It is no secret to real estate investors and developers that some cities and municipalities are much better to work in than others. Well some places are “pro-growth,” others are real estate “landmines.” In deciding where to invest, it is vital to determine where a municipality falls on this scale.


A town or city that isn’t business friendly can be a major burden to a real estate developer. From additional fees to costly delays, a hostile local government is almost always the developer’s worst enemy.


There are a number of ways that a anti-business environment stunts the development process. Some cities suffer from a backlog in the building approval process, with a shortage of engineers to give building projects the go-ahead. This, in turn, causes serious delays in construction.


Towns and cities can also have an arduous array of zoning laws and regulations that severely limit what a developer can do. By restricting what types of housing can be built, governments make it difficult for real estate projects to continue as planned.


All this means that a developer must carefully research a municipality before getting involved. Many prosperous careers are owed to the habit of avoiding real estate landmines.


But how do developers make their decisions on where to invest? They begin by doing research to determine the business-friendliness of a city and the transparency in rules and regulations.


A municipality’s website should spell out processes in detail and make necessary forms easy to find. If this is not the case, then the local government is probably not as concerned with development as it should be. A phone call to the local government can also be a useful way to learn more about the area’s real estate climate.


It is also important to investigate the planning process. If it is efficient and streamlined, that is a good sign. Asking locals with experience in the area is also a good strategy, as it gives an investor the inside scoop. Learning about the local politics can also be fruitful, as it will determine the likelihood of resistance to projects down the road.


Real estate investment is all about location. That is why developers must avoid bureaucratic landmines in order to invest wisely.