Zoning certifications are available from planning offices of the jurisdiction in which the property is located. The buyer should ensure that the building is currently in compliance with existing zoning regulations. Further, the buyer should learn of any planned zoning changes that may adversely affect their intended use of the property by speaking with representatives from the local zoning office.
Zoning in Residential Real Estate
Residential zoning laws, like commercial ones, vary from city-to-city, and state-to-state. Knowing what they are and making sure that you and your tenants are in compliance is key. Tenants who decide to operate a home-based business in the apartment they lease from you, for example, may earn you a fine. It is likewise critical to keep up on your knowledge of zoning plans; a city deciding to develop commercial property could re-zone your property and pressure you to sell (though they cannot force you to do so). Know beforehand the applicable zoning laws and forecast what they may be during the time horizon you plan to hold the property.
Zoning in Commercial Real Estate
Owners of commercial real estate property should ensure that the property currently complies with existing zoning regulations, especially if they plan renovations, development, or further expansion. Zoning also includes assessments, exactions, and impact fees - which can directly impact how much net income you can expect to generate. After you purchase the property, it is critical to keep on top of developments in the city's zoning plans.