What You Need to Know About Home Business Zoning

You may have heard the expression, “It’s better to ask for forgiveness than permission.” Well, this doesn’t hold true with property zoning laws and home businesses.

Local zoning laws can ban or restrict business licenses and operations in residential areas. Before you hang out your shingle, learn more about zoning regulations.

What is Home Business Zoning?

Zoning definitions tend to be quite similar across various county and local zoning codes. For instance, residential zones are often differentiated into categories like R-1, R-2, and R-3, where R-1 represents the highest density of population.

To locate home businesses in a residential area, you need to research the zoning laws established by the zoning department or board of the governing entity. For example, even if the area is not located within a business zoning area, you may be able to conduct certain business activities from your home.

How Zoning Laws Work for Home-Based Businesses

Within the language of most zoning codes, the type of business activities and business licenses allowed are defined. Home office zoning laws typically detail and define the requirements for a “low-impact” home-based business.

For example, if a home business requires no increase in “traffic” into a neighborhood, it could be considered a low-impact home business.

For example, let’s compare two people who have a home occupation, which is building decorative wooden clocks. Both construct the clocks in the basement of a home. Once a week, one person packs up the clocks and sells them at a local Farmer’s Market. The other person posts pics of the clocks on social media, inviting people to buy them at the house.

A low-impact home-based business is one that causes no increase in vehicle traffic. Home occupations that require traffic, such as professional offices, retail store type activity, or dog groomers, aren’t considered low impact by most local planning and zoning offices. A low-impact business typically may not have employees.

How to Check Your Local Zoning Ordinances

Within a state, local zoning laws can be set by a county board or by a town or township within that county. Most cities also have their own specific zoning regulations. Begin your inquiry with the zoning and planning officials in your area. What happens if you discover that your plan for a home-based business is prohibited in residential zones due to zoning ordinances? If you believe your home business should be permitted despite these local regulations, there are avenues you can pursue.

A county or local zoning board can grant a variance. Wondering “What is zoning variance?” It’s a type of special exception that may allow you to use your home for business purposes. You would request that the zoning board hold a public hearing regarding your request for a special exception. The board will notify your neighbors about the upcoming hearing, and the neighbors will be permitted to attend the meeting and voice their support or concerns.

A great majority of special exception hearings for home occupations are successful, especially in many cases if the applicant has legal representation – an attorney knowledgeable in zoning law. A board may grant a permit but state “with the following restrictions,” such as no signage on the residence or no services before or after certain hours.

Other Restrictions You Should Know About

Zoning law can be a maze of regulations. A homeowners association may supersede local ordinances by adding certain types of rules and restrictive covenants that preclude any commercial activities within its boundaries.

It can be valuable to consult an attorney. When you search for an attorney, check your local news source and see who serves as a solicitor or lawyer for local planning and zoning boards. That’s the type of attorney you should contact.

Other Types of Zoning

You’ll have more freedom on how you use your property in other zoning designations, such as Ag (agricultural) or Rural (R), generally for properties with a location on a larger piece of land. Industrial zones are solely for industry – not for residences.

Some counties have no zoning laws. For example, a large part of Maine is designated as an “unorganized territory” and has no zoning laws regarding businesses. Some rural counties have no zoning laws you need to know about.

A city most often has its own set of rules for any commercial enterprise that will operate from a house. The rules may vary in certain areas, especially in areas of high density, such as high-rise apartment buildings or row homes (homes that share a common wall). Each location in a city may have a certain set of regulations defining the types of businesses and services that are allowed.

FAQs

Can an apartment be used as an office?

Depending on local ordinances, it’s possible, even in a city. Check with your city council zoning ordinance. The office would have to be a low-impact, work-from-home business with no employees.

Additionally, if the apartment is rented or part of a condo or homeowners’ association, such usage may be subject to specific regulations governing those properties. Before you begin, it is advisable to contact the appropriate authorities.

Can you run more than one business in your home?

That can vary based on the size of the home. Most local zoning codes clearly define the allowable square footage for a home business zoning, expressed as a percentage of the total square footage of the home.

For instance, zoning regulations may indicate that a home-based business can take up no more than 10% of the total square footage of a residence. If a home measures 1200 square feet, the home business can function within 120 square feet or a 10 x 12 room.

If you do designate an area for a home-based business, remember you may be able to claim that on your taxes. However, that can also increase your likelihood of being audited.

Should you try to get around local zoning laws?

No. A member of your community could reach out to the local zoning authority to report you. This could result in a fine, and it’s highly likely that your business will be shut down as well.

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