Rent

→ Understand what it takes to rent out your ADU

→ Consider affordable rent prices

→ Make a long-term plan

Project Timeline

Most ADU projects take 12-18 months to complete, but some extend to 24 months or more.

Renting FAQs

Here are a few of the most frequently asked questions about renting your ADU. See the content below and our ADU Guidebook for more guidance, resources, and tips for all steps of the process.

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 below for more responsibilities of being 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.
See our Guidebook for resources on understanding rental laws, tenants’ rights, and more, and our Exercises for help with your lease terms.
No. Generally, J/ADUs are not allowed to be rented for 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. Some locations may require you to file a deed restriction agreeing that the unit will not be used for short-term rentals.

Renting Key Resources

These guides and resources are here for you as you get familiar with the process of building your dream ADU.

ADU GUIDEBOOK

A step-by-step guide to building an ADU in Alameda County.

Learn more →

ADU CALCULATOR

Estimate ADU costs and potential income.

Learn more →

Explore more resources

Renting Your ADU

After your final inspection, your ADU is ready for move-in! This might be you, a friend, a family member, or a tenant. There are many benefits to sharing your property with a tenant, but renting also comes with many responsibilities – make sure you have a good sense of the laws governing rental agreements and think about the issues that might arise from welcoming a new neighbor into your space.

Before you begin …

Confirm the new street address for your ADU with local staff. You’ll need this street address to establish utility services and to set up your lease.

Complete preliminary steps

Prepare to rent your unit by getting insurance, setting up utilities, and developing a plan to handle the finances.

Understand rental laws

You will need to understand all the laws related to being a landlord, especially around 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. You should also talk to local staff about regulations that might apply.

California Tenants guide

California Landlord Resources

Set the rent

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. 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.

Write your lease

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.

ADU Exercises

Find your tenant

Research how to successfully advertise your unit and select a good tenant. Typical methods for advertising rentals include sites like Craiglist and other online listings; neighborhood-based email list-servs; and posting a “for rent” sign on your property. Make sure to look up local rules about real estate signs, which may limit the size, quantity, and other characteristics of your signage.

Manage your rental unit

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. According to state law, it is your responsibility as a landlord to maintain a “habitable” ADU, and note that you’ll need to give your tenant(s) 24 hours’ notice before you or maintenance providers can enter the unit. You should also make sure you understand rules about rent increases and eviction.

Learn from others in your community

Cat, Oakland

“I was looking for an affordable rental in Alameda County but there were few options. In the end I found a private ADU in East Oakland which gave me independence, the freedom to restart my home business and create a sanctuary for my hobbies and passions.”

Read Cat’s story →