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Is it Possible to turn your Residential to a Business?

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What rules actually apply when converting your residential to a business?

If you’re considering operating a home-based business, you must become familiar with your municipality’s zoning ordinance. Zoning laws are enforced at the local level.

Therefore, if you want to ask for a change in the way your residential property is classified, you’ll need to follow specific procedures as dictated by your municipality’s zoning board.

What are the Zoning Basics?

Zoning ordinances exist to maintain the nature and purpose of the property. They also provide segregation of incompatible land use.

Moreover, zoning prevents new development from hurting existing businesses and residences.

Property is generally classified as commercial, residential, recreational, industrial or agricultural. Zoning ensures that residential areas are situated in a manner that provides enough space for homes, utility infrastructure, schools and street development.

So what happens when you want to switch from Residential to a business?

Areas that are zoned for residential purposes generally include single- and multi-family homes. Getting residential property rezoned as commercial property is often difficult because commercial land use may infringe on privacy and cause an increase in traffic.

As a resident of a municipality, you have a right to ask your local zoning board for permission to rezone their residential property. However, it’s generally more common to seek a variance.

A variance is simply a permit to use land in a manner that is an exception to existing zoning restrictions.

Can you have a Home-based Business?

Although zoning ordinances vary, many municipalities allow homeowners to operate a business in their residence. But, many restrictions apply.

For example, a home-based business is often allowed without the need for a variance or registration, provided the primary purpose of the property is for residential use.

There are often restrictions on the amount and size of signage; limits are often placed on parking and the number of vehicles used in conjunction with a home-based business.

Additionally, it’s common for municipalities to restrict how many customers or clients can visit per day.

Rezoning and Variance Application Procedures

If you’re considering operating a sizable home-based business, one that would be too large to comply with residential zoning restrictions and you wish to have your property rezoned as commercial, you will have to obtain approval from your local zoning board or planning commission.

Although procedures vary from municipality to municipality, the process typically involves public notice, meetings with planning commission officers and neighbourhood meetings. Variance application procedures also typically involve public notice and neighbourhood meetings.

Related: How to Know you’re Following Zoning Laws

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