Anyone Providing Child Care from a Rental Home in CA?

[Margarete]

Also this statement he made is possibly illegal "The property is not safe for children" Federal law prohibits housing discrimination based on if children will live/ occupy the property. They can only have a limit on number of occupants who live at the property, not the age of occupants (or on age of possible visitors to the property)

Fair Housing Act
Title VIII of the Civil Rights Act of 1968 (Fair Housing Act), as amended, prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents of legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability).

[Margarete]

You misrepresented yourself by saying you were going to work at [my wife's current place]."

Is this something that they can use? Are you working there now, or going to work there while your wife starts doing day care in the home? I would suggest starting there soon at least for a little while (if possible) that way they can't use this to justify their illegal discrimination.

No where in rental or home loan situations do they require you to continue the job you are currently in, as long as you can continue to pay the mortgage/ rent It shouldn't matter, (unless you are using the property to conduct illegal business).

[Sergio]

I always worked and will continue to work at a different place than my wife. I hope the "you" in that sentence refers to my wife (she wrote the initial notification), although our landlords have been clueless so far, so who knows?

[Margarete]

ah okay didn't know who the "you" was referring to. Sounds like then you are fine in that regard as that *is* where she works... No where did you guarantee that she would continue to work at her current job for any length of time (and there is no way you could)

[Sergio]

and there is no way you could

Exactly.

[Blackcat31]

Alright, things are getting interesting now. We got the following reply from our Property Manager:

"My clients is furious about the new intent use his property. He is especially disappointed with the fact that you tricked us to sign a 3 years lease when you had the knowledge that you wanted to do a day care. If you are getting paid, then you are operating a business.

He has retained the service of an attorney and he is going to do everything in his power to stop the day care. The property is not safe for children. Even with release of liability, the landlord can be sued and so am I since I am managing the property.

You misrepresented yourself by saying you were going to work at [my wife's current place]."

I arranged a personal meeting, because I sincerely don't want any trouble.

I am not understanding how "they" think you tricked them?

You aren't required to inform them of future plans until those plans become a reality. Otherwise they are nothing more than plans.

[Sergio]

I know, right?
I keep calm by reminding myself that it is their choice of words, and people are free to choose their words in our great country.
Honestly though, if their response isn't an example of utter cluelessness, I don't know what is.

[Blackcat31]

I know, right?
I keep calm by reminding myself that it is their choice of words, and people are free to choose their words in our great country.
Honestly though, if their response isn't an example of utter cluelessness, I don't know what is.

Well, its a good thing they put it in writing then.

[Margarete]

They (the owner and property manager) are obviously unaware of the laws. Using words like "he is going to do everything in his power to stop the day care" make it where if they try to use a different reason, it's pretty easy to point to the real reason if it comes down to a legal fight.
With a signed 3 year lease, and that last statement in writing (yes?) You have a lot going for you if you want to push this.
It really bothers me that people get away with illegal discrimination like this (and the unregistered story too).

[Margarete]

I would ask the property manager what his response would be if the property owner said that about someone who is black, gay or (insert religious group here) living in the property? ... or children (which he did) It is all illegal discrimination.

[Sergio]

Great idea, Margarete! Let me see how this sounds:

"My clients is furious about the new intent use his property. He is especially disappointed with the fact that you tricked us to sign a 3 years lease when you had the knowledge that you want to convert to Buddhism.

He has retained the service of an attorney and he is going to do everything in his power to stop your conversion to Buddhism. The property is not safe for Buddhists. Even with release of liability, the landlord can be sued and so am I since I am managing the property.

You misrepresented yourself by saying you were going to work at [my wife's current place]."

LOL, too easy...

[Sergio]

But yes, to elaborate on the "cluelessness", I decided to deconstruct their message. Like so:

#1. My clients is furious about the new intent use his property.

- What exactly is the new intent?

#2. He is especially disappointed with the fact that you tricked us

- How exactly did we trick you?

#3. when you had the knowledge that you wanted to do a day care

- There are many things that my wife knows, and you aren't allowed to ask about.

#4. If you are getting paid, then you are operating a business.

- That's just false. Although personally, I understand why this assumption is being made.

#5. He has retained the service of an attorney and he is going to do everything in his power to stop the day care.

- It's illegal for you to stop the day care at your home.

#6. The property is not safe for children.

- You're telling us now? After we told you that my wife is pregnant, and we want to start a family?

#7. Even with release of liability, the landlord can be sued and so am I since I am managing the property.

- True. You can be sued for any reason that would have nothing to do with us.

#8. You misrepresented yourself by saying you were going to work at [my wife's current place].

- No, my wife is currently working at the place she mentioned.

[Margarete]

Family child care may be a business, but California considers it "residential use" . There is no change in use (or intended change of use) of the property.

[Sergio]

Family child care may be a business, but California considers it "residential use" . There is no change in use (or intended change of use) of the property.

You seem to know a lot about our issue happyface.
There is one set of questions on my mind that I couldn't find a satisfactory answer to.

Can a small family child care in a California rental home be registered as an LLC?
If not, can my wife's income be taxed as business income (i.e. can the rent etc. be deducted from personal income taxes)?

[Thriftylady]

You seem to know a lot about our issue happyface.
There is one set of questions on my mind that I couldn't find a satisfactory answer to.

Can a small family child care in a California rental home be registered as an LLC?
If not, can my wife's income be taxed as business income (i.e. can the rent etc. be deducted from personal income taxes)?

I can tell you what I do, but you need to post this in the taxes section so our expert can answer. You have self employment forms to fill out. You can deduct your expenses on a time percentage. That lowers the taxes. The percentage is how much square footage do you have, how much of that is used for daycare, how many hours per year is it used for daycare. This percentage is used against rent/house payment, utilities, etc. Then there are expenses that are deductible at 100% if they are used ONLY for daycare. I have always done my own taxes, even with hubby being a truck driver (another complication), but I have a little accounting background. I am NOT a tax accountant in any way. Your wife's "income" will be lowered somewhat by the "expenses". I don't understand a ton about LLC, but then your wife would take a paycheck and the business would pay payroll taxes, like any other employer in my understanding so withholding each pay period and such would have to take place.