When you want to invest in the lucrative Detroit real estate market, you need to put in your due research before you buy any properties. Part of your research should involve knowing for what uses the properties you want to buy are zoned.
The Detroit zoning laws can stipulate what kinds of structures you can build on your properties and what kinds of commerce, if any, you can conduct on them. They also help you identify the ideal properties in which to invest. Before you buy any properties in Detroit, you should first learn how to navigate the city’s land use and zoning regulations.
Understanding Detroit’s Zoning Regulations
Understanding the zoning regulations in Detroit can be especially critical when you pursue hard money lending on properties you intend to buy. This measure ensures you know the definition and purpose of the zoning laws when it comes to how these properties can be utilized in specific neighborhoods in Detroit.
The most common zones for properties in Detroit are:
- Commercial
- Residential
- Medical
- Industrial
When you know the zoning type for the properties you are interested in buying, you can determine if they are worth your money, in line with the projects you have in mind for them and secure enough for the lenders you are about to approach for financing.
You can also protect yourself legally and financially when you intend on buying properties to rent out and use as a source of revenue. You can identify what, if any zoning limitations, pertain to them and determine before you put any money down on them if they are capable of offering you the chance to get a good return on your investment.
Researching Zoning Codes
Researching the zoning codes for properties you want to buy typically is not that much of a challenge. You can find the zoning regulations for them by contacting the city’s zoning division or by accessing the Detroit zoning library online.
In fact, it works to your advantage as an investor to consult with the local zoning officials before buying a piece of property there. They can offer a wealth of information, as well as updated advice, about complying with the zoning regulations and avoiding legal and financial pitfalls that can cost you more money and time than you care to afford.
Further, when you keep an open line of communication between you and the city’s zoning authorities, you may boost the confidence of your lender. The lender may have every confidence in you that you know what regulations by which your project must abide and what steps you need to take to avoid risking the project’s profit and long-term success.
Determining Your Project’s Compliance
Navigating Detroit’s land use and zoning regulations calls for you, as an investor, to review regularly how well your project complies with them. Along with verifying the zoning codes for the properties you want to buy, you may need to consider if the property can be rezoned to fit better with your intended purpose. You may likewise need to consider applying for and pursuing a variance from the city.
If rezoning or variances are not feasible or worth your time to pursue, you should understand what it can mean to you, as an investor, to not comply with the zoning and land use regulations for your properties. You can determine if you can afford to pay any penalties the city may levy against you or if you can risk a lawsuit for non-compliance. You can use this forethought to decide if the properties you want to invest in are worth your money and if they have any potential for long-term success.
Getting Zone Approval
Depending on what kind of projects you have in mind for your properties, you may need to apply for zoning approval for them. You should understand how to initiate, pursue and finish this approval process as expediently and affordably as possible. You also need to learn how to acquire zoning permits from the city and how long it takes to obtain them.
Part of obtaining zoning approval for your properties can involve getting the community on your side for the projects in mind. You may not only need to convince the city about the projects’ viability and success. You also may need to convince the residents and business owners in the community where you intend on buying and developing properties.
Community outreach as part of the zoning and land use regulation navigation process can offer several benefits, however. You can foster the goodwill of the people and businesses that will essentially be your neighbors in the community. You may also improve your chances of winning approval from the city for your zoning requests and likewise alleviate concerns from your lender.
Abiding by Sustainability and Environmental Regulations
Finally, you must ensure your investments abide by any sustainability and environmental regulations the city imposes as part of its zoning and land use dictates. This information should be readily available to you as you research the zoning regulations for the properties you intend on buying.
They can guide you in how you can buy and use properties without negatively harming the local environment. They also give you boundaries to follow so you can avoid building structures, using materials or engaging in practices that could land you in legal trouble and cost you a significant amount of money in zoning fines.
You can also prioritize building and maintaining green spaces, if applicable, to comply with the sustainability and environmental zoning regulations of your properties. Complying with this aspect of the city’s zoning laws demonstrates to the zoning authorities that you are environmentally responsible and forward thinking when it comes to investing in properties in the city.
These measures are a few to keep in mind as you navigate the zoning and land use regulations in Detroit. Understanding what steps to take to comply with the local zoning laws can be challenging. Reach out to Upside Investments to identify what strategies to use and how to abide by these regulations as a Detroit real estate investor today.
