With 300-Foot Rule Gone, More Rental Activity in Duluth

By KBJR News 1

June 10, 2011 Updated Jun 10, 2011 at 9:43 PM CDT

DULUTH, MN (Northland's NewsCenter) - Nearly three months after the controversial rental 300-foot rule was overturned in Duluth, realtors say more rental property is popping up, and homeowners who couldn't sell before are now finding relief.

The 300-foot rule kept homeowners from turning their houses into new rental properties if the home were within 300 feet of another rental property.

The rule only affected homes within a defined zone around the UMD college campus.

A new rule lifted that restriction allowing single-family rentals, but not multi-tenant rentals.

Some realtors still argue there should be more options for homeowners.

"I think there's been, obviously, some additional activity, because of the licensing options that have gone into effect, but the market in terms of allowing it to free work, still isn't there yet because of the restrictions that still exist," said Gary Kalligher, a Duluth realtor.

Realtor Gary Kalligher is part of a group of landlords suing the city over rental reform.

He says the group's goal is to help free-up the market.

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