Zoning Basics

As zoning laws differ extensively from city to city and may or may not be consistently enforced, they pose a major hurdle for many landlords.

For the uninitiated, zoning laws are there to limit certain property types to specific areas of the city. For example, one cannot have a power plant in a residential area, and commercial areas, generally should not contain residential homes. Zoning laws help tenants and property owners co-exist in a peaceable manner by helping to limit disturbance and nuisance calls.

When landlords or investors are on the lookout for rental properties, they must be extra careful not to fall afoul of a city’s zoning laws. Since, zoning laws are subject to change over time, rental property that is legal today, may not be so tomorrow. And, it is the owners of large apartment complexes that are more vulnerable than other landlords to the vagaries of zoning laws. Large multi-unit complexes are bound to have a large number of visitors on a frequent basis, which may cause neighbours to file complaints with the local zoning commission. Tenant behaviours can also lead to zoning complaints, if they happen to run commercial businesses from your rental property.

To ensure you stay on the right side of applicable zoning laws, take the following steps:

1. Tenant activities should be limited. If you have a residential rental property, make it clear to your tenants that they need to ask for permission before they begin to run a business from your building. As long as, their home-based business does not cause a frequent rush of visitors, it should not be a problem. In case, the tenant plans to operate a beauty parlour from the apartment, the resultant traffic could disturb other residents of the building.While, tenants have a right to live their lives, as long as they are renting your property, you as landlord, have the right to place a limit on their activities, most especially if the activity may result in negative consequences for you.
2. A landlord must know the zoning laws before buying rental property. Before making a property purchase, familiarize yourself with the local zoning laws. As well, you will need to stay abreast of changes in local zoning laws and how they may affect your rental property.If other landlords are facing difficulties with the zoning laws, it would be a good idea to form a group to change those laws that limit rental property profitability. All landlords together can be more effective with a zoning commission than a single individual.
3. Have in-depth knowledge of your city districts. If your city is neatly divided into specified districts for residential, commercial and industrial zones, you will not have any problem with zoning laws. But, as the urban sprawl spills over, these demarcation lines are becoming hazy. More and more apartment complexes are coming up within commercial or industrial districts. It may be easier to attract tenants in these areas, but you could run into zoning problems. Consider this point carefully when buying rental property. If you are uncertain of how zoning laws may affect your potential rental property, investigate carefully to avoid becoming embroiled in a zoning war.
4. Property potential is affected by the zone. If your rental property is situated right at the heart of a noisy, commercial or industrial district, you could have difficulties attracting new tenants. Industrial noise can disturb the peace and quiet, proving to be particularly troublesome if a factory operates 24-hours a day.Property value is also affected by the zone it currently is in. If, neighbouring building structures are in bad shape, or they are not subjected to regular spit and polish, this can adversely affect the value of your property, especially if you plan to resell the property at a later date.

Zoning laws are not difficult to understand, you simply have to take the time to investigate local zones, and check with your zoning commission if there is any unclarity regarding zoning laws in your area.

Just as buying rental property in compliance with the zoning laws is of the utmost importance, selecting the right tenant for it serves to reassure you that your property is in good hands. Right selection also ensures your tenants will remain with you for many years to come. Further, getting relevant information on rental application forms assists you in screening prospective tenants, tenants who will respect, maintain and limit property damage to only wear and tear. For help in suitable tenant selection, visit www.e-renter.com for tenant screening and background check services, the best and only way to prevent expensive litigation, penalty charges or property damage.