Buying or renting a commercial property for your home has never been an option for most of us. However, with its rising demand as a significant housing choice, most first-timers go for commercial property to fulfill their human needs.
They are attractive, with a perfect lighting environment ideal for living. But, it is not easy to stuff your belongings into these property types. You need to comply and observe legal actions to be on the right side of the law.
This brings us to the question; can you live on commercial property?
Well, it is possible to live on commercial property. You need to know a few things at your fingertips to have an enjoyable stay at these commercial properties.
Keep reading this article for some insightful knowledge on renting or buying a commercial property for you and your family.
Commercial Property Definition
Before moving along deep with this fascinating discussion, let us familiarize ourselves with the key term, “commercial property.”
You can define commercial property as real estate for business endeavors. There are several other meanings of commercial property. Commercial property may be referred to as land you can utilize to generate profitable returns. Also, it might be a huge residential rental resource.
A commercial property might comprise malls, offices, manufacturing outlets, or even industrial estates.
Real Estate Zoning Laws
Zoning is the regulations or local laws set aside by authorities that classify the use of a real estate property in a region.
Some of these zoning classifications are residential, commercial, industrial, and mixed-used designations. What is a mixed-used designation type? This is a real estate that has at least two designs. For example, a property that combines both living and working units.
These laws can be abolished or modified by the local power, considering they operate within the federal or country statutes.
The authorities use a master plan to partition these lands and determine their use. These rules might be tough for you to understand.
You need to know they exist due to several reasons, including promoting economic development, controlling the city’s traffic, managing resources or noise pollution in the region.
Real estate zoning laws differ in regions. For instance, the rules might limit building height in some regions regardless of whether they meet the set zoning standards. Or restrict the use of residential land to set up a manufacturing business.
Some regions might treat an apartment as a commercial property. However, its literal nature is residential since many individuals occupy the space.
These properties’ prices might be affected by these restrictions when purchasing such a piece of property. Real estate may impose premium charges depending on the limits set by the municipalities.
How Building Re-Zoning Works
It is possible to re-zone a building property. However, the process is not quite simple. As mentioned above, zoning exists to safeguard people’s values and the building, besides affirming land property’s right use.
Without these laws, society might eventually become a highly-polluted environment and unsafe for our health. You could find an industrial plant next to your kid’s elementary education facility.
Depending on your conditions, it is generally simple to get approval for your re-zoning request. Such situations might be if your commercial property is far away, like two blocks away from a residential zone.
It would be wise to come with a significant reason for the high need for a mixed-space or commercial property in the region.
Zoning approvals occur at the local levels, and the application process happens within the state or in towns. Some regions have a vast property already customized for usage. It makes it simpler for buyers to meet their desires.
Your place might require you to sign up for a permit before utilizing the commercial property as your residential home. These authorizations might be vast or limited, depending on the policies put in place.
Property owners lack control in determining the success or failure of a zoning permit. The initial step to follow through is to consult your local zoning authority for clear guidelines. If the permits emerge to be inadequate, it would be helpful to go back to the drawing board and reconsider another option.
Or, you can reach a diligent real estate agent for a helpful piece of advice. These experts might be well familiar with the local area and all the policies for commercial conversion. They will help you accordingly on the right step to take.
Top Things To Consider When Investing In Commercial Property
If you have an incredible interest in investing in commercial property, you need to consider a pool of factors before doing so. Take a look below.
Method of investment
Before purchasing commercial property for your residential home, it would be useful first to think about what type of investment you want. Is it a short-term or a long-term investment project?
Most individuals rely heavily on short-term ideas and forget about the pitfalls of a long-term one. Regardless of your experience and knowledge of real estate, always consider the likelihood of fluctuations. It will assist in planning for the right investment.
Different regions have varying commercial property performances. If you pick a commercial property near your place of work, learn about its success beforehand.
Also, your experience in commercial property counts a lot when investing in this type of property.
Perhaps you might have had a successful time, and you are currently seeking a more adventurous activity with greater risks and rewards.
Or, this might be your first time, and you are not sure if the odds will be in your favor.
With the vast knowledge and experience, you need to set your head straight whether you opt for leasing or buying a commercial property. The two choices come along with their pros and drawbacks.
You can consult a professional to know the right option for you. After finding the suitable property, you can reach a commercial real estate lawyer to outline some essential leases and clauses.
Differences Between Commercial And Residential Property Leasing
Leasing is a common practice in real estate. Can you differentiate between commercial and residential property leasing?
It will be easy to clearly understand these distinct terms before making up your mind to live in a commercial property. Here are their mere differences:
Residential leases serve the ultimate purpose of providing families and individuals with day-to-day accommodation.
Contrarily, commercial property is typically not for this purpose. Even if it has basic living utilities such as a kitchen section, some regions do not consider commercial property an effective solution.
Some contracts might disapprove of your contract if this is the type of leasing you desire.
They consider commercial property significant for business use. There are concerns that commercial property needs to be used to offers products or services. Also, they typically outline business operations to take place on the premise.
Conversely, residential leasing abolishes the use of the property when engaging in commercial activities.
Residential property has vast legal protections, unlike commercial property. This is because the laws know both commercial property parties have equal rights when entering into a lease contract.
However, in a residential property, the tenant does not have vast knowledge or equal rights to the property owner. There exist multiple laws that shun residential landlords from exploiting their tenants.
Repairs and maintenance
When you lease residential property, you have little to no responsibility for any repairs in the building. If something needs maintenance, you only need to send a notice to your landlord, who will handle the repair costs within sufficient time.
However, it is a bit different when living on a commercial property. The tenant might have to account for more costs in commercial buildings.
In most cases, the landlord only needs to maintain the physical building. And, you are left with the responsibility of taking care of the rest. The breakdown of the costs is normally detailed in a commercial lease.
Most residential lease contracts tend to take one year. You might opt to renew the contract every month.
On the other hand, commercial leasing takes longer than one year. They might even take three to five years.
One of the common similarities between commercial and residential property is that both of its contracts are critical. It would help if you were cautious when entering into these agreements.
If you have limited knowledge of these property types, it would be best to reach a legal professional. He or she might review or even craft the contract for you. It will help in shunning legal conflicts along the way.
When deciding where to live with your family or lover, it would be best to be cautious when interacting with commercial property. You need to comply with the set local regulations to avoid arrest or facing penalties.
Commercial property has its drawbacks that might not be safe for human living. However, if you are facing financial struggles, commercial property will do you a lot of savings.