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Be careful running a home business

17 Nov 2010

Thousands and thousands of people in South Africa run a business quietly and successfully from their homes and for most of them there is no reason to fear that they might be transgressing the bylaws of a particular council.

However, while the business might be a one-man-band that causes little or no disturbance, there are others that can be disruptive and a nuisance to other residents in the neighbourhood.

“This applies particularly to mothers who decide to start a playgroup at home and don’t get the necessary clearances from their neighbours or from the Department of Education,” says Lanice Steward, managing director of Anne Porter Knight Frank.

She warns that anyone who suspects that they might be transgressing the bylaws is advised to check with the council and to also consult with their neighbours and the relevant homeowners’ association as well.

It’s surprising what the neighbours will object to when a new business is being set up. For instance, there is the case of a Pretoria man who set up an insurance business from his home and employed eight brokers to work with him.

Cars were parked on the pavement outside his house and this disturbed a number of the residents in Erasmusrand and they eventually insisted that he must provide parking inside his own property for these vehicles.

There was another case where a woman started a playgroup in Cape Town but did not have the necessary permits and was forced to close down the group – even though it was actually a rather informal arrangement where mothers would even share the duty of looking after the five children in the group.

Steward says that in her experience the most problematic home businesses involve motor vehicles in one for or another – whether they are being sold from home or repaired for their owners.

“Any business that may disturb the neighbours is risky to have at home. Whether it is a catering business or a legal practice. The reality is that if there is any disturbance of the neighbourhood then the courts will probably rule that it must move,” she says.

To complicate matters, any business that is run from home is infringing the residential zoning regulations because the zoning laws state that business can be conducted in areas zoned for business and not in residential areas. In practice, though, most municipalities do not enforce these rules unless the business starts to interfere with the rights of neighbours.

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About the Author
Paddy Hartdegen

Paddy Hartdegen

Freelance columnist at property24.com.

Freelance columnist at property24.com.

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