If you expect to offer a service and receive payment in return, you are running a business.

And the pertinent question is going to be what the lease on the apartment you get allows and what is doesn’t allow…even if for some reason you are not technically running a business.

People will be coming by your apartment to drop off and pick up kids, kids will be making noises in the apartment, parents may be creating a parking problem, so you better anticipate having complaints from your neighbors to the landlord or property manager.

You also need to understand, the primary issue with the children is their safety and well being. I think you should go through the approval process both to prove to yourself you are ready to handle the trust that the parents are going to place in you and to help you in successfully marketing your services.

First, all daycare centers are considered a business.

In California, daycare centers are licensed for:
A) Six (6) children or under (excluding family members) or
B) Over 6 children or more.
Cities or local Zoning Laws are not allowed to regulate (small) daycare business for 6 or less children. The reason why Sate law exempts small daycare from local regulations is because the State wants to encourage daycare facilities in a home environment.

However, all small daycare facilities are required to be licensed (by the County government) to insure minimum standards (i.e. CPR training, meet insurance requirements, are not convicted child molesters, minimum floor area and outside standards).

Landlords can not prohibit small daycare centers on their property, but they can require proof of being licensed, thus insuring they have met minimum standards and have insurance.