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How Your Lot Zoning Could Be Advantageous

Dustin Edwards • November 2, 2022

Zoning Can Help Your Rental Property

When buying a single family home as an investment property many new homeowners tend to overlook an important element of their new property. Their lot zoning, being aware of the zoning lot of your property can open up the possibility of greatly increasing the income that property can provide. 


Learning what zoning your property was built on can help you maximize the income of your Long Beach rental property to its fullest potential. Join me as we explore the advantages of knowing your lot zoning.


What is a Zoning Lot

In this case we’re talking about zoning lots as it pertains to the ability to build more units on your property. As an example, you may have purchased a single family home which was built in an R-2-N zoning lot, meaning it can be easier to add a second home, and an ADU. This has the potential to increase your income extraordinarily. Whereas if the house you purchased was built on an R-1-N zoning lot you may be limited to adding an ADU.


Generally speaking, Long Beach residential zoning lots are divided into 4 main zones. R-1 zoning lots support single family homes. R-2 Zoning lots support two-family residential homes. R-3 zoning lots are classified as low density multi-family homes. R-4 zoning lots are classified as dense multiple residential units.


Zoning Lots in Long Beach

In Long Beach many homes are built on zoning lots classified as R1 or R2 zones. Using the traffic circle in Long Beach as an example. The zoning map shows that south west of the traffic circle are R-2-N zones. Like previously stated R-2 zones make great investment properties because they can have more units such as a duplex and an ADU. This gives you the potential for 3 separate incomes on a single property. 


Immediately north of the same traffic circle are many R-1 zoning lots. Though not bad investment properties, these do not have the same potential income as properties built on R-2 zoning lots. Though these typically cost less than a home built on an R-2 zone.


How your Zoning Lot can Increase Your Equity

Zoning lots that allow for more buildings allow for more equity. A simple way to look at it is if you purchase a  house worth $1,000,000, each square foot is valued at $1,000. In an R-2 zoning lot, where you can build a second home, you would have the ability to double the living space, therefore double the value of each square foot. This in turn increases the value of this home to 2,000,000 while not investing another million to build. This means you would have 2 or more incomes from a single property. As well as equity you can take out for future investments including; purchasing more investment property or building more units on your existing properties.


Learning what zoning lot your property is on can drastically increase the potential income yield of that property. If you need help finding out what zoning lot your properties are built on, are looking for a high quality
full service property management company or if you require any further information on the services they provide call us at (562) 888-0247 or feel free to fill out our free rental analysis to see what your rental could yield today.


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By Dustin Edwards December 19, 2024
If you're properties are suffering from lack of heating this winter, these 3 common issues could be the cause.
By Dustin Edwards December 12, 2024
Although Southern California’s winters are typically mild when compared to other parts of the country, tenants still value a warm home during the cooler months. Taking steps to maintain a comfortable living environment shows your tenants that their needs are being prioritized. This is crucial for tenant satisfaction, especially during the holidays. Below are three methods to help keep tenants warm during the winter season. Maintain Heating System It's required for landlords to provide rentals with a working heating system, however, it's not uncommon for these to fall into disrepair either because of lack of maintenance or negligence. Scheduling regular inspections and maintenance before the coldest weather can help to ensure the heating is reliable and efficient. Cleaning air filters, and checking for cold spots, or irregular noises can help prevent small issues from escalating into expensive repairs. Preventative maintenance can help to reduce the chances of inconvenient calls for emergency repairs. Being proactive with your maintenance can also help you protect your investment while earning goodwill from your tenant. Another factor that can affect your heating system is drafts around windows and doors. These drafts can cause your heating system to overwork which makes the system less efficient, and reliable and ultimately reduces the lifespan of your heating system. You can address this by inspecting the seals around doors and windows for gaps or cold spots. Replace worn-out seals and caulking where it's needed. Offer Smart Thermostats Consider providing your tenants with a smart thermostat for energy-efficient heating. This can not only give tenants control over their comfort, but it's also a great tool to reduce energy usage. By providing this upgrade to your tenant, you show a commitment to your tenant’s satisfaction which can in turn result in a long-term tenant. These kinds of devices definitely benefit your tenants, though they can also contribute to the longevity of your rental property as well. Additionally, you can give your tenant a smart thermostat as a holiday gift . This can show your tenant that you’re not simply collecting rent while protecting your investment. Reverse Ceiling Fans The direction in which a ceiling fan rotates is oftentimes overlooked, and it can have a great effect on the temperature of a home. A ceiling fan is typically seen as a way to cool down a home during the hotter seasons without using the air conditioning . Reversing the spin of a ceiling fan can help to circulate warm air more efficiently during the cold season . This is because warm air rises, and a fan rotating clockwise will push the warm air back down helping maintain warm temperatures. Most fans have a switch on the motor and it is easily accessible for most people with a step ladder. This easy adjustment helps reduce the need for your tenant to use the heating system. Tenants will notice a more consistent and comfortable temperature indoors. This should also help reduce costs on their energy bill. Reversing the rotation of the ceiling fans also takes some of the strain off of the heating system. This helps to ensure it operates efficiently for years by reducing the wear and tear on it. Taking proactive steps this winter season to ensure your tenant’s comfort demonstrates a landlord’s commitment to their tenant’s comfort. A comfortable tenant is a satisfied tenant , which can lead to a long-term tenant and steady rental income. Consider it a small investment for long-term success. If you need help keeping your rental warm or managing Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .
By Dustin Edwards December 5, 2024
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