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It depends on the home's rental history and your jurisdiction.
If the home has been owner occupied or vacant for the last three years, the house can be demolished in most jurisdictions. However, if it has been rented or leased to tenants at any point in the last three years, you may not demolish the house or change more than 25% of the exterior walls.
Some jurisdictions do not allow demolition of 25% or more for any units, regardless of current or former occupancy.