Child Care Business in Residential Rental Unit

Post date: Jul 25, 2016 8:24:51 PM

In California, family child care is considered a residential, not a business, use of a property [CA Health and Safety Code §1597.45]. CA law allows a licensed small family care provider to care for up to 6 children and a large family care provider to care for up to 12. The tenant is required to give you notice, generally 30 days in advance of the intended operation, but does not need your permission. Furthermore, a landlord cannot evict a tenant for operating a licensed child care program.

However, CA Health and Safety Code section 1597.40 (d)(4) allows a landlord to increase the security deposit on a unit being used for a child care program to the maximum allowed under state law, which is twice the monthly rent for an unfurnished apartment. 

If you are concerned about liability, CA Health and Safety Code section 1597.531 requires each licensed provider to obtain liability insurance or a bond, or to obtain an affidavit from each parent stating that he/she has been informed that the property owner's insurance may not cover losses in connection with the day care operation, unless those losses are caused by, or result from, an action or omission by the owner. If the day care provider has insurance, you may request, in writing, to be added as an additional, named insured on the policy, as long as it does not result in cancellation of the policy and you pay any additional premium.