Apartment Lease Restrictions

PDD

Hi Folks,

I am in the process of starting my own business and I had intended to use my home address as the registered business address however I have recently learned that lease for the apartment block restricts anyone from running a business from the premises. I am not renting but an apartment owner so the restriction comes under the same guise as no putting up satellite dishes, no pets etc.

I would be inclined to tell the management company to blow it out their arse but I'm unsure of the validity of the restrictions and what implications it might have on me and the business. I was wondering if anyone here has found themselves in a similar situation or with similar restrictions and if/how them managed to bypass it.

Regards,

Dave

Paulw

This is a complex one. While it's in the Lease Contract, like the satellite dish bit, it's very different.

There are insurance and other bigger issues with having a business in a home location.

You may find it is a lot of hassle to try to argue the point.

Let us know how it goes though.

athtrasna

Are you kidding me? You signed a lease and now you feel like telling the management company where to go or are looking for ways to "get around it"!!!!

Operating a business from your unit invalidates block insurance for your unit for starters (it's insured as a residential property). Then there's the issue of rates...oh and also you are breaching the planning permission for the development - that serious enough for you?? Not to mention the breach of your lease. So you're leaving yourself open to legal action from the management company, your mortgage lender (insurance is a requirement of all mortgages) as well as trouble from your local authority.

It's not something you can keep quiet either - our agents scan the companies register for our development name on a fairly regular basis.

One of my neighbours had to move their business when they encountered all of the above...would have been much cheaper to read the lease and abide by it in the first place.

PDD

@Athtrasna - No I'm not kidding, I am deadly serious - heaven forbid anyone starting a business should actively look at ways to minimize costs especially during start-up. With regard to the Lease Contract that leads into a whole load of issues I have with apartment 'ownership' and associated pathetic legislation we have for it in this country. The bottom floor is commercial units so Im assuming they would have to have these covered in the block insurance but not sure if it would be extended to the apartments or how this interacts with rates. As for planning permission the commercial units were in the original plans.

Thanks for the information with regard to the implications for running a business from the apartment and management company practices. Do you work in that industry or is there another reason this seems to have gotten your back up?

@PaulW - Cheers for the info, I think Athrasna's rant has provided an answer.

athtrasna

No I do not work in the industry, I own an apartment in a managed development and am amazed at how few people read what they signed at purchase...and how many then decide they have the right to bend/break the rules afterwards!

If there are commercial units on the ground floor, that does not mean there is planning permission for units above this to be used for business operation. Check the planning permission, most applications are very specific and will include the phrase "ground floor commercial units". Ditto the insurance.

Rates are a per business issue with the council calculating them based on the size and location of the units.

You have issues with apartment owning, well you did buy one! A house is yours to do with what you will, as an apartment owner you have rights and responsibilities, the basic one being to abide by the terms of your lease.

I know I'm ranting...and fair play to you for wanting to set up a business...but rules are rules. My neighbour rented an empty commercial unit at small cost and it's working out much better than the apartment ever did, the option of having a PO box is also there.

Victor

I don't think there is a problem with people working from home. There are problems if you are keeping things like combustibles in the apartment or are having lots of visitors or running a brothel.

If you need to hold stock, consider using one of those rent-a-lock-up places.

PDD

@Victor - Well the company is an IT consultancy company so its just a desk, computers and some paperwork which I guess is combustible :-) Working from home is a little different to having it as a registered business address and I think the activity itself is irrelevant. Athtrasna is right that the impact comes from a change in usage from residential premises to commercial premises and all of the associated legislation.

@Athrasna - I read all the documentation but it doesn't mean I have to agree with it :-) An apartment and a house are two separate kettles of fish and I myself didnt realise how much of a vast difference there was until I bought an apartment up to the point where now I would not recommend to anyone that they buy an apartment. I think alot of people are used to the context of a house and what you can or cannot do but then don't realise that an apartment is much more restrictive which can be frustrating esp if there are issues with the management company. Im sure the planning permission has "ground floor commercial units" in it but will check it out.

I bought an apartment coz I got it was too good a deal to turn down, I think as an apartment owner you have less rights and alot more responsabilities/constraints. As I mentioned before my personal opinion is that the legislation surrounding MDU's is appauling.

LOL Im all for abiding by the rules hence coming on here looking for information rather than going hell for leather. Look at what happened to your neighbour :-) I think for me it will have to be a PO Box and perhaps rent a desk or office share somewhere. Once again cheers for the feedback.

the_syco

PDD wrote: »

I think for me it will have to be a PO Box and perhaps rent a desk or office share somewhere. Once again cheers for the feedback.

I'd advise against "rent a desk" if it's a start-up, least some f**ker nicks your idea.

Now, I'm guessing you live in South Dublin, maybe around the Dublin 6 area?

Using http://www.daft.ie/commercial/ I found http://www.daft.ie/547641 for €215 a month. Is tiny, though. It also looks like someone like some glued a rent-a-box to the side of a building. Thus it may get cold in the winter...

For €346 http://www.daft.ie/540634 looks a lot better, more solid, but it depends on what you can afford.

Well, look at how big you want the office, and use daft to find it.

godtabh

PDD wrote: »

@Athrasna - I read all the documentation but it doesn't mean I have to agree with it :-)

If you signed it you agree with it

PDD

@kearnsr - Thanks for that informative and helpful reply.

@the_syco - Cheers for that info, I didn't realise rates had dropped so much but I guess its no surprise with the current climate. I think I will look into trying to get a desk in some sort of incubation centre or a virtual office and work alot from home. I doubt there's any way the management company could stop be from doing that seeing as its not the company's registered business address and I will never have clients on the premises.

Thoie

My lease has a similar condition, but talk to the management company about it. I'm an employee of a company, but have the ability to work from home sometimes. Having spoken to the management company there is no problem with me sitting at my computer at home and making a phone calls, but I couldn't have clients traipsing in and out. They admitted that part of the condition is to stop brothels opening up - presumably because all brothels register with the CRO

If you register as a sole trader I think you could use your home address to register - like if you were a plumber for example (but check that out properly, don't take my word for it). I can't see why an IT consultant would be much different.

If you can always arrange to meet clients at their offices, and I think most clients would prefer that, I don't think there'd be a big problem. Talk to your management company about it - explain that you work for yourself, and that you will get business post delivered to your apartment, but there's no public liability issues, as your job doesn't involve having clients visiting.

bernyh

Not sure if it would be allowed, but can you not "rent an address" like for companies based outside of Dublin they can rent an address in say D1 which all post is delivered to etc and you can get a Dublin tel no, it's basically a postbox in a city centre office, dunno if you can register a company to it but might be worth checking?????

PDD

Hi Folks,

Just a quick update on this, as suspected there was an issue with block coverage and use of the apartment to conduct business. The management agent was understanding and gave me more than ample time to look for a more permanant solution for the business's registered address. As it turns out I just got PO Box from An Post and I conduct all business from home while meet clients at their own offices or a convenient off-site location.

Regards,

Dave