Making Zoning Work for you When Trying to Sell

Make Zoning Work In Your Favor.
Zoning is the body of law that encompasses
the rights and privileges granted by a local jurisdiction for the
legally allowed use of the property. Little, if anything, affects
your value more than Zoning...to the good or bad.

As a former zoning administrator for 12 years in two
different jurisdictions near Atlanta, Georgia, I’ve seen the
benefits and the damages zoning laws can produce. As a believer in
limited government control, I view zoning as a “necessary evil.”

As an investor, I prefer to purchase property that is
in an area with strong zoning regulations for several reasons:

Strict zoning laws help maintain property values.

I personally have purchased properties in a
jurisdiction that is known for strong code enforcement, specifically
Alpharetta, Georgia, a suburb of Atlanta. A code enforcement
officer can normally see a problem, knock on the door, and the
problem is resolved in a few days.

An effective code enforcement officer is like having
your own maintenance man running around with a gun and badge
requiring your tenants to keep the place clean. That’s a valuable
service that I take advantage of anytime I can.

One particular code enforcement officer that I know
has been a huge asset to me He keeps an eye on the community and
keeps it cleaned up.

An occasional phone call from him about an erosion
problem, downed trees, etc. will also get me off my duff and correct
the problem. Befriend your local code enforcement guy, and he will
be a valuable asset for you in your constant battle against
maintenance problems.

Strong zoning laws tend to regulate the supply and
demand market cycles. A community with strong zoning laws usually has
a lot of obstacles for developers to overcome in order to start
developing. As a developer, I obviously haven’t liked this part of
government control. But as an investor, it helps to protect the
status quo.

This government control decreases your competition by
increasing what we call “barriers to entry.” This barrier
actually helps preserve and protect your land value.

The jurisdiction will require numerous public
meetings, require ad nauseum permitting meetings, and will generally
put the developer through a hair-pulling-out process before he can
build more real estate. It is this slow process that makes it hard to
develop in most communities, and this slow process will be to your
advantage as an owner of existing land.

www.BrianPattonCommercial.com Brian Patton, CCIM 770.634.4848