State Specific Question About: WASHINGTON (WA)

I have a prospect tenant who would like to continue her daycare business in my rental home. She is a state licensed caregiver, and has bought insurance for her daycare business. She can accept a maximum of 6 children. What do I need to know in terms of insurance on my side. Any other things I have to worry besides insurance?

No.

You will be accepting the liability of all the children, helpers, and parents. If they trip on your steps, guess who will be sued.

Your insurance provider may not allow it.

Residential houses are built for families, not full bore wear EVERY day. Your house will wear out faster.

Traffic and parking issues with neighbors.

Strangers. You will hopefully screen your applicant but you cannot screen the others who work there, etc.

We recently had a tenant threaten a lawsuit because the doctor COMMENTED the boy's bad behavior could be a result of lead exposure. The health dept immediately tested MY rental and the boy's daycare.

Doesn't licensing also include some government person inspecting the home?

Think of the nature of this business. 6 to 8 cars dropping off/picking up kids every morning and every evening, spilling/dropping food/drink, tripping, getting hurt, lawsuit happy parents, a full house being beat up "every day." Not to mention a host of other liabilities.

No way would I allow someone to have a business in my rental. It is noisy and there will be large play equipment in your yard.

The neighbors will hate you and will pick on absolutely everything they can think of. Think of screaming mothers, screaming kids, insurance liability.

If a kid gets hurt lawyers will go after the person with the deep pockets. That's you. Even if they could not make it stick, think of years of fear and court appearances. It could ruin your life.

NO NO NO! No matter how much insurance SHE has, it will be YOU that the grieving parents will sue! And YOUR insurance company will cancell you as soon as they find out you knowingly aloowed it! NO NO NO!

In California we can't say no to child care. There are ways to get around it of course:)

When I was a renter I did Licensed. Child Care in the rental property.

I added my LL as additional insured and carried the max insurance.

The home was inspected by the licensing agency. this was in the 80's.

NOW would I allow child care in my rentals? NO WAY!!! I am having enough trouble finding a responsible person to rent it let alone run a very litigious operation in it.

But if you are going to do it. Find out about your insurance coverage, check why she is REALLY moving, talk with her current neighbors if possible to see it the business was a nuisance (too many cars, noise, etc.)and then charge her higher rent to cover your extra wear & tear, higher insurance premium and of course your share of partnership (you are providing the property).