How Your Real Estate Investment Strategy Involves Zoning Board Decisions

If you have ever looked closely at commercial property sale signs, you have probably seen zoning codes, such as CP/SU or RE-33. These are zoning district designations, and an average-sized community will probably have dozens of them. They are used to indicate what kind of building, renovation or development can take place on a particular piece of property.

Savvy investors know in changing neighborhoods, zoning codes change as well. Take, for example, the recent increase in loft apartments in urban downtown areas. Once zoned for commercial use, these buildings are increasingly converted to residential space, which requires a zoning change.

When a community decides to rezone underused real estate for a different purpose, it opens up a new market to investors and developers. Keep on top of opportunities by scanning local newspapers for zoning board news.

In most cases, zoning codes go unnoticed in communities unless there is a plan to demolish a historic home or eliminate the founder’s statue to make way for a new road. New investors should consider attending a zoning board meeting in their community to understand how zoning decisions are made.

At zoning meetings, you may learn valuable information, such as what might trigger a challenge from the local zoning board and whether local inspectors are easy to work with. You might also receive another type of payoff, such as firsthand news of upcoming changes that may prove profitable for investors.