New tenants with existing business

Landlord Discussion
1

Clause 9.27 of the contract I created yesterday seems to prohibit tenants with businesses of their own?

9.27. Not to register a business at the Premises, and not to carry on or permit to be carried on at the Premises any trade or business other than a home business as defined by section 43ZA of the Landlord and Tenant Act 1954.

I’ve just found a lovely couple who have their own cleaning business and have a registered company. Clearly when they move to my property, they will need to update their business address to my property. Their “business” or “work” obviously happens at their client’s premises, not at home.

Their financials check out, their previous landlord has given a glowing reference and they are really sensible people that any landlord would want to have.

  1. In general, what is the implication of having a using rented premises as a business address? Does it impact areas like home insurance, Council Tax, etc.?
  2. Specifically in relation to the OpenRent contract, can this clause be dropped or modified, or does it become invalid in law if changed?
2

In my experience theres usually no impact of having a business registered at your property, but there is usually no requirement for them to register it ghere. They could have a virtual registered address or use their accountants address for example.

3

If you do let to them and they do register it at your house, you should inform your insurance company. If you explain the situation, it’s unlikely to affect your premium but not informing them could invalidate any claim you might make.