Legal Question in Civil Litigation in Maryland

First of all, you want to make sure they are licensed and fully insured, especially against any claims from their customers. The insurance should name you as a covered insured, so that if any claims are filed against you that insurance will protect you. Make sure there is adequate coverage--I suggest $1 million minimum. You would also want to make sure your lease requires the tenant to restore the premises to their condition at the beginning of the lease, because the wear and tear on your property is inevitably going to markedly increase as a day care center. I suggest you also insist on a significant increase in any security deposit you got when they moved in. Finally, have an experienced real estate attorney draw up an amendment to your lease containing an indemnification agreement specifically referencing this business and not leaving open the possibility of them starting another business without your consent. But the bottom line is the insurance and the security deposit--their promises are worthless if they don't run it well or go belly up.

In addition to the insurance coverage issues already discussed, you must determine if the zoning, neighborhood and community restrictions permit operation of a daycare. The operator will also require a license, and the property must be inspected for fire and heath safety. Assuming all this happens, and modifications must be made to make the house child-safe, who will pay for the modifications? And do you want your property modified?