Occupancy and Zoning

Occupancy and Zoning

In Utah County, cities typically restrict occupancy to one couple, or three unrelated singles per unit.  For example, with a legal duplex, you can put up to 6 singles, 3 per unit, or two couples total.   However, there are several condo complexes just south of campus (on condo row between 700 N and BYU) and some newer complexes (like the University Ave complex , and the Lanai), that allow 4 singles per unit.   The only complex that I know of that allows 6 students, is the Brownstone. Obviously, the higher the occupancy the better the cash flow.  These days, the occupancy on a unit has to conform to the original zoning regulations and cannot be changed.  Unlike the past, complexes with a higher occupancy that have been built recently have had to provide off street parking for every occupant.

In the past, I’ve sold a several single-family homes near campus that were zoned with a higher occupancy, and had an occupancy of 6 per unit.   The problem with the higher occupancy units is that the students have to share a room, which isn’t as popular as when I was a broke cougar year ago.   Investment note: during the spring/summer months,  higher occupancy units are harder to fill, because you can find private rooms during spring/summer for as little as $150 a month per student.

The best way to confirm occupancy and zoning is to have your agent (hopefully myself), make any offer contingent on your approval of a zoning verification.  You can get a zoning verification at city offices for $20. It will tell you the properties current use and occupancy restrictions.