Single Family Residential (SFR) is a designation used to categorize how a property can be used on a daily basis by the people who own that property. When you have property type SFR it’s meant to be used as a living space, and not for multiple families or a commercial venture. The zoning for that entire area where the property is located is generally going to be similar, although there are sometimes single and multi-family homes next to one another. Some areas are also residential and commercial in the way they are zoned. Here are some considerations to look at when it comes to buying an SFR property and looking into zoning requirements and regulations.
What does SFR really mean?
SFR, or Single Family Residential, means that a single family will be expected to live in the home, and it’s not zoned as a duplex, triplex, or other multi-family option where there will be more than one unit. While people who are unrelated can certainly live in an SFR together, and it doesn’t have to technically be for a family, the zoning stops people from dividing a house into a number of apartments, for example, and then letting a number of different families live in those apartments. If you buy an SFR property type you need to be sure how you plan to use it, because you don’t want to go against zoning laws and risk potential financial and legal trouble.
What can you do with an SFR space?
When you buy a single-family home, you can do anything you want with it as long as those things go along with residential living. You can’t turn it into an apartment complex or a business, but you can remodel it and make the kinds of changes you want to make for yourself and your family or anyone else who lives with you. That’s important since the zoning mostly dictates what is done with the outside of the house and the overall use that the property is designed for. Within those boundaries, you have options to explore and consider.
How is it different from a multi-family dwelling?
A multi-family residential dwelling (MFR) can be used to categorize anything from a duplex to a large high-rise full of apartments. If there are multiple units there, it’s a multi-family dwelling, and can be used as such. You don’t have to use it that way, though. Some people buy a duplex, for example, and use it as a SFR property by knocking down some walls, taking out the second kitchen, and making other adjustments to turn one type of property into another type. That can work very well for some people, depending on how they want to use the property and what they’re really looking for.
Can you run a business in an SFR property?
Whether you can buy a home that’s designed SFR and run a business from it depends on the business. Someone who wants to turn their SFR into a retail store is likely going to be in violation of zoning laws, while someone who works from home over the internet probably will not. There are many zoning waivers for various types of business activities, especially for those that take place online, but it all depends on the type and scope of the business, along with the particular location of the home and the zoning laws that are in place there. Be sure to check into these zoning laws before you decide to purchase any SFR property, so you’ll know you can use it the way you have planned to.
Does your zoning need to be changed?
The zoning of an SFR property is very important since owning one restricts how it can be used and you want to make sure you’re not operating a business out of a home if that’s not legal in your location. In some cases, your zoning can be changed. If there are many other multi-family or commercial properties in the area, and the entire location is essentially “mixed-use,” you may be able to get a zoning change or a waiver to do something different with your SFR property. However, changing zoning isn’t always easy, and if your request to do so is denied you may find that you can’t do what you originally hoped with the property. That would be frustrating and upsetting, so it’s much easier to check into the issue first.
Does every city handle things the same way?
Keep in mind that every city and town is different in the way they handle zoning requirements and waivers. You may live in an area where you can easily work from home, but if you move to a different location it may be that city or town doesn’t have the same type of zoning designations. Because of that, you could end up spending your time trying to get permission to do something that you used to do with no problem in your past location. By checking with your real estate agent and talking to the city before you buy, you’ll make the right decision on your SFR property.
