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Controlling Business Use of Residences
With the growing prevalence of telecommuting and the Internet, many associations, which may have completely banned all business use of units in the past, are being forced to rethink that philosophy. Often, it is a good idea to adopt rules that allow for certain business uses, while at the same time avoiding the behaviors and ill-effects you want to avoid.
In drafting a rule dealing with home businesses, consider the following guidelines:
- Prohibit businesses that are inconsistent with the residential character of the community
- Prohibit businesses for which the owner has not obtained any necessary governmental approvals
- Do not allow businesses that would put an undue burden on the community’s common areas or that would increase common expenses
- Ban businesses that create any interference that would be noticeable by neighbors
- Prohibit displays or signs advertising home businesses
- Prohibit businesses that would significantly increase traffic or parking needs
- Do not allow businesses to store equipment outside the unit or on common areas
- Ban any business that requires on-site employees, other than family members who reside in the unit
- Prohibit businesses that involve the use, storage or disposal of any hazardous materials
- Require that the primary use of the home be residential and that the business use is merely secondary
- Give the association the right to recover any increased costs to the association as a result of the home business, such as increased insurance premiums
- Require that owners submit an application and receive written approval from the board before using their units for any nonresidential purpose
As always, whenever drafting any rule, consider what the association desires to accomplish and do it in the least restrictive manner. In addition, the rule must be reasonable and be consistent with the declaration for the community.
[PRINTER FRIENDLY VERSION]
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Community Associations Institute
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The Community Associations Institute (CAI) is a nonprofit organization that provides education and resources to community associations. To find out more about CAI visit www.caionline.org
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