NYC Running A Business From Your Apartment

I want to operate a private nail design salon out of my apartment, but my lease says no business purposes allowed. I won’t have signs out front, so I should be okay….right?

The lease includes this clause in order to prevent two activities from taking place in residential buildings; commercial enterprises and manufacturing. However, to attribute these limitations to your landlord’s lack of support of your capitalistic ambitions is a mistake. Zoning restrictions imposed on landlords prevent commercial or manufacturing in all residential buildings unless a zoning “easement” or special zoning area has been created. This allows some lower floors to house commercial units in residential buildings, but prevents commercial activities in upper units. The manufacturing restrictions are designed to insure the safety of the general public by keeping chemical, explosive, or flammable materials out of residential areas. The restriction also helps to curb noise and smell issues.

Your landlord will also have to adhere to insurance requirements. Commercial and manufacturing enterprises have higher instances of claims. Since landlords are legally required to maintain insurance over the building, they will have to adhere to the insurance requirements in order to stay in legal compliance.

Aside from keeping the City and the insurance company happy, your landlord will have tenant issues in mind. Tenants have a right to expect a degree of safety and the “right to quiet enjoyment” of the property. Operating a commercial enterprise from your apartment will mean that there is increased activity in the hallways which means increased noise. It will also mean that with an increase in traffic in and out of the building, the entryway will be less secure, and tenants will be put at a greater risk of crime and property damage.

It is a very bad idea to attempt to run a nail salon out of your apartment. The increase in foot traffic and the smell of the nail chemicals will definitely cause your neighbors to complain. Without the proper ventilation systems in place, the Department of Health and Safety will certainly be “interested” in your activities and these sorts of lease violations can result in very prompt evictions. It is a much better idea to lease a small space from a salon in a zoned commercial area and operate within the law.

originally posted July 27, 2007