What Happens To Leases When You Sell or Buy A Minneapolis Duplex?

On occasion, I meet a Minneapolis duplex seller or buyer who is a bit unclear about what happens to a lease when a property sells.

The lease, while signed between a housing provider and a tenant, is bound to the property. So, if the lease is current and not month-to-month, the new owner must abide by the terms and conditions set forth in the lease as written.

When the lease expires, the new owner may install their own lease and terms, given they have followed all notification requirements set forth in the lease and/or state law.

So if you’re a duplex owner thinking of selling, should you wait until the leases end, notify the tenants, then put it up for sale?

I would say no; unless it’s a tenant you no longer wish to have residing in your property anyway.

A month-to-month lease allows an owner-occupant buyer to give notice to the existing tenant at closing and move into the unit once the notice period has passed.

And if for some reason either the property doesn’t sell, or you change your mind about parting with it, you’ve not only kept a good tenant and all the revenue that comes with it.