Working from home has pitfalls
Do your homework before buying a property you plan to work in
THE need for flexible working hours, the increasingly informal style of many businesses and rapidly advancing technology have made it easier for people to work from home, either as part of a larger organisation or as a small enterprise, says Leon Breytenbach, national manager of the Rawson Property Group’s commercial division.
“With forethought and consideration, working from home can fulfil your office requirements while not causing dissension in the neighbourhood.”
In addition to the benefits, though, there are considerations to bear in mind.
● Affordability: When starting a new enterprise, especially a small one man show, one must minimise the outlay on non-essential expenses. And, as rents are costly and you might not be sure how long it will take your enterprise to become successful, Breytenbach advises turning the study, spare bedroom or property outbuildings into an office.
Working from home also allows hands-on parenting, while not having to commute to work each day reduces the monthly spend on transport.
A home-based office can also provide some tax advantages.
● The move will not always be problem-free: Anticipating potential problems will make it easier to deal with them if they materialise, he says.
The nature of your business could be a stumbling block. Do you need to make alterations to the property? Will that cause you to over-capitalise on your investment? Do you anticipate numerous cars coming and going, as with a hairdresser, beauty salon or children’s play-group? Will this extra traffic affect noise levels or available parking in the neighbourhood? How will your neighbours feel about disruptions in their peaceful suburb?
“Working from home will probably save you money but consider all aspects of the business and its impact on the neighbourhood before investing too much capital into starting up,” says Breytenbach. “To avoid unpleasantness, be sure you have sufficient parking spaces for clients and employees, be aware of the noise levels the business will generate, keep signage to an acceptable size and check on the legal ramifications which are associated with a homerun business.”
● Zoning: Many properties advertised as “work-from-home opportunities” might not be correctly zoned for a particular business use. Zoning can be a quagmire of different rulings for different cities and even for different suburbs.
“There is a move afoot to standardise and simplify zoning regulations but this has not yet happened.
“Residential agents selling workfrom-home properties may not be sufficiently informed regarding zoning regulations applicable to a home-run business to be able to properly advise a prospective buyer.
“Discovering, after purchasing a property, that it is not appropriately zoned for your purpose will cause annoyance and expense.”
Breytenbach says “single residential zone 1” properties allow very restricted business opportunities. While a B&B, small child-care facility or small home industry may be allowed, all carry limitations, as do any other enterprises that require special zoning.
“Rezoning can be costly and cause delays but can also significantly increase the value of a property. Applying for a temporary departure is a simpler option but is of limited duration and non-transferable, so it is not always the best solution.”
● Legalities: Businesses should be properly registered in whatever format is appropriate, be it as a sole proprietorship, close corporation (CC) or partnership, he adds. A business licence may also be required.
“Employees, if any, should be registered for PAYE and Workers Compensation. Facilities, space and parking should be adequate for employees and clientele using the premises.”
● Amicable relationships: Consent from your neighbours is important, so it would be wise to maintain a good relationship with them at all times and try to give as little cause for complaint as possible.