In the State of Minnesota, known for its lakes, Duluth is a city surrounded by boats.  This half of the Twin Ports is an excellent combination of metropolis and water views.  Real estate in Duluth is popular with Minnesotans who work in the city, those who enjoy water views, and a bustling commercial real estate market as well.  Additionally, the neighborhoods around the University of Minnesota in Duluth are popular with students during the school year.  These beautiful neighborhoods around the University of Minnesota have made some changes in the past few years converting from single family homes.

Duluth also has a rental property ordinance that has been a hotly debated issue among real estate owners, investors and renters.  The law puts strict rules in place in order to slow the conversion of Duluth’s traditional single family residential homes into units for multiple tenants.  The penalties are also quite high for violating the law by penalizing property owners $1000.00 per day for not being properly licensed as a multiple tenant unit.  This ordinance was brought to court by a group of local landlords, claiming it was vague.  However, the ordinance was upheld and found not to be vague, nor a violation of the Fair Housing Act under Minnesota law.

Investors and developers prefer multiple tenant units because they can make more money than renting out a single family home.  The units are also popular with students because they can reduce rents by taking on roommates and save some money.  The ordinance requires higher fees for those renting out units for multiple tenants than those paying license fees for single-family homes.  Owners renting out multiple tenant units are required to pay $3,500.00 in license fees.  These fees are much higher than those paid by owners of single family homes and rent them out.

Being a real estate developer or investor requires knowledge of rules and ordinances that exist at the local level.  In particular, these local rules can be confusing to navigate for out of state investors.  Before buying or investing in a local area be sure to contact a local real estate attorney who is experienced in the area and can guide you through these types of local laws that can impact how much money being made on the investment.  Before buying or developing property, it can be important to do your homework and understand what factors can impact your bottom line.  In this economy, you cannot afford to invest or develop property that is not going to bring a return for years to come.

A Duluth Real Estate Attorney can do more than just draw up the documents for leasing and sales.  Real estate attorneys know their local areas really well, as well as local ordinances and rules, how to get permits and licenses and also the local geographic and demographic make-up of neighborhoods.

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Klun Law Legal Team

Kelly Klun joined by her legal team

As our practice has grown, so has the staff and the services we offer to our clients. The Klun Law Firm services the needs of individuals, families, governments, and businesses.

Our expanded resources and services allow us to better serve our community and you. We thank you for the trust you place in us when you allow us to serve your legal needs.

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