CAN CORPORATE BODIES USE RESIDENTIAL PROPERTIES AS OFFICE SPACE?

The increasing rate of the top-rated areas in the corporate sector is something everyone is concerned about. People decide to turn their residential areas into office space, but several aspects are related.

However, turning your residential areas into office space isn't easy as you think of it. Let us look into a complete guide regarding changing your corporate bodies to residential properties or not and how to trust & estates law will affect it.

The use of residential properties as office space:

The market spaces prices are not affordable for everyone, so changing your residential space into office space is a viable option for people with a tight budget. This has become a common practice for people nowadays as it saves up on the high cost of commercial space and time-saving options.

However, it would help if you learned about the aspect that there is no specific provision for converting residential property flats to commercial ones. Also, the conversion shouldn't be a nuisance to society. If you consider changing your office, you need to pay commercial property tax on the residential property. The role of law is significant in this aspect, so it is better to consult a lawyer who can help with proper guidance whether you can change the space or not along with the commercial tax aspect.

According to the Law:

According to the law, you need to get permission from zoning rules and housing society management to use or rent the residential property for commercial activity. Each state has a different set of rules regarding property use, so you need to learn about trust & estate basics firsts.

The conversion of residential space to commercial property has been changed accordingly, and this law varies from state to state. In some states, people are allowed to use 30 percent of the house for commercial use but only by professionals such as lawyers, chartered accountants, and doctors.

Even if your state allows residential space for commercial use, you still need to get approval from the housing society before you practice conversion. You might need to get permission from the local municipal authority for the industries' different categories and save yourself from troubles.

Nevertheless, once you have approval for your residential property for commercial use, it will be marked as commercial property, and commercial tax is levied on it. If you are running a trust & estate firm in your residential property, you need to pay trust & estate law firm tax surely.

Things to consider before using the residential area for commercial use:

One needs to be thoughtful regarding changing the aspect of residential areas into commercial use. There are a few considerations that you must pay closer attention to.

§ The shop requirement and establishment license from the municipal authority is inevitable, so ensure that you got that on time.

§ The application should be made after contemplating that the area needed and the type of business you are willing to carry out.

§ There are different charges imposed upon the property by the civic body for water and power supply based upon the business activity's property size and nature.

These are some of the necessary considerations that you need to take care of when choosing to convert your residential area into a commercial one for use. Another fact to note is that several professionals don't come under this practice and have different rules, so you need to be careful about id. Those who continue painting, yoga, dance, or tuition classes in their residential areas aren’t held liable to pay the commercial tax. Lastly, it can be an excellent choice for people willing to save on the commercial building's rental space. Seeing the exorbitant prices of the commercial space, it is accurate to choose for conversion.

What if one is running an Online Business?

The trend of online businesses is at its peak, and it is becoming global as well. Nevertheless, if you are running your corporation as an eCommerce business and don't hold a physical office, there are no rules imposed on you. For instance, running trusts & estates online is a great idea, and you don't have to pay any commercial tax on the property, and you are free to access the business from any space without needing any approvals for it.

The online business is not supposed to meet clients in person as you thoroughly access it online. If you have a team working for the office, they can come to your place without permission. However, make sure your space isn’t marked as commercial space.

Henceforth, we can conclude that running an online business from your residential areas doesn't require you to go through the hassle of converting a residential property into a commercial one for commercial use.

Bonus tip: You have gone through the necessary details regarding conversion, but here is a bonus tip for you. Ensure that you are taking assistance from an experienced attorney before going through the procedure of conversion. Having the guidance of an experienced attorney will enable you to work better in a traditional way and avoid unnecessary clusters.

The Final Verdict:

From the details stated above, we can conclude that it is legal to use your residential property for commercial use. The law of conversion varies from state to state, so ensure that you are well informed regarding the law to avoid any hassle later. The use of the space is fair to be done by professionals only, such as doctors, attorneys, chartered accountants, and others. The housing committee has considerable authority in the process of conversion, so ensure to take necessary approvals.

We hope the details stated above make sense to you in learning about converting residential property to a commercial one for commercial use.

Author: Amanpreet Kaur