Changing House Zoning / AirBnB workaround?

Changing House Zoning / AirBnB workaround?

Rental Property Investor · Indianapolis, IN · Member since 2017 · 54 posts · 18 votes

We have a 3-family in Swampscott, Massachusetts that also has a large basement. So this is potentially a four family house.

But we are only zoned for 2-family. Floors 1 and 2 are currently occupied by the tenants and us. My question is twofold:

1) if we can’t get it zoned to 3 or 4 family, can we at least Airbnb the basement? I don’t know how Airbnb is considered versus standard renting.

2) How hard would it be to get zoned to a 3 or even 4 family? What is the criteria of a zoning board that we should be considering?....or is this just a networking challenge?

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China, ME · Member since 2014 · 3k+ posts · 4k+ votes
8y

@Amil D. Also be sure to be on good terms with your neighbors.  The Zoning Board of Appeals will notify all abutters and solicit their comments.

You might consider contacting them first, so you can sell the idea to them before they get a notification in the mail.  Concentrate on how the change won't have any impact on them - and don't be surprised if one of them wants their palms greased.

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  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    8y

    Getting the zoning density increased is usually extremely difficult, unless the adjacent properties are already zoned for it.  If not, the basement would be an illegal unit, no matter how you reneged it out, or even lived in it yourself.

    BTW, is it a Legal 3 unit, since it’s zoned for 2 units?

  • Rental Property Investor · Beverly, MA · Member since 2018 · 41 posts · 16 votes
    8y

    Look up the local zoning regs for Swampscott and see what zone your property is in.  Based on that, you should be able to find what the process is (if it is possible) to re-zone the property.  It might be as simple as an application, or could be an appeal and then fight with the zoning board, depending on the town and where your property is located in there.

    Or you could call up the building department and ask them, if you'd rather do that.  Just don't give them too much info about your property if it's possible you're not currently following the current zoning for the property.  

  • China, ME · Member since 2014 · 3k+ posts · 4k+ votes
    8y

    @Amil D. Also be sure to be on good terms with your neighbors.  The Zoning Board of Appeals will notify all abutters and solicit their comments.

    You might consider contacting them first, so you can sell the idea to them before they get a notification in the mail.  Concentrate on how the change won't have any impact on them - and don't be surprised if one of them wants their palms greased.

  • Rental Property Investor · Indianapolis, IN · Member since 2017 · 54 posts · 18 votes
    7y

    @Wayne Brooks thanks for your comment!

    The way I posted was confusing, I will edit it.  It is zoned as a 2-family.   We have a 3rd floor as well as a basement but nobody is living in them currently. The only floors being used are the first and second.

    Can you clarify why the basement is an illegal unit?  As long as we do not add a full kitchen, why couldn't we use the space?  I understand that if it is zoned as 2-family, we cannot rent it out to a tenant.  But wouldn't we be able to airBnB it?

  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    7y

    @Charlie MacPherson had great insight! 

    In terms of Airbnb rentals, they are VERY lax about what they consider a unit, you can rent a trailer in your driveway and they would consider that rental space. They make money when you make money as long as it is safe and desirable. Since it is an own occupied space you will be qualified to use it as a airbnb (they wont let you do it if you're an absentee). That's a fantastic way to generate extra income without very much hassle as Airbnb take care of payments and charge fairly low fees for their services. 

    Changing the zoning will be a tougher conversation however as that change the neighborhood and use of property. Changing any type of structure will make you conform to today's codes such as electrical and plumbing to make sure that it is sufficient for the amount of occupants. It will also be more sewage and water use, the city has to consider all of this when they're deciding to allow you to convert or not. I'd say typically in a more bedroom community like Swampscott they're most resistant because they're not in need for housing and do not want a multi to disturb the overall esthetic of the city by increasing MFs in the neighborhoods. 

    Start with the zoning board and take a field trip down to City Hall and do a little due diligence before you get too deep into the project and weigh the equity benefit of such an improvement. 

  • Investor · Stratham, NH · Member since 2015 · 43 posts · 16 votes
    7y

    also make sure you understand sprinkler requirements. In some towns Going from above 2 units will require the units be sprinklered. Very expensive 

  • Rental Property Investor · Indianapolis, IN · Member since 2017 · 54 posts · 18 votes
    7y

    @Lien Vuong Here I go trying to revive the post back from the dead.... :)

    That is really helpful!  We are strongly considering AirBnB at this point.

    If we implement AirBnB, we would not have to bother with changing zoning...is that correct?

    It would be great if you could shoot me an email so we can continue this...let me know and I can PM it to you.

    I'm terrible at checking BP :)

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