Operating a Home-Based Business from Your Condo or Co-Op

Condominium or co-op residents thinking of starting a home-based business should review the rules and regulations of the condominium association prior to operating a business out of their unit. All multi-family housing units, such as a condominium or a co-op, have rules and regulations that restrict activities within a building. These rules and regulations are most commonly referred to as “bylaws” and they may not allow you to operate certain types of businesses inside a unit.

In addition to reading your condo bylaws, you also need to be aware of any city ordinances where you live regarding the types of businesses that must be housed in commercial or industrial zoning areas. Even if the condo association’s bylaws permit the operation of a home-based business, city ordinances may restrict certain types of businesses from operating in a multi-family housing unit. Most often, home-based businesses involving the preparation of edible items are not permitted in multi-family housing units due to food health and safety sanitation requirements or fire code limitations. For example, if you wish to start a catering business out of your unit and the bylaws permit such a business, the city’s health department may not allow it or may require you to obtain a permit, which will most likely involve regular inspection of your unit by the health inspector. If you fail to follow any bylaws or ordinances, you could lose your business and face fines.

Generally, home-based businesses will be permitted as long as they are not disruptive or unsanitary in nature, but some bylaws may ban any and all types of home-based businesses. Courts almost always side with condo association bylaws when a dispute arises so it is extremely important to review the bylaws. If the bylaws are unclear or the business you want to start is not specifically listed in the bylaws, you can always consult the condo association.

Case Studies: Operating a Home-Based Business From Your Condo or Co-Op

Case Study 1: Jane’s Jewelry Workshop

Jane, a resident of a condominium, decided to start a small jewelry-making business from her unit. She reviewed the condo association’s bylaws and found no specific restrictions on home-based businesses. However, she discovered that the city ordinances required businesses involving the preparation of edible items to be housed in commercial or industrial zoning areas. Since Jane’s business didn’t involve food preparation, she proceeded with her jewelry workshop without any issues.

Case Study 2: Mark’s Catering Business

Mark, another condo resident, planned to start a catering business from his unit. The condo association’s bylaws allowed home-based businesses, including catering, but the city’s health department imposed strict regulations and inspections for food-related businesses. Mark had to obtain a permit and regularly pass health inspections to comply with the city’s requirements. He successfully navigated the process and operated his catering business without any violations.

Case Study 3: Sarah’s Photography Studio

Sarah, a co-op resident, wanted to establish a photography studio in her unit. Unfortunately, the co-op’s bylaws prohibited any type of home-based business. Sarah realized that pursuing her photography business within the co-op was not feasible. She consulted the co-op association to explore possible solutions or exceptions, but they upheld the existing bylaws. Sarah had to seek alternative locations outside of the co-op to establish her photography studio.