If you own a business, be sure to formalize this with a rental agreement as part of their employment contract.
Say we have two parents who both need an office each, a room per kid, it all adds up very quickly. $$$ that would have been spent by the employer are now spent by the employee.
One of the best things about remote work is that it allows you to live in places that are not super expensive. You could easily get double the space for less money in real dollars in many places around the US.