When Family Child Care Providers May Have to Pay More For Garbage and Water

Can a family child care provider be charged more for garbage collection and water usage in her home?

Can she be forced to pay more for a warranty covering her appliances?

Unfortunately, in some situations, the answer is yes.

Local water utilities and garbage companies set their rates based on the type of user of their services. Residential users pay less than commercial users.

Companies that sell central air conditioning, heating system, dishwashers, refrigerators, washer, dryer, etc. also issue warranties that can limit the user to residential, not commercial use.

Recently a family child care provider contacted me to say that the company that sold her various appliances and a heating system would not honor their warranty to repair a cracked heat exchanger.

The company’s warranty states, "Contract covers only single family residential-use property.... Contract is for owned or rented residential property, not for commercial property or premises converted into a business, including but not limited to, nursing/care homes, fraternity/sorority houses or day care centers."

In the past, I have heard from other child care providers about local cities wanting to charge them more for garbage pickup or water use.

How to Fight Back

First, look closely at any warranty before you buy an appliance or a central air conditioning/heating system. There is likely to be a restriction on commercial use. If so, you should ask about whether the warranty covers you. If the answer is yes, get it in writing.

If the answer is no, here are the arguments you can try to make that you are a residential, not commercial user:

* Your family child care home is licensed to operate in a residential area.

* Your state's zoning laws may allow your business in a residential area.

* You pay property taxes as a residential, not commercial user.

* You have not made any commercial modifications to your home that alter its residential nature.

* You live in the home where the appliances are used. In most commercial settings, the owner does not live in the commercial space.

* Some warranties, like the one above, refer to child care centers. You are not a child care center. Explain that the child care licensing rules are different between homes and centers. You do not care for 40-100 children. Tell the company how many children you care for. You are probably using the appliances, etc. in the same way that a large family does.

* There is probably no evidence that your use of the appliances, etc. has caused any unusual wear and tear. Commercial use is considered a much heavier use than residential use.

* If you cannot get a warranty that covers only residential use, ask about getting a commercial warranty.

You may want to contact the president of the company and explain your situation. It's likely that the company was not thinking about family child care when they wrote their warranty.

Years ago family child care providers in Minnesota were told by the phone company that they would have to pay a commercial rate for their monthly phone bill. I was part of an effort to contact the president of the company, who reversed their policy after hearing about what family child care was all about.

In the end, if you lose the battle and end up paying a higher fee for a commercial warranty, you can deduct the time-space % of the cost of a residential warranty and 100% of the extra cost for a commercial warranty.

Tom Copeland - www.tomcopelandblog.com

Image credit: https://www.startribune.com/st-paul-trash-system-will-go-to-voters-judge-orders/510641412/