There's a property zoned as a duplex in a two-family zone, but it's a triplex. It has three kitchens, three living spaces separated from one another—three gas meters, even. But the city confirmed that it's not legally a triplex, but rather a duplex.
My main question is: What does that mean for how the property can be used?
In this city, the occupancy limit for duplexes is 6 people per unit, and zoning told me they don't concern themselves with the number of leases at a property. Can anyone speak from experience or expertise about what issues I might have by leasing the property to three parties, given I respect the occupancy limit?
Flipper/Rehabber · Minneapolis, MN · Member since 2016 · 1k+ posts · 1k+ votes
5y
This will largely depend on the city as some cities don't even require rental licenses but using for a non-permitted use is likely a misdemeanor. Zoning doesn't care about rental ordinances so you will have to talk to someone in building or in a smaller town maybe the city administrator who is familiar with city code.
If Mpls - you can live in one unit and rent the other two. From what I understand you currently can't use it as a triplex. You may be able to convert it to a triplex under the 2040 plan by adding fire barriers but a triplex is commercial building code. Duplex is residential building code so they are built to different standards. Maybe someone with more experience in Mpls will chime in.
First step here is to call the city and talk to them about it. It may have been a prior permitted use and is grandfathered in but you don't want to value a property as a triplex and be stuck converting to a duplex or having a vacant unit. There are many properties in Mpls that have this issue, it is up to the buyer to understand the permitted use for the property. Duplex with a non-conforming unit or ADU is not the same as a triplex.
Flipper/Rehabber · Minneapolis, MN · Member since 2016 · 1k+ posts · 1k+ votes
5y
This will largely depend on the city as some cities don't even require rental licenses but using for a non-permitted use is likely a misdemeanor. Zoning doesn't care about rental ordinances so you will have to talk to someone in building or in a smaller town maybe the city administrator who is familiar with city code.
If Mpls - you can live in one unit and rent the other two. From what I understand you currently can't use it as a triplex. You may be able to convert it to a triplex under the 2040 plan by adding fire barriers but a triplex is commercial building code. Duplex is residential building code so they are built to different standards. Maybe someone with more experience in Mpls will chime in.
First step here is to call the city and talk to them about it. It may have been a prior permitted use and is grandfathered in but you don't want to value a property as a triplex and be stuck converting to a duplex or having a vacant unit. There are many properties in Mpls that have this issue, it is up to the buyer to understand the permitted use for the property. Duplex with a non-conforming unit or ADU is not the same as a triplex.
@Tim Swierczek Oh huh, I guess it would. I hadn't thought about that.
It would affect their LTV calculation at least—they'd only be able to account for income of two units. Maybe it would affect lending in other ways, too.