Working from Home in Rented Property: Your Rights

In the USA, working from home is becoming increasingly common. In fact, a lot of people are turning to work from home jobs because they offer flexible hours and a more stable work-life balance. But what about those who work from their rented homes? Can you work from your rented property in the USA? You may be wondering if this is even possible or not, but it’s actually completely legal! However, there are certain stipulations – let’s have a look at these.

Can You Work From Home In A Rented Property?

The answer to this question is yes – you can work from home in a rented property. However, there are a few conditions of which you should be aware. For example, your landlord may not want you to set up an office in their rental home. They may also ask that you keep the noise down and avoid using any extra electricity.

It’s also important to remember that work from homework is not the same as work you do while living in your rented property. For example, if you make money by selling products on Etsy or eBay, this will count as work done remotely. However, if you work for a company and they pay your salary regularly through direct deposit into your bank account, this work will be considered to be done at your place of work.

Another way to look at this is to recognize that whilst you may indeed work from home in a rented property, you may not be able to do ALL your work from that location. 

If you are a software developer and everything is done from your desk, then by all means you can do your entire job from home and this type of arrangement would likely encounter very little resistance from your landlord. 

If however, you are an automobile salesperson and you have turned your kitchen into a showroom waiting area then this is going too far.

Obviously, this is an extreme example but it is a good one to keep in mind when considering if your job is the type of job that is suited to a work from home setup. 

Would it be appropriate for you to invite clients to your home for meetings? Not really right? In that respect, you may want to consider what parts of your job you can accomplish from home and perform the other functions in a proper corporate environment.  

If you’re not sure whether or not your work-from-home job is legal, it’s best to check with an attorney. They can help you figure out what the law says about working remotely and whether or not you need any specific permits to do so.

What Are Some Typical Occupations That Should Be Allowed to Work From Home?

Numerous occupations fit nicely into the work from home model and your landlord should have no issue with you performing the types of duties these roles require from your home office space.

  • Accountant / Bookkeeper
  • Copywriter
  • Administrative assistant
  • Customer service rep
  • IT Assistant
  • Web designer
  • Computer programmer
  • Salesperson
  • Real estate agent
  • Photographer
  • Freelance writer
  • Blogger
  • Consultant
  • Translator and Interpreter

It’s important to remember that this list is not exhaustive – if your work from home job is not on the list, it doesn’t mean that you can’t do it. It just means that you should check with an attorney to make sure everything is in order.

To see a more comprehensive list of work from home roles see this article:

What Work From Home Jobs Are There?

 

What Are The Common Issues That You Should Anticipate?

The issues that your landlord may raise are:

  • The use of extra electricity / facilities
  • Noise levels
  • Having people coming and going from your property
  • Using the home primarily for business purposes rather than residential

If you can work out an agreement with your landlord that covers all of these bases, then there should be no problem in you continuing to work from home in your rented space.

Can You Use a Home Office For Your Own Business?

Yes, you can use a home office for your business. However, there are a few things you should keep in mind:

  • Your landlord may not want you to set up an office in their rental home. They may also ask that you keep the noise down and avoid using any extra electricity.
  • You cannot use your home as an official place of business if you are not registered with your state.
  • You should always consult an attorney to make sure that you are in compliance with all the laws and regulations that govern home businesses.

If you’re thinking of starting a home business, it’s important to do your research first. There are a lot of things to consider, and getting expert legal advice is the best way to make sure you’re on the right track.

Working from home can be a great option, but it’s important to know your rights and obey the law. If you have any questions, don’t hesitate to contact an attorney. They’ll be happy to help!

Does It Conflict With The Mortgage Agreement?

Consider whether or not your work-from-home job conflicts with the landlord’s mortgage agreement. For example, if you’re working from home in a rented property, are you still considered to be living there? This is an important question to ask because it can determine whether or not you’re violating any terms of your lease agreement. A good rule of thumb to consider is whether more than 40% of the primary activity being done on-site is work.

Are You Sharing The Property With Other Tenants? 

This is an important question to ask because work from homework can be more difficult when you’re sharing the property with other tenants. If there are multiple tenants living in the unit, then it’s likely that your landlord will want all activity on site to be residential, particularly if you’re work will encroach on communal spaces. 

If you share an electricity bill but your housemates are out of the property all day while you have a PC, two monitors, a desk lamp, and the AC unit all on full blast, then you’re probably not going to be the favorite person in the house. 

Will You Be Causing A Nuisance To The Neighbors?

“Tom, there are seven sedans parked in the driveway, are you sure you are not running a car sales business?”

You’ll need to consider whether or not you’ll be causing a nuisance to your neighbors. This could potentially include excess noise, using too much electricity, or having clients visit your home frequently. If you think that your work-from-home job may cause problems for those living around you, it’s best to speak with your landlord and work out a plan that will make everyone happy.

What Hours Will You Be Working?

Another thing you’ll need to work out is whether or not your work-from-home job will be done during normal business hours. This can make a big difference when it comes to how much noise and disruption you’re causing, as well as taking into consideration that the neighbors/housemates may have shifts that conflict with your work schedule. Be mindful of others and discuss your plans in advance.

Is The Business Owned By You Or Are You An Employee? 

An important question to ask is whether or not the work-from-home job you’re doing will be your own company that you’ve created, or if it’s a work-from-home contract for an existing business. If you are doing some freelance work in a self-employed capacity then this may be fine however, if you are running a large-scale operation from your rented property, then this may not be permissible.

Keep this simple trick in mind to help you understand the difference. If you were asked to fill out the address of the headquarters of your business what would you put? If your business needs a headquarters then perhaps you need a proper office. In this case, your home address, or rather the address of your landlord’s property will not suffice.

Can My Landlord Charge Me Extra For Working From Home?

Your landlord may charge you more for work from home. This can include higher rent if they wish to use the property as a commercial space, or asking you to pay extra fees such as electricity usage and internet services. There is no hard and fast rule when it comes to this and it should be discussed in detail with your landlord.

Can I Change The Layout Of The Property To Accommodate Working From Home?

If you work from home, then your landlord may allow you to make minor changes to the property such as adding a work desk or other office equipment. Try not making any permanent structural alterations that could become an issue later on when moving out of the unit.

Can I Have A Roommate Or Housemate Who Works From Home?

If you work from home and your landlord allows it, then this is a great opportunity for you to get some company as well. Just make sure that the person who moves in with you also works from home. It may be easier to convince the landlord to allow you to work from home if all tenants will be partaking. 

If you work from home, it’s important to be aware of your rights as a tenant. Speak with your landlord if you have any questions or concerns and always be respectful of those who live around you.

To learn more about your rights as a tenant in the USA – see the US Government Information on Tenant Rights by State.

How Can I Convince My Landlord To Allow Me To Work From Home?

If you’ve spoken with your landlord and they are not comfortable with the idea of work from home, there are a few things you can do to try and change their mind.

  • Offer to sign a longer lease agreement that will lock in the increased rent for a set period of time. This demonstrates that you’re willing to invest in the property and work with the landlord on a long-term basis. 
  • Offer to pay an extra month or two of rent at the beginning of your lease agreement, as compensation for any potential damage that may occur during your tenancy  due to work from home activities – Provide written documentation regarding how you will be working (for example: limited hours, not using communal spaces, etc.)
  • If your work from home job is self-employed, provide evidence of this (such as business registration documents or a letter from your accountant)

Ultimately, it’s up to the landlord to decide whether or not they are comfortable with you working from home on their property. With a bit of negotiation and some persuasive evidence, hopefully they will be more inclined to let you work in the comfort of your own home.

Do I Need Extra Specific Insurance Cover?

It’s important that work from home jobs are covered by an appropriate insurance policy. This will protect you and others involved in the business should anything go wrong or if someone is injured after visiting your work premises (such as a client). 

In addition to work-related incidents, it’s also worth considering taking out additional cover for other potential problems, such as work from home business interruption cover. This type of insurance will help to provide you with some financial relief if, for example, a burst pipe renders your work premises unusable and disrupts your workflow. 

Is The Landlord Legally Insured?

It’s also important to check that the landlord of the property you’re renting is insured for work from home activities. If not, and an incident occurs, you may be held liable. Ask your landlord to provide proof of insurance before starting your work-from-home arrangement.

Working from home can be a great way to avoid expensive office space, and with a little bit of planning and negotiation, your landlord may be happy to let you work from home on their property.

A Notice For Landlords

If a tenant approaches you and requests that you consider allowing them to start using the property as their work from home space, you should definitely consider the request seriously. This is fast becoming the norm in today’s market and if you outright reject the application then you may be undercutting yourself. Be up front and open with your tenant about any concerns you may have.

Ensure that they do not intend to run any operation that would involve visitors to the premises as this causes all sorts of extra headaches with insurance etc.

Make sure you feel comfortable with the type of work they will be doing. If they work in IT and will spend their time at their desk, then there should be no issue.

Contact your attorney and have them draft a lease agreement that will add sections for liability and additional use purposes.

Consider this as a business opportunity rather than a limitation.

 

Related Articles:

What Work From Home Jobs Are There?