Making a profit on residential land

[fierojoe]

Hey guys, I have a question... I'm putting together the numbers for building my studio and obviously land is a key part of it. I don't know if any of you would know what the law is in Ohio, and to be honest I don't really know how to find out, but what about putting a studio on residential land? My current layout includes an apartment on the second floor of the non-studio side of the building for me to live in, so how can I do this? So I need commercial land to legally have clients? The studio is my first goal and eventually I would like to build a house on the same land seperate from the studio and use the apartment for traveling bands to stay in(after I VERY securely lock up the studio for the night) or rent it to a buddy or whatever.

 

[Michael Jones]

Hey guys, I have a question... I'm putting together the numbers for building my studio and obviously land is a key part of it. I don't know if any of you would know what the law is in Ohio, and to be honest I don't really know how to find out, but what about putting a studio on residential land? My current layout includes an apartment on the second floor of the non-studio side of the building for me to live in, so how can I do this? So I need commercial land to legally have clients? The studio is my first goal and eventually I would like to build a house on the same land seperate from the studio and use the apartment for traveling bands to stay in(after I VERY securely lock up the studio for the night) or rent it to a buddy or whatever.

Well, of course you'll need to verify Local Zoning Codes for land use types, and specific Deed Restrictions, but...

If you consider a home office, obviously an office isn't a residential land use, but people have them. In fact, I work almost soley out of my home doing civil engineering. Any "clients" that come to see me, are "invited guests".

Since your studio isn't really open to the public, that is, anyone wishing to record there is "by appointment only", you could consider studio clients in the same manner.
Thats all fine and well, and legal, at least in my neck of the woods. Where you could possibly run into problems is if your studio becomes a nusance. (sp) You know, loud music at 3am that keeps the neighbors up, or a street full of cars on a consistant basis.

You'll also need to look into any deed restrictions that may be imposed. Some things are specifically forbidden; things like pig farms, dumps or junkyards, even recording studios.

Zoning regulations can be checked at your local "City Hall".

Deed Restrictions are on record at the "County Courthouse". A deed or parcel number or Subdivision name & Lot Number and Block Number, for your specific property, will be required information to have prior to heading to City Hall or the County Court House. These can usually be found on your property tax reciept.

Some cities have Zoning Maps available on-line. That map will tell you what type of zoning the property is under, and the zoning regulations will tell you the permissible uses under that type of zoning.

 

[Disco_Dave]

Obviously being in the UK I cant comment on the law in Ohio, but one word sprung to mind when I read your post...wait for it...its reallly exciting.....ready...OK....INSURANCE!

Seriously though, you will need commercial insurance that covers you against damage to your property and more importantly covers you against any accident that occur on your property. The law usually makes great exceptions between home and commercial use, and you are often far more liable for any accidents that happen on a business premises than you are for ones that happen on a residential premises.

This is probably obvious to you but I thought i'd say it anyway.

 

[frederic]

Joe,

Michael said most of what you need to know, your local town hall records are the way of determing zoning laws and the tolerance your neighborhood will have for a home-based business.

This is especially important if you reside in one of those "communities" where some management company, or elected homeowners from the community, like to pretend they're important and inflict all sorts of crazy rules.

Now onto new stuff:

Insurance is another matter altogether. If you are able to run your studio as a seperate business, make sure you are properly insured, as some home owner policies will not cover equipment slated for businesses, regardless of location. You need a seperate policy. Either way, they are going to want pictures, serial numbers, photocopies of invoices, stuff like that, to prove you have $X value of gear in your studio. This is for equipment.

You also need liability insurance, in case some dipshit slips in your studio, cuts his head open on an exposed digital delay knob, then sues you. This is easier to obtain if you run a legitimate business, but then of course you'll be required to follow safety guidelines such as non-slip flooring, exit signs by the doors, two exits, you get the idea. Possibly even handicapped parking and ramps depending on your local laws. Maybe even on-ceiling sprinklers. Some local municipalities like to exhibit the amount of power they think they have.

There are drawbacks to running a studio out of your home "on the sly", as well as running a studio out of your home as an official business. Its just a matter of figuring out risk versus cost, then making an intelligent decision based on the facts.