It is still not clear to me how your visit to the authorities went. You went to the public order office to register the business? There they sent you to the building authority because a change of use is required? I know that the amendment of the Prostitutes Protection Act in NRW about two years ago indirectly impacted the building regulations, as requirements were now imposed on the premises, which under certain circumstances made a change of use necessary and thus the building supervision had to deal with the issue. Is there anything like that in relation to dog boarding facilities with you? One of the two offices should have told you that. At the moment, I cannot imagine what would have to be converted in a residential house for four dogs.
Would such a change of use have disadvantages for us?
If there is something like an operating location ordinance for dog boarding facilities that requires a dog-keeping room even for only three foreign dogs, and you declare your living room as such, IMHO you are no longer allowed to use the living room for living, analogous to the treatment room of a naturopath.
Consultation by a lawyer
If no verifiable answer comes here or in the dog boarding forum (does that exist?), that will probably be the right way. I just don’t know how to find someone with enough experience to give useful answers, since several legal fields are touched upon here.
I’ll stick with the legal area I know best:
According to your information, it is planning law-wise §34 of the Building Code. The character of the area must therefore be derived from the immediate surroundings. Whether the boundary between WA (general residential area) and MI (mixed-use area) can actually be made in the middle of the street depends on many criteria specifically related to the concrete local situation. However, it is generally very difficult to convince the permitting authority of a contrary classification. Even in court, it only succeeds if gross errors can be proven. If a change of use – into whatever – is actually unavoidable and the authority remains with the classification “general residential area,” the official way is probably barred. It would be a shame if the laws led the citizen to ignore them. Please keep us posted.
P.S.:
I referred the circumstance to building class 3 and the height of 7m.
Your building is probably class 1 or 2, as the height relates to the floor of the highest dwelling room. But that doesn’t help since even with exemption from approval, all regulations must be complied with, only they are not checked by authorities. If your neighbor can prove a violation of your dog care against the BImSch (Federal Immission Control Act), the operation is illegal and must be closed.