As a property manager, one of the terms you might have come across is “upzoning”. In the world of real estate and urban planning, upzoning is a concept you must be familiar with. In this article, we’ll unpack upzoning and how upzoning can be a fantastic opportunity for growth.
What is upzoning and what does it mean?
Imagine you own a property where only 2-story buildings are allowed. Then the government says, “Hey, let’s make things interesting. You can now build up to six stories!”.
That’s basically what upzoning is. It’s like a change in laws that allows for denser or higher development than was previously permissible.
Now, if you are a property manager, this little shift can bring about some interesting opportunities and challenges.
- Property value boost.
Upzoning typically leads to an increase in property values. More development potential means more value. So, if you are overseeing properties in an area that’s being upzoned, you are essentially watching over a growing goldmine.
- Development Opportunities
With the green light to build denser or higher, you might want to capitalize on this by adding more units, and floors or constructing a whole new building. As a property manager, you might find yourself overseeing these developmental projects.
- Diverse portfolio
Upzoning can lead to a mix of property types within your portfolio. These can range from low-rise to high-rise units. Or from residential to mixed-use properties. This can enhance your expertise and market appeal.
- Long term stability
Upzoning can also lead to long-term neighborhood stability. For a property manager such as yourself, this means a steady inflow of potential buyers and consistent management opportunities.
Challenges of Upzoning
As much as upzoning can sound like a great opportunity that can open doors to numerous benefits for you, there are also many challenges that you need to prepare yourself for.
- Increased responsibilities
If new units are being added, your responsibilities will of course expand. More residents mean more maintenance requests, more amenities to manage, and more community dynamics to oversee.
- Infrastructure strain
More residents can also mean more strain on local structures. Think parking, water supply, or waste management. This also means an increased need to comply with HOA’s regulations. Being proactive about these challenges will be essential for you.
- Community relations
Upzoning can be quite contentious. Attending community meetings might see you playing the dual role of advocate and mediator. Finding the balance between what’s good for the property and what sits well with the community will be your daily drama.
- Financial Implications
Upzoning can also lead to increased property taxes or assessments for improvements. While this is more of a concern for the property owners, as a manager you will need to be well-versed in these shifts so that you can advise your manager and plan your budget accordingly.
As a property manager, make sure that you are familiar with upzoning pros and cons. Upzoning is all about embracing change and capitalizing on opportunities. To navigate this landscape with expertise and foresight, you can leverage the power of technology by integrating software that’s specifically designed for upzoning, and much more! ONR is an all-in-one software that simplifies property management for you. Visit our website today and book a demo to learn more!