The do’s and don’ts of home-based businesses and property
Thinking of running a business from home? Find out the key rules and pitfalls to consider before turning your side hustle into a full-time venture.
As more South Africans embrace entrepreneurship and flexible working arrangements, home-based businesses are becoming an increasingly popular avenue to generate income. However, REMAX Southern Africa cautions that running a business from a residential property comes with important legal, financial, and practical considerations that homeowners and aspiring entrepreneurs should be aware of.
DO check local zoning and municipal regulations
While many small-scale or micro-enterprises can usually operate at home without disruption, homeowners must ensure their activities comply with local zoning regulations. In most municipalities, these zoning regulations, governed by the Spatial Planning and Land Use Management Act (SPLUMA) of 2013, stop you from running a business from home, unless you’ve received special permission.
DON’T assume all businesses are automatically permitted in residential areas
Some business operations may fall outside what municipalities classify as acceptable home enterprises. In these cases, entrepreneurs may need to apply for special consent or rezoning to avoid legal complications down the line. However, if you do go the rezoning route, keep in mind that you will incur costs, such as rezoning fees, an increase in rates, and depending on the type of business activity and staff numbers, higher utility bills.
DO keep your business low-impact where possible
Micro-businesses such as consulting, tutoring, freelance work or online businesses are often easier to manage from home and can operate without a zoning change, provided they remain small-scale and neighbour-friendly.
DON’T forget the administrative essentials.
Beyond property compliance, entrepreneurs should also ensure they are properly registered for tax, have the necessary licences where applicable, and review their insurance policies to confirm adequate cover for business activities conducted from home.
We encourage business owners to plan carefully and seek professional guidance where needed to ensure their venture is both compliant and sustainable.
Issued by Kesia Abrahams
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