Can You Use Commercial Property as Residential?

Commercial properties are best known for the additional cash flows they inject when rented out, but their importance doesn’t stop there. You can rezone the property to residential if the appropriate laws allow. Notably, not all commercial buildings are perfect for conversion to residential.

If you’re looking to find gas stations for sale, you can find one near a commercial property that’s been converted into residential property. Here’s what you need to know to convert your commercial property into a residential one successfully. 

Things to Keep in Mind Before Using Commercial Property as Residential

Laws and the Regulations 

Conversion from commercial to residential is possible only if the local government laws and regulations permit—the local municipal regulations reserve particular areas for commercial or residential use. 

Check with the local authorities, or read the regulations online before you decide to use commercial property as residential. Schedule a meeting with the county clerk to answer some of your questions about the conversion.

In addition, the commercial property must be up to date with the code. 

Remember that commercial and residential properties are built for different purposes, and there’ll be other structural requirements you may have to include to make your commercial property residential. 

There are regulations about entry and exit points, water pipes, and electrical installations, and all these impose on the ability to convert the commercial property to residential.

Renovation Costs 

Consider how much renovation costs you’re going to incur before using commercial property as residential. Typically, book an appointment with specialized designers and professionals to give you the actual cost of making the conversion up to code. 

These professionals must have done this kind of conversion severally, preferably in the same area as the commercial property. 

There are also costs of hiring skilled personnel, materials, and the actual conversion process. Remember that the conversion will go through an approval process. This can take a while, depending on the size of the project. 

The whole rezoning and approval procedure could take several months, a delay that shoots up the holding costs. All these costs can quickly pile up and sometimes make the deal unreasonable. 

Area Layout

Even when the zoning laws permit, the exterior layout of the commercial property’s location can sometimes be a challenge. The traffic flow may inhibit easy access to the building and make the switch unreasonable. 

You may overlook the layout factor and proceed with the conversion, but resale may be an uphill task, and advertising and convincing potential tenants will be difficult. If this happens, the switchover may not make sense. 

Converting Commercial Property to Residential 

If converting the commercial property to residential is appealing, understand the process. The goal is to make the switch as smooth as possible, and having the necessary insights guarantees it. 

Identify property listings that are eligible and sensible for the conversion to residential property. When satisfied, examine the laws for insights into any extra steps required to convert. 

Then secure financing for the whole conversion process, from permit, wait period, and renovation costs. More importantly, understand zoning to avoid wasting time and resources on ineligible commercial property. 

To begin the rezoning process:

• Research everything about the local rezoning and restrictions from the relevant local authorities. The local zoning laws are critical and should be your first stop when considering using commercial property as residential.
• Some local resistance may be present, but you can counter this by examining the changes occurring in the area and using them to your advantage. Are there some new road constructions or buildings, and will they benefit your objective? Identify the locals that may buy into your plans, and listen to their opinions. The resistance and pushback from neighbors can significantly impact approval. Talk to the neighbors first and try to win them on your side. It’s important.

After you’re sure about the process and your resolve to go ahead, apply for rezoning. Usually, the rezoning application cost depends on the area and can take weeks to months. 

Your plans will be analyzed and may recommend necessary changes. The petition to rezone will be made public, and a committee meeting will be held to afford the public members a chance to air their views. 

A legislative body will then make the final decision. If your submission is rejected, you may need to wait a specific period before reapplying. 

While it’s possible to use commercial property as residential, it does not apply to all properties. There are zoning laws, conversion costs, and the project’s reasonability to consider. Don’t rush the project and, most importantly, leverage the existing features.