Hello,

We have a tenant trying to do an adult care at one of the rentals.

Just tell them no. You would have to have specialized commercial insurance and extra safety equipment, and there is a huge increase of liability. If anything happens to one of those customers, everybody can be sued. Not just the tenants and their business, but also the property owner, and that's you.

My insurance on my rentals has pretty good coverage, but it says no businesses can be run out of the buildings where any customers come to the location.

Define "adult daycare". Do you mean:

1) A licensed healthcare worker who will be seeing to the needs of one or more residents who are partly/fully disabled and cannot take care of their own needs, and who require round-the-clock monitoring of their health in addition to daily chores such as cooking, cleaning, and laundry, and this service is open to the public?

OR

2) A person who wants to provide limited services to a live-in relative. Basically, "moving mom or dad in with me so I can help out."

The first topic is going to be state-regulated and probably will require up-to-commercial standard renovations to be considered a licensed care facility. Not only insurance, but many costly upgrades will be required.

The second topic is just basically adding a roommate. Modify your lease as you would in any other scenario with someone moving in.

Adult Daycare is a business. You will need to talk to your insurance and ask them what what will be require to have. The daycare need to add you as "Additionally Insured" and give you a prove every year.

You can permit them to modify a place to comply with requirements, but first they must ask you for permission and use only licensed contractors.

Got a business lease for them to sign. If they will charge medical insurance, the insurance will check all requirements such as handicap assess, smoke detectors, bathroom size, etc... before they will get a permit.