Using rental home for business

Our Experts Answer:

Where a tenant is using a part of a rental property for a home business, but is still using it primarily as a residence, then they may be within their rights under the Residential Tenancies Act. However, any business activities on the property must be lawful, and the tenant must continue to meet their responsibilities under the Act, such as ensuring they do not interfere with the reasonable peace, comfort and privacy of their neighbours.

Check with the local council to make sure that the use of the property for a particular business activity complies with local bylaws, council zoning and land use requirements. You should also check whether using the residential property for business purposes will affect your insurance. If you have any concerns about potential liability for the use of the property or professional negligence, speak to your insurer or get independent and expert legal advice.

When you have all the information, discuss the matter with the tenant. If you cannot resolve it, and the tenant is in breach of their obligations, there are steps you can take. To learn more, go to https://tenancy.govt.nz/disputes/breaches-of-the-residential-tenancies-act/. For more on the rights and responsibilities of landlords and tenants, visit our website or subscribe to our e-newsletter Landlord News.