In today’s slower real estate market, many duplex home owners who have to relocate due to employment, expanding families, or other life changes, are exploring moving family members in to their old units.
The thinking goes that if a relative is on the premises to manage the property, perhaps maintenance and upkeep will stay on par with the owner’s standards.
The other thought, of course, is perhaps the property will continue to qualify for homestead property tax status.
In the city of Minneapolis, qualifying relatives may become substitute occupants for the duplex owner. Relatives of the owner are defined as a child, stepchild, daughter-in-law, son-in-law, parent, stepparent, parent-in-law, grandchild or grandparent, brother or brother-in-law, sister or sister-in-law, aunt, uncle, niece, nephew, or step nieces or nephews.
Of course, the city isn’t going to let the duplex home owner off that easily. Relative homestead property residents have to apply for a Rental License through the city, which may cost the duplex owner an initial inspection fee as well as a $65 license fee.