It’s a well-known fact that COVID-19 changed the way people work and operate on a global scale. Australians, including those living in Perth, had to adapt to working from home; however, one of the questions that still lingers among some people is if tenants are allowed to run a business from their rented property–the answer to this question is not as straightforward as one would expect.
For starters, the rules are rather vague depending on whether you own your house or are renting. In both these cases, the law states that you can legally run a business from Perth apartments for rent.
So whether you’re running your business from Perth or running a business from a rented house in NSW, read on to find out more.
Details to Keep in Mind
As mentioned above, anyone is allowed to run a business from a rented home in Perth, but there are certain rules and regulations that the business owner needs to comply with. You will need to register your business, apply for an ABN, and secure any relevant licenses and registrations needed to operate your business. Such moves may also affect your overall cost of living in Perth.
You will also need to get certain forms of insurance. Business insurance is a must regardless of whether you run your business from a rented property or one you own. Some of the other insurance policies you may need to purchase include:
- Public liability insurance
- Asset insurance
- Professional indemnity insurance
Nuances of Operating a Business From a Residential Property
While you are legally allowed to operate a business from a residential property, it is best to get written approval from your property manager, landlord, or local council before you begin your operations. This is especially true if you are considering some of the best places to stay in Perth.
You will also want to be prepared for any gray areas that might crop up. These could be issues such as insurance policies getting muddled because you do not own the premises but are now operating a business out of your rented home.
Remember that opening and operating a home business is different from working remotely from home–there are rules surrounding what protections you can enjoy and what tax deductions you are eligible for. It’s probably a good idea to discuss all pertinent matters with your tax accountant and other relevant parties.
Legal Parameters of Running a Business From a Rental
To determine if your type of business is allowed to be operating from a rented home, start by reviewing your tenancy agreement and the specific language used. Usually, tenancy agreements stipulate that the property will be used for residential purposes only. There might be some wiggle room in some cases, particularly if the business you are engaging in does not inconvenience other tenants.
One good example is a coder or freelance writer who wants to work from their rental apartment but doesn’t intend to see any customers in the space. Most landlords in Perth will be more than willing to agree to allow this type of business if there aren’t clients constantly going in and out of the property.
Final Thoughts
It is fair to say that many types of businesses can operate from a rented house in Perth; however, if there is a lot of client or customer traffic to the property, this will be a problem. In that case, your property manager or landlord may be less keen on allowing you to continue your operations there.
In addition, if you use any tools that could be considered hazardous, this could create an insurance issue and raise some red flags with the property owners. Therefore, determining if you can run your business from your rented space ultimately comes down to you, what type of business it is, and the person in charge of the space you’re renting.
