Would permitted triplex, each unit licensed as own B&B be a HoteL

[Davido Davido]

Question for BP General Contractors & Developers.  What code enforcement or zoning board problems, if any, would you anticipate from building a properly permitted triplex as authorized in a medium density residential zoning, then licensing each unit as separate Bed & Breakfast business, but managing all 3 B & B’s by a single entity -essentially operating a small hotel without the commercial zoning?

Details, the multiplex design envisioned here would stack the residential units vertically instead of side by side, and unlike typical apartments or town homes, there would be closeable internal stairwells between each floor. The design is intended to allow each floor to be permitted and operated as a separate 4 bedroom, 5 bath living unit, complete with kitchen and private entrance doors to the outside. The design would also allow doorways to be opened to each floor's internal stairway so that any floor could, if desired, access the floor immediately above or below it -like internal stairways in a house. This arrangement provides the flexibility to turn 3 SFR's into the functional equivalent of any combination of 2 or 3 residences, or 1 very large home.

By permitting three separate residences, and licensing each residence as its own B & B business, all but one room in each living unit (required by code for the B&B operator) would be legally rentable for short term stays.  By opening internal stairwell access between floors, the entire building can be accessed much like a small hotel. The main advantage, to permitting such a building as a multiplex instead of as a hotel, is that Medium Density Residential zoning is available in many places where the commercial zoning required for hotels is not. MDR land and development costs are cheaper than commercial costs in multiple ways too.

I understand that under most zoning codes changing the occupancy of a building requires the building to comply with zoning and code for the new occupancy. For a hotel, there are a number of fire hazard improvements that would normally not be required of a residence -such as a fire suppression sprinkler system. However, if the triplex is properly permitted, and each B & B is properly licensed with all taxes paid, then each is being used for the occupancy originally permitted.  Seems to me that it would be difficult for a zoning review board to substantiate a claim that merely opening an internal doorway between separate residences, changes the occupancy. 

The extra costs of meeting the code for transient occupancy is not an issue for me.  It is likely to be money well spent.  Rather, I’m looking for ways to maximize income potential from parcels zoned medium density residential.  Your thoughts and suggestions are greatly appreciated.