Hello all. I am new to bigger pockets and one could say new to real estate investing. I am in the process of acquiring my first multifamily rental property. One of the issues im having is getting familiar with the zoning and land uses. It looks pretty simple but I would like to understand more what I can use my land for depending on the zoning and also what I can apply for and how long is the process and how much it would cost me. Does anyone has a good book or source that I can read to better understand this topic. Thanks
I'm an architect in RI and MA, so take my advice with a grain of salt & then research your area.
Zoning is LOCAL law that applies to property, it regulates the USE of the property (IE: single family, multi-family, commercial, etc) and the DIMENSIONS of the property (IE: how big does the property need to be for a particular use)
Every scenario and property are different, but here's a couple of examples:
An owner calls me. They have an existing two-family home. They want to convert it to a three-family home. I look at the underlying zoning and realize it's in a one-family zone. It's highly unlikely they'll be able to do the conversion, but if they did, they'd be required to get a variance.
(Note: a variance is a process whereby you can get "relief" from one or more parts of the zoning ordinace. A typical variance would be to build closer to a setback than is allowed "by-right" in the zoning ordinance. Another typical variance would be to build on a property that is too small than allowed "by-right" in the zoning ordinance.)
Another example:
A client calls. They have a residential property that they live in. They want to have a small business in this property - say, a lawyer's office. It'll be just the resident working as a lawyer, and occasionally she will have clients come by for in-person consults. I look at the ordinance and discover that commercial use isn't allowed in the zone, but a "home occupation" is allowed by special permit. We help the client get the special permit, and then they can use part of their home as an office.
(Note: a special permit is a different type of process, very similar to a variance, where you can get special permission to do something under the ordinance.)
Generally, as investors, we want to discover new ways to make money on our properties - either adding units or building more units than allowed. This almost always involves a variance. The more you work with a zoning ordinance the more you'll understand. It's also very dependant on the local people - both the "staff" (IE: people who work for the town in the planning, building, zoning depts, etc) and on the members of the board (zoning board, planning board, etc). Some communities are very easy going with their variances, and others never grant them. Likewise, some zoning ordinances are more easy going than others.
For example, in my area, Providence RI has NO minimum property size for single-family homes. Newton MA requires something like 15,000 SF for a single-family home. Both can be excellent investment locations, but the rules are different.
I hope this helps. You can always have a discussion with the local staff, and they can help you understand their ordinances and the process.
Which jurisdiction specifically? Message me & I'll provide.
I'm an architect in RI and MA, so take my advice with a grain of salt & then research your area.
Zoning is LOCAL law that applies to property, it regulates the USE of the property (IE: single family, multi-family, commercial, etc) and the DIMENSIONS of the property (IE: how big does the property need to be for a particular use)
Every scenario and property are different, but here's a couple of examples:
An owner calls me. They have an existing two-family home. They want to convert it to a three-family home. I look at the underlying zoning and realize it's in a one-family zone. It's highly unlikely they'll be able to do the conversion, but if they did, they'd be required to get a variance.
(Note: a variance is a process whereby you can get "relief" from one or more parts of the zoning ordinace. A typical variance would be to build closer to a setback than is allowed "by-right" in the zoning ordinance. Another typical variance would be to build on a property that is too small than allowed "by-right" in the zoning ordinance.)
Another example:
A client calls. They have a residential property that they live in. They want to have a small business in this property - say, a lawyer's office. It'll be just the resident working as a lawyer, and occasionally she will have clients come by for in-person consults. I look at the ordinance and discover that commercial use isn't allowed in the zone, but a "home occupation" is allowed by special permit. We help the client get the special permit, and then they can use part of their home as an office.
(Note: a special permit is a different type of process, very similar to a variance, where you can get special permission to do something under the ordinance.)
Generally, as investors, we want to discover new ways to make money on our properties - either adding units or building more units than allowed. This almost always involves a variance. The more you work with a zoning ordinance the more you'll understand. It's also very dependant on the local people - both the "staff" (IE: people who work for the town in the planning, building, zoning depts, etc) and on the members of the board (zoning board, planning board, etc). Some communities are very easy going with their variances, and others never grant them. Likewise, some zoning ordinances are more easy going than others.
For example, in my area, Providence RI has NO minimum property size for single-family homes. Newton MA requires something like 15,000 SF for a single-family home. Both can be excellent investment locations, but the rules are different.
I hope this helps. You can always have a discussion with the local staff, and they can help you understand their ordinances and the process.
@David Sisson This is very useful and straight forward information. I was actually reading about it online and on the govs page and it makes more sense now that I read you post. I appreciate your time and the information, really.
Let me ask you something. I run into this land that I think has a big potential. It is authorized for residential properties, specifically single family. The land currently has one unit, but it is big enough to develop more units. My first question is, since it is approved for single family properties, could i just go ahead and build more single families without requesting any permission?
There is another property nearby with the same zoning that is approved for residential multifamily housing. I check the govs web page and according to the zoning, no multifamily is prohibited. Did they request a land use change? could i request the same thing?
In the scenario that I could request a land use change and i am approved to build multifamily units, in that first land i was talking you about, is it possible to have one single family and for example to duplex in the same land, meaning, mixing up property types?
Thanks again for your time.
MOST zones don't allow more than one "principal" building on the site. It's not unheard of, but it is rare in my experience. Usually having two or more buildings on a site is reserved for commercially zoned sites.
Here's a couple of scenarios:
1) The site is 15,000 SF. Only 5000 SF is required for a single-family. Multifamily isn't allowed in the zone. You MIGHT be able to split the land into 3 sites - this is called a "minor subdivision". Can you actually do this? It would depend on more than just the lot area - you'd also need to meet the frontage requirements, width requirements, and depth requirements. (And other requirements).
2) The site is 7,500 SF. The zone requires 5000 SF for a single-family, and 9,000 SF for a two-family. You don't have enough SF for a two-family, but you go for a variance for lot area to do a two-family anyway.
3) Your site is zoned single-family. You want to do multi-family. You go for a re-zone of the property. This is usually impossible, but they might consider it if your site is on the edge of a zone change (IE: you are right next to a different zone, the zone you want...) and there are a lot of multi-families or even more intense uses nearby. Honestly, this does not happen very often, because the standard for a rezone is really high.
In the case of your nearby lot that's approved for multi even though it's in a single-family zone - it's possible that it is "grandfathered" as a multi-family, or maybe they received a variance. The only way to know is to go downtown and talk to the planning/zoning/building dept and find out if it's really true and why.
@David Sisson understood. Thanks to you I am more educated on this topic now. I now know what to ask and where to look to solve my issues. I really really appreciate man! I called the day before yesterday to the planning/zoning department and summited a request to have them call me back. They said it could take up to 4 days for the to call me. I am waiting for that call to show them the situation and learn as much as possible. I will let you know how it goes or if I have more questions. Once again, thanks a lot!
They will be able to set you straight.
One set of questions I always ask is:
1) Here's what we want to do.
2) Can we do it?
3) If not, is there a process for doing it anyway? (IE: a variance)
4) If there is a process, what is the process? (What are the steps and what information do I need to provide at each step?)
5) What are the chances of getting permission to do it? (IE: do you actually ever grant variances? Is this something that might get a variance?)
6) Is there anything else I need to know, or any questions I've forgotten?
I've realized over the years that it's a really good idea to get on the good side of the staff. When the project goes to the zoning (or planning) board, the staff writes up a recommendation for the project. If the staff supports the project, then they'll write a recommendation in support of the project, and the board will probably vote with them / agree with them. It always helps to:
1) Be nice / friendly to the staff
2) Tell them honestly what you want to do
3) Try to provide them the information clearly and concisely
4) Get their feedback on the project before you actually submit it for the variance/special permit
I have to work with the same staff over and over again, and I try to treat them really well. They are used to getting yelled at by community members who treat it as an antagonistic relationship, so a bit of kindness goes a long way.
@David Sisson
Hey thank you so much for that information.
@David Sisson already wrote down this good questions. I will be extra nice with this people. good advice. Thanks brother!
Don't be afraid of variances, they are how you get things done and how you can make more money. With that said, the standard for a variance is "Is this the LEAST amount of relief necessary?" and also "should we even grant any relief in this case?"
I've got a 100% record on getting variances and special permits - part of the reason is that I work hard to determine if they'll grant it before we even start - I don't take cases that I think will fail.
In other words, just because you want it, it doesn't mean that they'll allow it. Look for properties where a small request can get you big returns. Some examples:
1) A property is slightly (say 300 or 500 SF) undersized to do a 2 family. All the properties around it are the same size, and all have 2 families. They'll probably give it to you.
2) You want to add a 3rd bedroom to a 1 bedroom home. The only place to add it goes slightly over the setback line - say 1 or 2 feet over. This really does not change the relationship of the home to the neighbors. They'll probably give it to you.
3) It's a single-family home with 2 parking spaces on the lot. The zone is single family. You want to turn it into a 4 family, which requires 8 parking spaces, and furthermore, you want to go 2 stories above the allowed height, and you want to cut down the setbacks from 20 feet to 5 feet. It's highly unlikely they'll give it to you.
@David Sisson in case I need to work on submitting a change of zoning or a variance or just to look and analyze this property, what kind of person should i look for? architect?
Frequently, you'll need some or all of these people:
- Architect - to design the building and decide how it lays out on the land
- Surveyor - to measure the existing property, existing building, and make a survey. Once the architect is done with his/her drawing, the surveyor will put in the new outline of the building and make a site plan
- Possible: depending on the size and complexity - and what the city requires - a civil engineer to design other things on the site. Sometimes the civil engineer and the surveyor are the same people. They will design pavement, stormwater control, grading of the site.
- Possible: a landscape architect. In smaller projects, a landscape arch and a civil engineer might be interchangeable. They will do site design, including pavement, plants, stormwater control.
- Possible: a lawyer experienced in zoning cases. Small projects don't require a lawyer, but you can use one if you want. I use them on complex and/or larger cases, or if it's required by the city.
You won't always need any or all of these people. In some cases you can do it yourself, in others, you'll need some or all of these. For most of mine, it's just me, and sometimes a surveyor too. Once you've done a few, you'll probably be able to take on more of the legwork yourself.
Awesome info, really appreciate it David!
@David Sisson Right, i think once i get more familiar with the zoning/planning/variance situation i will be able to handle things on my own. for now i need to keep learning and calling to get information. I was actually trying to get a hold of one of the owners of the other lands to see what their process was, what they can tell about it etc...
Hello Juan I own multiple properties in Allapatah and I am also the Fire Marshall in Allapatah. I know the area very well
Hey @Carlos Garcia, nice to meet you! good to do some networking here in miami! I added you on IG.
@Juan Lopez I always do a property search at miamidade.gov, which tells me 1) PA Primary Zone (current use of the property) 2) Primary Land Use (Zoning of the property). Many times you will have a 3100 multi-family 4 or 5 units on a 0803 multifamily 2-9 units, which means that you can add units without dealing with the zoning issue. As @David Sisson mentioned, it's a process and generally (in my opinion) not worth it. Please give us an update if you decide to go through with it!
@Beatriz Goudie thanks for your post. I did find a lot of useful tools at miamidade.gov, and i did see all information that you mention, however, i still dont know what it means. If i post the info here of the properties im looking at, any chance u can help me understand it?
@Juan Lopez sure no problem, I'm happy to help. Send me a message with the information.
@Beatriz Goudie So, here it is the information for land #1:
MIAMI 21 ZONING (current) -> Zone: T3-O; Description: Sub-Urban Zone; Enactment 13114
FORMER 11000 (notvalid) Zone - > R-2 (OLD); Description: Two Family Residential
Existing Land Use - > LU Code: 10; Description: Single-Famil, Med.-Density (2-5DU/Gross acre); Description: residential
Future Land Use -> FLU Code: 2; Description: Duplex Res.; Description: Duplex - Residential
So, what I understand from all this is that currently this land is in zoning T3-O and it is approved for Single Family. Then I see that for future land use it says duplex residential, does this mean i could apply for a duplex unit?
From this information, could you tell if its possible to apply for multifamily?
Hi @Juan Lopez it looks like this is within the City of Miami, not unincorporated Dade. According to the information you provided, it looks like it is already zoned for duplex by RIGHT (T3-O). I would start with the City of Miami to verify.
Thanks @Beatriz Goudie. I appreciate your response. I am still waiting for the call from the zoning department!
Good luck @Juan Lopez! Let me know how it goes.
I agree with David and want to add in my experience it is not worth disputing with zoning staff. Even if they are wrong on the ordinance or something you have to proceed with extreme caution in going around or above them. Best bet is getting them on your side. Part of this as an investor is making a good case for yourself and the fairness or rightness of your zoning request. They prefer that to just handing out variances so people can make more money. They really rely on slippery slope analysis when considering whether to grant. In other words if everyone asked for the same thing you did would it lead to an abuse of the land use plan or other governing principle. Be helpful to them and ask concise questions to facilitate getting information and background for filing permit applications, etc. Also I wanted to add that almost no matter what you do usually you have to ask the municipality to bless it. Even zoning by right stuff on your own property, there is still usually a permit involved. So good to be on good terms with them!
@Ryan Seib thanks for the post man! all this information is very useful, specially for me that im learning.