How do I rent out my ADU?
Construction is complete, and now it’s time for someone to move in. This may be you, a friend, a family member, or a renter. If it is a tenant, there are plenty of resources to help you if you are a new landlord, including organizations that can match you with a renter and help you manage your unit.
Step 1: Rules and rents
The law and being a landlord
Most ADUs can only be rented for periods longer than 30 days. You will need to understand all the laws related to being a landlord, especially regarding discrimination.
Review the Guide to Residential Tenants’ and Landlords’ Rights and Responsibilities for an overview of California laws that regulate certain aspects of the rental housing market. You should also talk to your local jurisdiction about regulations that might apply.
Setting the rent
Maximizing the rent is often not the only consideration – setting a fair rent will help you attract and keep good tenants.
If you financed your construction with a loan, consider the loan length, interest rate, and any reserve funds you have.
Consider pricing your unit so that it is affordable for the local workforce including teachers, firefighters, and families who may not be able to afford high rents in the county.
Want to learn more? Consider signing up for training on fair housing law offered by Fair Housing Advocates of Northern California.
Step 2: Finding a tenant
Understand how to successfully advertise your unit and select a good tenant. HomeMatch is a program the county has partnered with that helps seniors screen for roommates.
In California, housing affordability is a major issue. Consider pricing your unit so that a community member can rent it.
Step 3: Leases and long-term
Rental leases
Make sure your lease (or rental agreement if it is month-to-month) clearly identifies all of the expectations for you and your future tenant. Download a sample lease template here.
Tenant management
Have a long-term plan for the care and upkeep of your second unit, and how to address any issues with your tenant.
About Casita Coalition
Casita Coalition is the only statewide, multi-sector organization that brings together all key players to remove policy barriers, making a big impact through small homes. Working through our Board, Advisory Committee, and Working Groups, we draw on the diversity of expertise and experience of our members to make it easier to build small homes in all neighborhoods across California. Visit www.casitacoalition.org to learn more.