In the remodeling business there are some items that do not require a permit. Many real estate investors will sabotage their business by ignoring this piece of paper and proceeding forward, thinking that they will save some money. Proceeding without knowing when it is or isn’t appropriate to get a permit could cost the investor thousands of dollars. We will cover when you do need to get a permit and when it isn’t necessary.
These are Home Remodeling Projects that DO Require a Permit include:
- Changing the look of the exterior of the house
- Additions square footage
- Any tear downs
- Adding sheds and alternative structures
- Moving or adding outlets or plumbing fixtures
- New roofs
- Swimming pools
- New electrical systems, including solar
- Structural changes
- Finishing basements and attics
- Converting garages
Codes can vary by city and county, so it is very important to check with your local agency for its own codes and regulations.
Why do we need Building Permits?
The first building code record dates back to almost 4000 years. The building permit is a twofold system. It was created to make sure that the quality of work received from builders were safe for consumer and to ensure the quality of work from the builder. Today this practice is still followed. The local agency requires builders, licensed contractors, and property owners to give the city a detail plan of their project and the city makes sure that the plans are safe. Once approval is obtained the city will send inspectors to make sure the standards and plans are being followed. Permits range in cost, anywhere from $400 and $1,400.Taxing authorities are alerted when permits are pulled. This creates a revenue sources for the government. The benefit of building code is that it provides a standard for the community and it controls what can be built and who can build it.
What Remodeling Projects May Not Need Permits?
Often, there are many popular home projects that do not require a building permit these include:
- Changing existing plumbing fixtures
- Installing basic alarm systems
- New phone lines
- Putting in new flooring
- Screening existing covered outdoor spaces
- Recoating driveways
- Painting the inside or outside of a home
- Replacing water heaters and AC units
- New fans and light switches
- New kitchen cabinets
Never assume that you do not need a permit to do a project. Always check with your local agency. In some areas authorities can put a maximum dollar amount on improvements that can be made annually without a permit. Low end cosmetic remodels may not trip these limits. Remodels of Luxury homes may go over these limits with new quartz countertops or just a few square feet of tile.
How to Get a Building Permit
Obtaining a building permit can be a tedious process and it could add extra time and costs; but, it can also be easier and less painless than many homeowners and real estate investors expect.
The process is different from area to area, but will generally look like this:
- Go to the building department and get the application or download online
- Submitting detailed plans
- Paying the applicable fees in advance
- When work is completed on property have a final inspection
There is a third party permit services which can help expedite the process. If you talk to a contractor most will also be happy to handle the permit process in order to gain your business.
The Dangers of Buying and Remodeling Properties without Permits
It is Illegal to have work that requires permits done without a permit. Ultimately property owners are responsible for the work done on their property, whether they did the work or not. Potential code violation includes:
- Inability to sell the property
- Fines and daily interest penalties
- Liens against your property
- Condemnation
- Seizure by eminent domain
- Inability to obtain financing, or withdrawal of loans made
Do not underestimate how severe these penalties can be. Some have faced liens of tens of thousands of dollars against their properties.
Real Estate Investing & Building Permits
Real estate investors need building permits when they are required. The risk is too great to forgo them. Though there may be appealing investment opportunities in properties with illegal garage conversions, and other unpermitted work we suggest using caution when taking on these projects. Consult with your attorney on how best to protect yourself and your business.
Permits take money, time and can trigger increased tax assessments and property tax. Depending on your capital and tolerance for hold time, will determine whether or not you can proceed with your project or if you need to find easier fix and flip that doesn’t require permits.
see original article at https://www.cthomesllc.com/2016/02/