all over the city would be running all kinds of businesses from their apartments (legal, illegal, zoning violations, etc) and the LL could claim to the city "I didn't know about it". That way the City knows that the LL is aware of what is happening at the LL's property and cannot claim ignorance later -- as far as the city is concerned it is the LL's duty to adequately police what is going on in the buildings that they own. THis requirement is common in cities and towns across the USA. I am sorry that my answer could not be more hopeful to your position, but perhaps you can speak with the LL and agree not to store any stock in the apartment or have any clients or suppliers visit you if he will simply let you use the address (perhaps conduct some of the necessary activities at your parents house)? LL may be open to that suggestion. GOOD LUCK.
I will be happy to press the "Accept" button, regardless of whether you give me good news or bad news. The law's the law and the world does not revolve around me.
I want to make a question/comment first, though, and since I don't know whether pressing "Accept" will prevent me from later on making the question/comment I'll hold off on it. I want to emphasize to you that I *will* press the Accept button whether you are the bearer of good news or the bearer of bad news.
My home-based business is re-selling legitimate DVDs on eBay. I do have stock in ONE room in the apartment. I *NEVER* have customers coming over, and I do NOT have any signage whatsoever in, on, or near the apartment. Municipal regulations require as such, and I do comply. All I do is buy my DVDs from either of two suppliers and then sell them at a profit on eBay. I have complied with the city laws, with the State of California laws, and with federal laws. Home-based businesses are legal, so I don't understand why I am "violating" the lease. This IS my residence. I AM operating a legal home business. It's not my primary source of income but it is a quite active side income of mine.
I have paid my federal and state taxes on all my income and all I want to do is renew my license with the city. Does any of this information in this reply change your advice to me? I just want to pre-emptively rebut any notion that this is a type of business where customers are traipsing in throughout the day, or where employees are fielding phone calls and the like. It's none of that.
Does your original reply stick? I am prepared for the truth and I thank you for your work. I *WILL* pay for it (through the Accept button), regardless of your response to this current reply of mine.
Well, I thank you for that. I cannot tell you how many times I deliver bad news to people, and because they do not like what they hear, they do not press accept. It gets to the point where many of us do not like to deliver bad news and so those questions take longer to get answers when they are posted on the site. At least you read your lease before asking the question -- and asking for an interpretation of a provision is a legitimate legal question. I cannot tell you the number of people who have never even read the lease (or the contract, or the mortgage) and then they get all angry at me when I tell them that they must comply with that document they never bothered to read before signing! :) I am sorry, but the additional information does not change my opinion. While your business may be of no problem or concern, it is the LL's right to ban ANY business -- and he is afraid if he allows one, then he starts to go down a slippery slope where the interpretation gets broader and broader and then it is out of control and the city is on his case about something one of his tenants is doing. As an aside, the LL also has insurance policies and I am certain that the policies prohibit any kind of business activity on the premises, too. If it makes you fell any better, I ran into this problem personally -- my husband had a small snowplow business -- he simply used the phone at my apartment years ago. When he moved in, he was denied permission to use the address as his business address -- even though none of the snowplowing, the clients, etc had anything to do with the property. It was just phone calls! We then bought our own house -- and to register with the city we had to sign an affidavit that clients would not visit the house, etc., because of zoning concerns! Good Luck!
Lawyer
13 years experience in general law: RE, Consumer Prot., Family, Wills & Estates, Emplymnt, Crim Law
Do I have any kind of recourse against the property manager for VERBALLY OK'ing my business activity (with a wink and a smile) before I moved in? Her remark about "yeah, we know our tenants do it but we don't enforce it" really burns me because if she expressed an objection about my business before I moved in, then I wouldn't have moved in in the first place.
Yeah, I have a layman's understanding of the difference between verbal agreements and written agreements. But perhaps you can enlighten me from a legal standpoint about the enforceability of verbal agreements.
Either way, when my lease is up I'm sure as heck gonna be looking for a new place to live, business or no business. I'll pay my rent and keep a clean apartment, but they get no more money from me beyond what I'm obligated to. That's just me venting; this paragraph has nothing to do with my "case". I like your personal touch. We're humans.
I'm pressing the ACCEPT button now ...
Thanks much. Particularly for the "human" comment. There's a commercial for personal injury attorneys out for about the past year where a client states "they're not only lawyers, they're human beings". I nearly fell over when I heard that one. Oh Well.... A verbal agreement is about as good as the paper it is written on (that is an old law school saying). Unless you have some strong extrinsic evidence that a verbal contract existed (a witness or two, some emails alluding to your business but not necessarily her agreeing to the business, that sort of thing), then the verbal agreement will be hard to prove -- otherwise she will probably deny saying it. I bet some of this does go on there -- by people who do not register with the city and get away with it (so much for following the rules). If you make a verbal agreement of any type in the future, keep an eye out for things you can use later to prove that the agreement existed (confirm it in an email, etc). But, even if you were to show a verbal agreement with the property manager, he boss could come in and say that she was not permitted to do that. If the court found in your favor, your remedy would be to be permitted to break the lease without penalty and possibly moving fees, but they still would not have to let you run the business based on her word when higher management drafted the lease and there are insurance concerns. Hope that, er, helps? Have a good night.
Thank you.
This is going to sound crass, but was your most recent reply a professional response? If you say it is, I will be happy to press "Accept" and pay again. You know I'm good for it.
If it was a courtesy reply, then I thank you and I would appreciate saving money.
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Cheers XXXXX XXXXX Have a good night, Ms. Meaden.
-- Roger Navarro (eBay seller LITTLEHILLSUSA)