A client asked about the pros and cons of operating her business in a residential district.
What does the law say about running a business from your home in a non-commercially zoned residential area?
So many people now work from home because of the pandemic. If you are a day-trader, writer, or artist, the impact on the neighbourhood would be negligible. However, if the business is against the law (such as prostitution) or creates a noise nuisance (like an auto-body shop) the impact on the neighbours would be quite objectionable.
You must check the conditions in your title deed. It may contain a clause like: “this erf shall be used for residential purposes only and no trade or business or industry whatsoever shall be conducted thereon”.
If so, even If you are a writer working from home, this may be deemed to be a business that falls foul of that restrictive condition. However, it is highly unlikely that a neighbour would complain.
On the other hand, the court heard an application for an interdict where a construction company opened an administrative office in a suburban area manned from 8 AM to 4:30 PM on weekdays by a staff of four (with the occasional visitor). The judge ruled that “the use or continuation to use the property for any business or trade other than for residential purposes constitutes an illegal act” and granted the interdict, even though the office caused no nuisance to anyone in the neighbourhood.
To ensure that you can operate your business from a residential property, you must not only look at your title deed but also the zoning. As a home business operator, you must ensure that the use of the property is in line with the zoning regulations applicable to your property. A Town Planner can advise you if your home-based business complies with your Local Authority’s Municipal Planning By-Laws. Should the property not be zoned for your type of business, the Tow Planner may apply for a rezoning. The process is very longwinded and expensive.
Without your
local authority’s approval for a rezoning of the property, you will not be able
to lawfully conduct your business on the property. If you do, you may face a
High Court application for an interdict and fines from the local authority.
