Our tenants are wanting to start a mobile food van business. Before the van is ready for use they want to prepare samples to take out to potential clients and will do this from the rental property. All food businesses have to register their address with the Local Authority. The tenant thinks they need to gain our written permission before doing this. Are they right? Once the van is ready food preparation will be done there. Thank you.
Question
During the Tenancy (England) | England | Periodic and Other Visits (England)
Registering a business at the property
Answer
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3 Comments
The first thing to decide is, if you’re happy with the proposed arrangement and if so you can give consent.
We don’t know if it’s a requirement to have written consent, as that will be down to the local authority rules for this type of business.
However, giving consent might be useful because the conditions of consent can strictly restrict the consent to only the preparing samples element and that once conducted, all future will be in the van (as they have said).
This will be known as a “home business” and assuming you have the relevant term in the agreement (if using our agreements you have this) you can give consent and, crucially, the tenancy will remain one as providing a home and won’t become a business tenancy.
Please see this page for information about a home business.
The consent doesn’t have to be in any particular form, and sent by email will be fine (if you regularly communicate with the tenant by email).
It should mention the words “home business” and outline the consent being given (very much like you’ve outlined this question).
We’ve just checked, and we don’t have a template at this time, but it’s on our list of new form ideas.
Thank you for your quick response. Unfortunately the contract wasn’t done through you – we used an agent to set up the tenancy and the propertymark contract simply says: ‘The Tenant agrees with the Landlord as follows: To use the Premises for the purpose of a private residence only in the occupation of the Tenant and not for business purposes.’ There is no mention of Home Business Tenancy.
I presume this does not prevent us from granting permission for a Home Business Tenancy but that we need to be careful we make it clear it is not a Business Tenancy. If we decide to grant permission may I send the draft for you to take a look at?
You could give consent but have in mind without the clauses mentioned in the article linked earlier, there won’t be that protection from the tenancy converting to a business tenancy.
Perhaps if it’s rolling as periodic now and all parties would be happy with a renewal, a new tenancy could be done with the terms and then consent given. We don’t normally recommend renewals and happy to leave as rolling periodic but this is a good example of an exception to the general rule.
That being said, we accept it’s unlikely to convert to a business tenancy in the given circumstances but it is an issue to be concerned about.
Happy to look at any draft – info@landlordsguild.com.