Zoned as Duplex, rents as a Triplex

[Andrew Whicker]

Hi,

I'm sure many of you have faced this issue before. I got an offer accepted on a Triplex that is zoned as a Duplex. The owner says the house has been rented this way for 8 years without a problem. I'm wary. I also don't need to open a box of worms by asking the city if the house is okay by using the exact address. I don't need to throw the seller under the bus.

So how do I go about this? I understand, that in these parts, it's somewhat common to have mother-in-law houses and so forth that do NOT meet zoning requirements and operate that way for years. It seems pure luck, which I'm not interested in. This is my first property and I will be owner / occupier.

Is there anyway to ask the city without... asking the city?

Cheers,

Andy

[William Hochstedler]

"Non-conforming" probably means "legally non-conforming" or grandfathered. This just means that the duplex use does not conform to the, most likely, single family zone. Also, look at the actual non-conforming certification for number of legal units, not the property type on the tax roll summary. Most likely the listing agent has the info correct.

We've seen a lot of these situations up here. I've taken this question to the city as a hypothetical and they are confused when the building meets total occupancy limits. Our code only addresses occupancy per unit, but does not define unit. We have 4-plexes listed as triplexes that are all one BR units. The city allows a single family or up to 3 unrelated adults/unit. Four couples in four units are less than the city maximum of 3x3. I haven't explored a duplex with one unit as a mother-in-law apt although it should be legal as well (but much harder to rent).

I'd start by calling the city and telling them that you are considering purchasing a grandfathered multi-family property and was wandering what the occupancy limits are in the given zone. If the unit configurations would comply with duplex occupancy as a triplex, you should be fine.

Up here, parking is far-and-away the biggest red flag. Is the parking ample? Is the property surrounded by other multifamilies or already a problem in a primarily owner occupied neighborhood? Is it a functional triplex or a duplex with a band-aid 3rd unit? Would it be easy to convert (back) to a duplex if need be?

I agree with @Joel Owens though. The asking price should reflect duplex both in comps and cash-flow because that seems to be what it is legally recognized as.

Could be a great opportunity and good for you starting with your residence as your first investment!