New Thinking on Home Based Businesses

by admin on December 24, 2009

in Board of Directors, Documents

Home Based Business

Home Based Business

Due to new technologies, people now more than ever are working from home or now have home based businesses. In many cases these businesses may be in conflict with your association’s documents. The original intent of banning businesses located in an association was to prevent residents from running commercial enterprises that would create traffic, parking problems, noise, disrupt harmonious living and overtax existing common elements.

Technologically based home businesses that rely on the Internet, email, faxes and telephone communication is not or should not be a problem with most community associations. Banning all businesses being run from homes in a community association is unrealistic and today is considered an outdated concept.

When considering rewriting or creating rules for home businesses consider the following to help prevent unwanted situations:

• Prohibit any business that is inconsistent with the residential character of a community association.

• Prohibit any displays, signs or other written materials that advertises any home business.

• Prohibit any business for which the owner has not obtained any permits, licenses or necessary governmental approvals, if necessary.

• Prohibit any business that would increase traffic or parking.

• Do not allow any business that would burden the community’s common areas or that would increase any common expenses.

• Do not allow any business to store equipment outside the unit or on common grounds.

• Any business that requires on-site employees, other than family members who reside in the unit should not be allowed.

• Prohibit any business that would increase any costs to the association, as a result of the business, such as increased insurance premiums, maintenance costs or increases in utilities, etc.

• Require that owners submit an application to the association and receive written permission from the board before using their units for any nonresidential purpose. Do not allow tenants from operating any home business in your association.

The rules that govern home based businesses in community associations should be reasonable and should be consistent with the association’s declaration. Always have an attorney who specializes in community association law draft these rules for your association.

Comments on this entry are closed.