Creative use of CMX-2 duplex & is a balcony a liability?

Question

Closing on a CMX-2 zoned duplex in Philadelphia soon. It has 2 residential apartments and 2 very large rooms with locks in a basement. Would like to know what can we do with this space in the basement? How do we advertise the appartments? What those rooms can be used for?

Also, there is a large balcony for the second floor apartment which is accessible only from the common area. My husband wants to just close it down, he is afraid of the liability. Do you think balcony is a plus or a liability and how to protect ourselves from the liability point of view aside from keeping it in good safe condition?

Lana Lee · Answer

Thanks again, appreciate it!

Troy Sheets · Answer

If the balcony is safe and legal (railings are high enough, it's properly permitted, etc.) I'd leave it. They definitely bring value, if not directly in rent, then they likely help the unit rent faster or retain tenants longer. People love outdoor space in the city. You have to judge what you're comfortable with though. If your husband will lose sleep over this at night, then lock it up and don't let anyone use it. It's not worth losing sleep over!

Lana Lee · Answer

Thank you, Troy! Its in a very good condition. The lower unit has its own deck, the balcony is for 2nd floor, although accessible from the hallway through the sliding door. We just read some articles about kids and balconies and drunk tenant and balconies.That's what made us worry. Do you think that balcony even adds value to the unit?

Troy Sheets · Answer

What makes your husband think the balcony is a liability? Is it poorly constructed or in need of maintenance? As long as it's safe and up to code, I'd consider allowing use. If it's a common balcony to both units and you're renting to lower income tenants, I'd probably close it off though. Even with our professional tenants in better buildings, shared roof decks are often problematic with noise, parties, trash, using each others equipment, etc. If it's only accessible to one unit and it's safe, I'd likely allow its use.

If you're worried about the safety of it, let's say it's cantilevered and you're worried it could collapse, I'd hire an engineer to look at it and determine whether it's safe or not. If they say it's safe, get it in writing from them so you have a paper trail to cover yourselves. Hope that helps.

Lana Lee · Answer

Thank you. And if you have time could you answer my second question about the balcony .

Yuriy Skripnichenko · Answer

@Lana Lee

You can try calling and start with 311. However, the best bet is to go there in person.

Lana Lee · Answer

Now, when you say "talk to L&I" how do I do that, do I need to schedule an appointment to come in person or is there a phone # I can call?

Yuriy Skripnichenko · Answer

@Kevin Branin

I agree about the revenue and not only for commercial property. The property zoned CMX but it doesn't make it commercial for financial point of view. Also @Lana Lee mentioned that there is already two rooms with locks. So no need to build anything.

@Lana Lee talk to L&I and see what use you can get for the property without applying for variance. There is a possibility that you can get a new occupancy cert for 2-unit + commercial space. If not, then I think you'll have more luck renting the basement rooms as storage.

I have a recent purchase CMX-2 as well and now need to decide if I want to have it as a 2-unit residential + commercial store front (I do not need to do a variance for it, just need to apply for the cert). Or if I want to ally for a variance to use it as a 3-unit residential (which it was used as for at lease last 15 years)

Lana Lee · Answer

Thank you ,Kevin. There are already storage spaces dedicated to each unit. I was thinking if I make the rooms nice and bright with recessed lights maybe I could advertise the rooms as possible home office, fitness room, man cave, your own movie theater, crafts room etc. Do you think I could rent those 2br. units for more money with this kind of bonus rooms?

Lana Lee · Answer

Thank you ,Yuriy. There are already storage spaces dedicated to each unit. I was thinking if I make the rooms nice and bright with recessed lights maybe I could advertise the rooms as possible home office, fitness room, man cave, your own movie theater, crafts room etc. Do you think I could rent those 2br. units for more money with this kind of bonus rooms?