Property Taxes - Converting commercial to residential - HELP!

Property Taxes - Converting commercial to residential - HELP!

Rental Property Investor · NJ · Member since 2018 · 8 posts · 6 votes

Hey All,

We purchased a multi use property in Union County, NJ that included a 2 story home on one side and small warehouse space (more like a glorified garage) that is attached to another single story building previously used as an office building. We have since converted the office space to a live-in residential space. The space is currently classified as 'commercial' so we are paying commercial property taxes. Looking for any advice or feedback regarding converting it to residential. Thanks!!

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  • Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
    7y

    @Susy Santos

    did you get a zoning permit before starting the work?

  • Rental Property Investor · NJ · Member since 2018 · 8 posts · 6 votes
    7y

    Hi @Christopher Phillips. We haven't had to do any work that required a permit. The office space was basically a handful of rooms, 1.5 baths and a small kitchen area. My father sent in an application to the zoning people and they denied it. I don't think he provided enough information. I'm taking this on for him but have zero experience with this sort of thing. I'm going to give the zoning office a call to get more information but wondering if anyone else has had any experience with this or know of any potential issues that may arise. 

  • Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
    7y

    @Susy Santos

    Every municipality has their rules. 

    Usually, first step is to speak with the local planning and building department about rezoning.

    Then you have to check their requirements and if you need a variance. They can often get worked up about things like parking.

    The local municipality will usually have a list of steps on their website.

    Near me on Long Island. It can take several steps. Submit the application with fee. Often, if you need a variance, you have to attend a hearing with the planning board to request the variance. Wait for a decision. Appeal any issues. 

    Can easily take a year or more.

  • Rental Property Investor · NJ · Member since 2018 · 8 posts · 6 votes
    7y

    Thanks for your feedback @Christopher Phillips! Sounds like this might be a big headache, but staying positive. Wish me luck!

  • Investor · Durango, CO · Member since 2019 · 33 posts · 4 votes
    5y

    @Susy Santos Hello Suzy, I am looking to do the same thing and convert a basically wide open commercial building to a 4 unit residential building! What was the outcome on your zoning permits, timeline, and property tax dealings?

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