Phase Seven
Renting & Move-in
- Understand what it takes to rent out your ADU
- Consider affordable pricing for your unit
- Make a long-term plan for the care and upkeep of your ADU
Project timeline
Most ADU projects take 12-18 months to complete, but some extend to 24 months or more.
Key Resources for Renting & Move-in
Step-by-Step
Complete preliminary steps
Renting step 1
Prepare to rent your unit by getting insurance, setting up utilities, and developing a plan to handle the finances.
Understand rental laws
Renting step 2
You will need to understand all the laws related to being a landlord, especially with regard to discrimination. For an overview of California laws that regulate certain aspects of the rental housing market, review California Tenants: A Guide to Residential Tenants’ and Landlords’ Rights and Responsibilities, published by the California Department of Consumer Affairs. Other recommended books include Nolo Press’ First Time Landlord and The California Landlord’s Law Book: Rights & Responsibilities. You should also talk to local Planning staff about regulations that might apply.
Key Resources
Set the rent
Renting step 3
Maximizing the rent is often not the only consideration – setting a fair rent a bit under market rate will help you attract and keep good tenants. Consider pricing your unit so that it is affordable for the local workforce and families who may not be able to afford high rents in the city. A unit is considered affordable if a household is paying less than one-third of their income on their housing costs. Many homeowners are motivated to rent their ADU affordably to community members because they serve essential roles and often have difficulty finding housing that meets their needs. If you financed your construction with a loan, consider the loan length, interest rate and any reserve funds you have as well.
Key Resources
Write your lease
Renting step 4
Make sure your lease (or rental agreement if it is month-to-month) clearly identifies all the expectations for you and your future tenant. See our Exercises for help planning your lease.
Key Resources
Find a tenant
Renting step 4
Research how to successfully advertise your unit and select a good tenant. Consider where to advertise the listing, if you’ll use a rental application, how you’ll assess the applicants (make sure you understand fair housing law for this step), and how you’ll run a credit check on possible tenants. Our Workbook has more information on all of these tasks.
Key Resources
Manage your rental unit
Renting step 5
Think through a long-term plan for the care and upkeep of your ADU, how shared responsibilities will be split, and how to address any issues that might occur with your tenant.
FAQs
Find answers to the most frequently asked questions about renting and move-in.
What about the money I could make renting the ADU?
Rental income is a major benefit of having an ADU or JADU on your property – for many people, it provides flexibility in their budget or an opportunity to grow their savings. Our ADU Calculator can help you estimate how much rental income could be generated by your new unit. Note that many locations do not allow ADUs to be rented for less than 30 days at a time – confirm with local Planning staff in your community.
When is my ADU ready for move-in?
As soon as the final inspection is complete, your ADU is ready for move-in! Make sure utility services are set up, an address is established, and other preparations are in place. See the Renting & Move-In page for more responsibilities of being a landlord.
What do I need to know about becoming a landlord?
Renting an ADU comes with many responsibilities, including understanding local and state housing laws, executing a lease, finding and managing a tenant, and maintaining a rental property. It’s important to understand the laws as they may affect things like future rent increases, changing use over time, evicting tenants, and moving family into the unit. Fair Housing groups in Napa and Sonoma have recommended several Nolo Press books as a good source for understanding the rights and responsibilities. At a minimum, they suggest both First Time Landlord and The California Landlord’s Law Book: Rights & Responsibilities.
Can an ADU or JADU be used as a short-term/vacation rental?
No. Napa and Sonoma County properties with ADUs and JADUs must file a deed restriction agreeing that the unit will not be used for short-term rentals (less than 30 days). This discourages the listing of ADUs on popular websites like Airbnb and VRBO and promotes them as a means to increase housing stock for the diverse needs of county residents.
