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Lnd
12-10-2011, 16:36 PM
Hi All,

I own a flat in London which I rent out to two friends. We have contracts in place etc and all is going well.

However, one of the guys runs an agency business from the flat. He doesn’t have anybody visit him, and effectively just uses his mobile/ Skype phone and the internet to conduct all of his business.

My Dad mentioned to me that there may be implications for me as the Landlord, with him running the business from my flat.

I don’t mind him running the business (aside from the fact that my front room is also his office!) but just want to make sure I don’t get any issues down the road. For example:

- If he goes bust and owes debts?;
- Taxable benefits/penalties for him, re Rent?
- If his business is registered to my flat?


Thanks in advance.
Lnd

oaktree
12-10-2011, 16:45 PM
Find out how the business is set up, i.e. sole trader, limited company etc.

If a limited company then make sure the registered address is NOT your property. If it is, you need to get him to register it somewhere else.

Sole trader is slightly different as the debt from a sole trading business is down to him as an individual not the company.

As it is a flat, there will most likely be restrictions in your lease regarding running a business from the property. This is the more important side of it as this is the one that could see your lease terminated.

If he registers everything at a different address then you're probably OK

Lnd
12-10-2011, 17:09 PM
Wow, thanks for the fast and concise response! I just hit refresh before I leave the office, but was expecting to have to check back tomorrow.

I will ask these questions. The Lease agreement is between myself and the guy downstairs (it is a terrace house split into two flats) and he is very relaxed about most things.

I *think* his business bank account and registered address is at his parent's house.

What should I look out for in the Lease agreement? It is actually a "shared freehold" agreement if that makes a difference...

Thanks!

oaktree
13-10-2011, 14:40 PM
I *think* his business bank account and registered address is at his parent's house.
If thats the case and he hasn't got customers etc coming to the property then I'd not be too bothered



What should I look out for in the Lease agreement? It is actually a "shared freehold" agreement if that makes a difference...
If running a business from the property is prohibted then thats what it will pretty much say, just look for something along thos lines