Tips for renting out residential space commercially

Is the commercial use of residential space permitted?

Most state and federal governments try to promote companies as much as possible. So basically there is nothing to stop you converting your home into a workplace. However, there are some conditions to be met. In the UK, for example, you only need permission from the relevant planning authority for necessary structural alterations, outdoor advertising or increased delivery volumes. If a large part of the property is to be used for commercial purposes, trade tax is also payable.

In Germany, on the other hand, residential space may only be converted into commercial space with the corresponding state building permit. With a few exceptions, standardized rules apply throughout the country in this regard. One such special case is Berlin, where a ban on the misappropriation of residential space came into force a few years ago. It is therefore essential to check with the relevant authorities before renting out your apartment as an office.

How does living space become a workplace?

The following aspects play an important role in the commercial use of an apartment:

• Occupational safety

• Accessibility

• Sanitary facilities

• Technical equipment

• Noise protection

The legal situation with regard to occupational safety and accessibility is particularly complex and varies from location to location. In principle, your property should be fire-resistant and have a sufficient number of clearly marked emergency exits, fire extinguishers and first aid kits. In many countries, including Germany, companies are also obliged to provide disabled access. However, some places, such as France, have less strict rules in this regard. You should therefore check the local regulations.

Your future tenants will also expect suitable bathrooms, a kitchen area and their own telephone and internet connection. If your property is mixed-use, we recommend consulting with your utility service provider. Ask for separate billing for the commercial and private units.

Also consider the issue of “noise protection”. In Germany, this point is already relevant in the planning phase. The general lower action value specified in the Occupational Health and Safety Ordinance is 80dB(A). However, it is unlikely to be exceeded in offices. In Spain and the UK, on the other hand, the permissible sound pressure levels depend on the location, the time of day and the activities to be carried out. If there is a risk of noise pollution, we recommend sound insulation. To do this, lay soundproof carpets and runners on the upper floors. Sound-insulating doors or curtains are also suitable as uncomplicated noise protection measures.

Mixed-use or commercial property?

Whether you want to use your apartment entirely for commercial purposes or convert it into a mixed-use property depends on your tenants' wishes. Co-working spaces and flexible office solutions are very popular with freelancers and companies alike. This is also reflected in the demand for corresponding office space.

In this market landscape, you can reach far more interested parties with short-term rentals of individual offices or even apartments with integrated workstations. Especially if you offer your property on P2P platforms such as deskcamping.com . However, if you prefer to completely convert the property into a commercial property and thus rent it out to a larger company in the long term, this would result in greater financial security.

No matter which option you choose: If things don't work out right away, simply make a second attempt. Stick to your decision to use your home for commercial purposes and simply consider where there is room for improvement. You can find tips and suggestions for the interior design of offices and workrooms on our blog.