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Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 33803
Experience:  15 years real estate, Realtor. Landlord 26 years
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Can a commercial business sign a residential lease and run

Customer Question

Can a commercial business sign a residential lease and run their business out of the home? IT is not in an HOA.
Eric Miles
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Barrister replied 1 year ago.

Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.

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This would depend on the local zoning ordinances and whether a business can be operated in a residential area. In most areas, home businesses may be permitted, but full commercial ones are limited to areas that are zoned B-1 or Commercial to accommodate the higher traffic flows associated with business use.

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With that said, if the lease doesn't prevent any business usage and no one complains to the city about the business, then it is unlikely that they would become aware of it and force you to move it to a properly zoned area.

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thanks

Barrister

Customer: replied 1 year ago.
It is up to the landlord or is there any laws that prevent it? Two property management companies I have talked to will not allow me to sign as a business but are trying to make me personally sign it.
Customer: replied 1 year ago.
it meaning lease agreement
Expert:  Barrister replied 1 year ago.

As a general rule, if a landlord rents a residential property under a residential lease, then they may have a clause in the lease that prohibits commercial use. If they do, then it would be up to the landlord as to whether to enforce it or not and whether to consider any commercial use as a breach of the lease.

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The property management companies are trying to cover themselves liability-wise so they couldn't be held liable if the city came in and shut you down and they knew from the onset that you were intending on operating a business there. But from a purely legal perspective, a business could theoretically be renting a residential property for residential use only for someone so it might not be a good idea to mention that your plans are for commercial use if you are trying to rent a residential property not properly zoned..

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thanks

Barrister

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