Might a residential unit be rented out to a company that doesn't see clients but just needs dedicated office space? I know of one previous residential space nearby that has done that.

After reading through all the commercial use ideas, that thought came to mind.

Can you think of any cons to using a residential space as commercial? What types of company would need that type of space? There would be a restroom, kitchen for a breakroom, coffee, etc. and the place I'm thinking of would have two rooms to use as offices or one room if I decided just to rent out one room as an office space.

Dee Ann,

I LOVE your thinking.

MY town clamps down hard on zoning.Traffic and parking would bring a complaint from a neighbor.

BUT if we signed a residential lease I cannot make people sleep there.

Then multi family zoning would come into play.

Right now I am getting PRIMO high rents as residential.

Dee Ann,

I LOVE your thinking.

MY town clamps down hard on zoning.Traffic and parking would bring a complaint from a neighbor.

BUT if we signed a residential lease I cannot make people sleep there.

Then multi family zoning would come into play.

Right now I am getting PRIMO high rents as residential.

I am getting decent rents currently, but the tenant pool is getting worse. I'm thinking this to be another way to advertise that may bring in better tenants. Plenty of parking in the neighborhood, ad most of the year two cars in front of the house.

Most City government won't allow foot traffic and autos in a residential location. So if you want to rent out a residential rental as office space, you may have issues.

I had a mix used 3 level property. 2 stores on the bottom level. 2 apartments on the second level. And 2 apartment on the 3rd level.

I converted the middle second floor to offices with a new stair case along one side of the building to the front sidewalk.

I did this with permits and the building behind me never stopped complaining. I was there and no extra noise or concerning traffic was present. So when a 3rd level apartment became vacant, I got a family with kids to move in and allowed them to use the rear parking lot to pay basket ball starting 9am on weekends until 9 pm at night.

We have a German Company that has a small factory of 400 employees near my small town. They have two houses that the company owns and they bring over engineers to stay in states for six to 12 month stints.

When COVID hit, I thought this is an opportunity - they can't send over any more engineers so I could buy these places. Well that is true, but they were not allowed to send the two families back either so they didn't want to sell them.

I like your creativity.

Perhaps your first stop should be your insurance agent to see what he says.

Mine says a residential tenant can have a home business as long as no customer or employee ever sets foot on the place. So, right off the bat, your regular rental insurance won't cover you. Insurance companies don't like it when no one is living in a residence.

There is insurance for businesses, so there must be some sort of policy you can buy. But check and see what the terms are.

If the house is used as an office with 4-5 employees going in and out, besides their cars, there might be a lot of UPS type of traffic, papers and documents going in and out.

I think it is worth looking into.

Dee Ann, I too like the way you think, so I'm going to play along as best I can.

So with no clients, there wouldn't be any concern with neighbors complaining. It sounds like this would be a "home office away from home" type set up. I think it could work as long as neighbors don't wise up to what's going on and/or don't care. Keeping it on the low down would be critical.

I'm asking the same question as you though: who would need this space? The characteristics would be:

1) Someone who needs to get away from home distractions, perhaps a working parent of small children that are still at home and would distract from the typical work from home office scenario.

2) Storage for inventory: possible an Etsy, Ebay, or Amazon reseller? One or two deliveries / pick ups per day probably wouldn't caused too much heartache for neighbors since most of them get that too.

3) Craft space? A small units with a couple of room for yard, supplies, etc.

4) T-shirt/printing shop with online sales only? People email in the pictures: seller makes them at the house, ships them out via post office/FedEx.

Just a few ideas.

Keep those creative juices flowing! The people who get clobbered are the ones who expect to do everything the same and get the same results. Times, the are a-changin'.

Btw, to be clear, I'm not 100% exiting residential rentals: those are still my profit center work horses, but I'm only buying new commercial. I'd consider short term flips in residential only...buy, hold, sell after 366 days to avoid short term cap gains. But there are few deals in that area right now. Finding undervalued commercial space is easier.

Ann - Had a tenant 50 something who was a mortgage writer - when she initially rented she went to an office but IDK she was let go or what. She asked about doing it from the apartment - I had reservations even with her renters insurance - what if someone tripped & fell while seeing her for an appointment ?

She said she didn't let anyone into her home she would say living alone etc. etc.

She asked it she could have a handyman put up a bigger mailbox as a drop box for clients to leave paperwork on porch.. After speaking with my insurance company seemed no different then papery leaving paper on porch.

A few times while at property saw a car pull up in from of house one person hop out & leave paperwork never even parking the car.

She rented the second floor and there was a finished attic space - which in the lease says NOT to be used as bedroom space in anyway as there is no fire escape

we explained area as workout space- - dressing room / sewing - crafting area - storage. She turned it into a cute office space - she asked permission = shelves, carpeting, paint - turned into a great work space.

After she moved I adversities it blah blah apartment with secluded office / creative area. I also asked $350 more then when she left - I had it rented in a week with numerous calls - this was Feb 2020 right before everyone was working from home

Lots of good feedback here! You've all built me a hefty TO DO LIST.

SID: thanks for ideas to piggyback my thoughts! Will look into some of them.

OREGON: My thoughts are along the lines of your insurance company. No employees or customer foot traffic. Since there are tenants in the lower, someone does live in the building. Yes would put a "what if" to them.

MIKEA: You nailed it! Our place IS an older duplex located on a busy thoroughfare street a couple blocks off an entire street of commercial businesses and eateries. I believe it is zoned mixed use..think I checked years ago, need to recheck. There is a Church next door and Adult Daycare across the street from the building.

PLENTY: That is an interesting idea! I could do that at my house - a duplex where we live upstairs and have a two bedroom, unit downstairs where I set up my office, fully equipped. I don't use it often, mainly when I really need to spread out, like to prep my taxes. I also have a printer upstairs, so could have two office spaces downstairs.

At one time, I wrote resumes and curriculum vitaes for upcoming doctors graduating from the local Medical College, maybe could parlay that into the mix again.

For several years I sold wedding invitations from home-put a shingle on the house, got leads from work, the local newspaper engagement announcements or noticed engagement rings on bank teller fingers and gave them my card. No neighbors minded; the ones we have now are very laid back and could care less. If they did, I could always go to my customer's homes. That business might not fly; many couples doing their own invitations. Our next door neighbor has a photography business tho so maybe we could work something around weddings together.

Nope, we do not want people living downstairs from us anymore. Been there, done that for 35 years and my nerves cannot take it anymore, plus:

1. The tenant pool is not as it used to be.

2. My husband wants the extra fridge for beer and cold brew.

3. It's nice to have two bathrooms, one upstairs and one downstairs.

Just remembered...

My town's zoning allows me to have one employee working in my home office in a residential zone.

Since I have two workers I told the one "if anybody asks you are the maid".

When I left my job years ago and was working my rental business from my home, I was amazed at how many work trucks in service people and delivery people were up and down my street During the day. When I was away at work I never knew all the things that were happening during the day.

I have a very nice house in a nice neighborhood that I bought to flip. But over the years it has turned into a storage facility because it has an oversize garage and no steps, close to my house and centrally located to the rentals.

BRAD