Legal Lease Agreement ?

Question

I’m considering buying a duplex. Each side is one wall away from separating the upstairs and downstairs into separate living spaces with a shared entrance. The area is only zoned to allow a duplex… is there a way to legally have separate leases for upstairs and downstairs without violating the zoning restrictions? Possibly a rent by the room concept?

Drew Sygit · Answer

You'll want to check out Boarding House regulations.

Kevin Sobilo · Answer

@Bradley Daly, I echo the things both Account Closed said.

1. If you cannot separate the units, your approach to renting rooms would be considered a "rooming house" which may or may not be permitted in that area. It may also have special requirements like a certain amount of offstreet parking or whatever.

2. Talk to a real estate lawyer. Even if the zoning ordinance only allows 2 units, the zoning board may approve you converting to 4 units especially if some older homes in that area built prior to the zoning ordinance are 3-4 units.

3. If you think getting permission from the zoning board is possible, you could make the purchase agreement contingent on getting zoning approval. So, you could get it under contract, then get approval BEFORE closing on the property.

Garrett Crosby · Answer

Good advice above. The zoning piece is the key variable here \u2014 what the ordinance says on paper versus what the city will actually approve or look the other way on are often two different things. Worth calling the planning department directly and asking how they handle room-by-room rentals in duplex-zoned properties in that area.

Making the purchase contingent on zoning approval (as Kevin mentioned) is smart if the whole investment thesis depends on being able to rent it as four units rather than two. If the numbers only work with 4 tenants and zoning doesn't allow it, that's a deal-breaker you want to know before closing, not after.

Legal Lease Agreement ?

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