This story appears in the
November 2004 issue of
Entrepreneur.
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Q: I run a mail order business out
of my apartment. But my landlord is concerned that my business will
cause his real estate taxes to change from residential to
commercial, which are higher.
A: We've never seen a situation
in which property was reclassified because of a home office. Julie
Pfeiffer of the International Association of Assessing Officers says
each state has its own code for property assessment, but in some
states, municipal rulings differ from those of the state. She
advises talking to your local assessor.
"The question is whether a business use has an impact on
other tenants," says attorney Fred S. Steingold, co-author of
Leasing Space for Your Small Business.
"Zoning for property is governed by your local ordinance on
zoning, [which] often permits home offices." Search your state
code on the web and talk with the zoning office. But to reassure
your landlord, confirm your research with an opinion letter from a
real estate attorney.
Authors and career coaches Paul and Sarah Edwards' new
book is The Best Home Businesses for People 50+.
Send them questions at www.workingfromhome.com or in care of
Entrepreneur.