Check governing documents and talk with board for go-ahead.
Q Recently I left my job and have decided to start my own business. Am I permitted to operate a business out of my condominium unit?
A Limitations on how you can use your condominium unit are usually spelled out in the use restrictions section of your condominium declaration, an important governing document of your community.
Generally speaking, condominium units are residential units to be used for residential purposes only. This means that no trade or business of any kind may be conducted in or from your condominium unit or any part of the condominium.
However, some condominium declarations will provide for exceptions for conduct of ancillary business activities under certain circumstances. Often, unit owners are permitted to conduct business from their units under the following circumstances:
> The existence or operation of the business activity is not apparent or detectible by sight, sound or smell from the exterior of the unit.
> The business activity does not involve visitation by employees, clients, customers, suppliers or other business invitees who do not reside in the condominium.
> The business activity is legal and conforms to all zoning requirements for the condominium.
> The business activity does not unreasonably increase vehicular traffic in the condominium.
> The business activity does not increase the insurance premium paid by the condominium association or otherwise negatively affect the association's ability to obtain insurance coverage.
> The business activity does not place an undue burden on the infrastructure of the buildings of the condominium property.
> The business activity is consistent with the residential character of the condominium and does not constitute a nuisance or a hazardous or offensive use, or threaten the security or safety of other residents of the condominium, as may be determined by the sole discretion of the board of directors.
> The business activity does not result in a materially greater use of the common areas or association services.
It is important to remember that condominiums are generally created with the intention of such being used for residential purposes. However, today's technology has made it much easier to run a business from home, and many businesses are now home-based.
In addition, the existence of amenities such as office facilities is often one of the motivating factors in the purchase of a condominium unit. A buyer may purchase a condominium unit thinking he can operate a business from it, but due to the nature of the business he cannot. Of course, circumstances that govern a business are covered in the governing documents of your community.
You should also speak with the board of directors about the business you plan to run from your unit because, often, while unit owners may think that their home businesses meet the limitations prescribed in the governing documents, their neighbors and/or the board of directors of the association in the community may not. Remember to comply with local ordinances, including any licensing laws.
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