The Third Rule of Thumb and Zoning

One of the areas that you want to research during your due diligence period is the zoning. If you are looking at a property that is already self-storage, then you can look into whether or not you can expand. If the property has some vacant land, what can you turn that into? Can you add more self-storage or turn that land into boat or RV Parking? Is there a surrounding property that you might be able to purchase that has zoning that would add to the current project?

Start by finding out what commercial zoning allows for self-storage. Typically, self-storage is allowed in zoning codes (C-1) Commercial, (P.O.) Professional Office, or (MP) Manufacturing Park. You need to find out what is allowed in the area you are interested in investing in.

If your property is not currently a self-storage facility, then does the current zoning allow for self-storage? If not, what will it take to turn this property into self-storage? If you have to get a zoning change or a zoning variance, is your city or county open to self-storage. If you live in an area that does not like self-storage, then you will find it an uphill battle to get your project approved. On the other hand, if your municipality likes self-storage, it won’t be as difficult.

A quick way to get a sense of what your city will do is to call someone in planning and zoning and ask them about the property. Tell them that you are interested in putting self-storage in that location. If they say that there is no way, then you know you are looking at an uphill battle. On the other hand, if they sound positive, then there might be a chance. You may not want to make this call until you have the property under contract so that you don’t lose it to another investor.

Planning and zoning has a comprehensive general plan that they follow. This plan has gone through and determined what the highest and best use is for each property in the city. When you are trying to get them to make an exception for your property, you have to find a way to show them that your change is not only in the city’s best interest, but it is also the highest and best use under the current circumstances. If you can do this, they are likely to approve your change. If you can’t, it is unlikely that you will be building self-storage in that location.

Planning and zoning makes variances on properties all the time. Don’t be afraid of asking for one. Find out what the process is in your city and how long that process takes. You can ask the city where they would like to see self-storage and then start looking in those locations. This might give you a head start on locations that no one else has considered. As always, happy investing.