Expert: Jessica Bryan - 7/5/2007

Question
QUESTION: Hi there... quick question... Is it possible to buy or lease apartment building in San Francisco,ca and convert it to a small hotel?

ANSWER: Hello Shuki;
It depends on the zoning restrictions. You will have to check with the city on the exact address and what the zoning restrictions are for that area.  Some neighborhoods will not allow commercial enterprises such as hotels but will allow for multiple residences.

The other thing is that leasing a building rather than owning it will require the permission of the owner if you turn the residence into a small hotel.

Good luck,
Jessica Bryan

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QUESTION: i was thinking of finding a small building with 4-8 rooms and convert it to a 4 star hotel... ... is it ok if i lease it? lease an apartment building and make it a hotel? is that legal?  would it be ok with the owner? where can i find information online? what should i search for?
ANSWER: Dear Shuki;
Of course it is okay to lease a building but to convert it to a hotel and do any changes is up to the owner. (Please refer to my previous answer) I have no way of knowing if that would be okay with the owner. Only the owner can tell you that.   As for the legal aspects, I explained to you that you need to check with the city since there are certainly zoning restrictions that could make it illegal.  It is easier to make a phone call to city planning department than to research this online but if you want you can go to the city government page.  Just Google city of San Francisco.  Then go to town planning and look up zoning restrictions.  I think you will find that it is difficult to figure out where and what you can do though.  It is much faster and clearer to talk to a person in zoning departments.

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QUESTION: Hi there.. one more question, I wanted to buy a property but it is not a regular home or a condo. It is a Tenancy In Common. I am not really sure what that is. Is this ok to buy to live and for an investment?

PROPERTY DETAILS:
Remarks:   Live the San Francisco Life! Don't miss this elegant TIC in the heart of Nob Hill. Cable Cars one block from home will take you downtown or to Fishermans Wharf. Spend sunny days on the beautiful roof deck with a Golden Gate Bridge view. Very charming with lots of original detail and a remodeled kitchen. Large closets, Storage and Laundry in the building. Very well maintained. Individual financing in place. Professionally managed. This TIC has ease of ownership.
Property Type:   Tenancy In Common
Listing Status:   Active
District:   Northeast - Nob Hill - 8030
Style:   Victorian
Year Built:   1908
Exterior:   Stucco
Roofing:   Tar and Gravel


Answer
This means that ownership of this property is with owners who may not be married or even related.  Each owner has a portion of an undivided interest in the property.  For example, if you and a friend decided to invest in the property 50/50 each of you would have equal and undivided use of the property as a co-owner.  I don't know why the property is listed as such.  Perhaps it is because they want the potential buyer to know that it will be easy to transfer title. Usually the potential buyer doesn't need to know how the previous owner held the deed.  Perhaps you should call the listing agent to discuss the details of the tenancy in common ownership and why they chose to list it this way.

~Jessica Bryan