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Real estate is a field that is attracting new entrepreneurs every day. Nonetheless, it is a business that has turns and twists and one has to understand it well. Did you know that there are property developments that cannot be allowed in a certain jurisdiction? Property zoning is regulations of how a landowner can use it. Zoning restricts land use to protect the safety, health, and welfare of the public.


What are the different types of zoning?

  • Agriculture
  • Residential
  • Commercial
  • Historic
  • Esthetic
  • Industrial

Zoning ordinance describes what can be done in a particular zone. What are some rules that ordinance impose? It describes the kind of buildings to erect, use of hazardous materials, parking requirements, buildings height, advertising signage and the number of similar businesses that can operate in a zone. The zoning laws can be changed by the local governing bodies. When purchasing property, it is critical to get a zoning map from the relevant local government and municipality.


What are the effects of zoning to the investor?

Zoning affects the value of a property because of the kind of investment one can do. Rezoning from one use to the other can increase or decrease the value of a particular land. Knowing the zoning rules and regulations enables the investor to realize the potential of a property. This will help in putting the property into best and highest use. Understanding the zoning before purchases can help an investor in making informed decisions and conforming to the ordinance to avoid illegalities.

Zoning can affect the loan that an investor can get as lenders rely on the type of property used as security. As a landlord, it is vital to include a clause of what can be done and what cannot be done on the property while drafting the tenants’ lease agreement. An investor needs to know that previous use of the property means they can carry on with the use. A previous owner may have applied for a variance to acquire some exceptions.


What can happen if the rules are too restrictive for an investor?

As mentioned above, an investor can apply for variance or lobby for legislative changes, file a lawsuit or make a presentation to the planning and zoning boards. The rezoning may happen if the citizens’ quality of life will improve.