Should Your Minneapolis Duplex Be Vacant When You Sell?

One of the most common questions I get from would-be Minneapolis or St Paul duplex sellers is if it is better to have one or all units vacant when it comes time to sell.

While opinions vary, mine has always been the same. If a unit isn’t organically vacant, and you have a good tenant whose lease either expires within 90 days of listing the property or who is already on a month-to-month lease, no.

My reason is simple. If a seller receives an offer, and just before closing the buyer loses their job, it is unlikely they will still be able to qualify for a mortgage.

If the seller gave notice before going on the market, odds are the unit needed to be painted and cleaned before then. Let’s say that took a month. Then the duplex was on the market two weeks before getting an offer. It then took another 45 days before closing. That’s three months of lost rent.

And if the first deal falls apart, the cycle starts over again.

That’s a lot of rent to lose. I’d rather my clients not have to. And in the seller’s market, we’ve been in for the last decade, they don’t have to.

As always, there are exceptions. If one or both tenants are messy or the units have been occupied by the same tenants for years and not updated, my answer may differ.

Owner-occupants will usually pay a premium for a duplex in equivalent shape to a comparable single-family home in the neighborhood. Remodeling can come with a considerable dollar and time cost, and may or may not help the seller net more money if the property has other insurmountable challenges, like a confusing floorplan or undesirable location.

If you’re thinking of selling your Twin Cities duplex, triplex or fourplex and aren’t sure of the best course of action for you and your tenants, give me a call, I’d be happy to help point you in the direction of what makes the most financial sense for you and your cirumstances.