
If you are considering converting a house or residential property to a commercial business, there are important items to consider
Prior to purchasing a property or proceeding with costly renovations or detailed design work, it is important to understand that the local government where the property is located will have an approval process for residential to commercial conversions. Some of the required permits and upgrades can be very extensive and costly, so recognizing these risks early in the planning process is very important to ensure a successful outcome. Here are some tips to consider:
Residential business license: Sometimes the easiest way to accommodate a business or commercial use in a home is to simply apply for a residential business license. Most local municipalities will have allowances for this type of license and approval may not require major renovations. The application process will typically ensure the type of business is permitted under the local home-based business license requirements. If you are not planning to live at the residence or if your business intends to operate outside the allowable parameters for the local residential business license requirements, a conversion to a commercial business will be required to operate your business in that home.
Zoning Bylaw Considerations: If the residential business license is not an option, then you will have to examine the zoning designation for the house. This designation will be determined by the local zoning bylaw and it will spell out what commercial uses are allowed or not allowed on the property. Sometimes you will be lucky and the house will already have a commercial zoning designation. If it does not, you will need to file an application with the local municipality to re-designate the property to allow for commercial development. This process will require the payment of non-refundable fees and can take several weeks to a few months depending on the complexities of your project and the local protocols. We advise that you get help confirming these details prior to purchasing a property or prior to beginning any construction work.
Building Code Considerations: A house originally constructed for residential use was not built to the specifications required for a commercial business operation. Therefore, the change in use from residential to commercial will trigger a building code review by the local municipality. Existing buildings do have the option to use approved code-compliant alternatives when converting a house to a commercial business. These alternatives can provide suitable options (to avoid complete reconstruction of the house) for most, but not all, projects but they can represent a significant cost that needs to be budgeted for. We recommend working with a knowledgeable designer and contractor as early in the process to uncover any red-flags that you need to be aware of.
Proactive jurisdictions like the City of Regina have invested research and analysis to develop a guide that highlights common barriers and the code-compliant alternatives that are available for these residential to commercial conversion projects. You can view the guide below:
View City of Regina House to Commercial Guide
Questions about the sask real estate market?
If you are finding yourself wondering what the local real estate market is like anywhere in this province…. That is where we can help you. We at the Flatlands Real Estate Team know our stuff and we can provide guidance in all sectors of the real estate market including Residential Homes & Condos, Commercial Real Estate, Apartment Buildings & Multi Family Properties, Business Brokerage, and Farm & Acreage Real Estate. Feel free to reach out to us with your real estate questions, initial consultations are always free and confidential.