As you start a business or expand an existing operation, the process may require purchasing real estate. You may also have noticed businesses operating out of what appear to be residential properties. For example, a law office may be located in an older home in a downtown area.
So what are your options when considering new real estate? Are you allowed to use residential property for business purposes, or must you limit your search to commercial properties?
You need to request a variance
In some cases, residential property can be used for commercial purposes, but you generally must request a variance. A variance allows you to deviate from existing zoning regulations.
This is not the same as changing the zoning classification. Even if a variance is granted, the property remains in a residential zone, and neighboring properties will continue to be used for residential purposes. Likewise, the fact that another nearby business has already received a variance does not guarantee that you will be granted the same permission. Each variance request is reviewed on an individual basis.
In general, it may be best to begin your search by focusing on commercial properties. However, if you already own a residential property or find one that may meet your needs, it is possible to request a variance from the local government. This should be done well in advance so you understand what types of use are permitted. Purchasing a residential property and operating a business from it without approval would violate local zoning laws.
The legal process
Zoning issues can be complex, and alleged violations could have a major impact on your business. Be sure you understand what legal steps to take as you move forward.