Tag Archives: commercial space

Rehabbing Commercial Space into Multi-family Units

When purchasing a commercial space and planning on making it into a multi-family unit can be a bot overwhelming. However, the end result can be very profitable because the building is worth more when converted into an apartment building. This is especially true when the building is located in a business/financial district when there aren’t may rental properties. So what should you do first before you embark on a project of this magnitude? Below are some suggestions to help:

First of all, conduct a study to see if this is a feasible project. If you understand what the local planning regulations are, then you can do this part yourself. You should also have a general idea of what the cost is going to be. Other questions to ask yourself are: Will the local authorities allow a change of use? As far as approved permits are concerned, what’s the precedent? Have nearby building been changed? If they have been, did it increase the value of the building? And finally, what kind of planning regulations could cause you an issue?

After getting in touch with a real estate professional to evaluate roughly what the building would be worth if converted, consult the local authorities. This department may have requirement such as disabled access or residential parking. Checking beforehand can save you headaches.

Next hire a contractor you trust to have the building thoroughly checked over. Get all the reports in writing after making sure they are detailed and signed. This way if you’re given bad advice, you have proof for a lawsuit if necessary.

Hire an architect to design the inside plan after showing the reports mentioned above. Include any changes that the authorities wished to be made.

Now is the time to get bids from professional contractors for estimates on labor and materials. Make sure that you have penalties built into the contract in case the work is not completed when promised. Check all credentials of whomever you hire.

Submit your detailed plan to the proper authorities.

Now you’re ready to begin!