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.
Step-by-Step
Complete Preliminary tasks
Renting & Move-in Step 1
Prepare to rent your unit by getting insurance, setting up utilities, and developing a plan to handle the finances.
Confirm the new street address for your ADU with local staff (see contact information here). You’ll need this street address to establish utility services and to set up your lease.
Understand rental laws
Renting & Move-in Step 2
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, such as restrictions on short-term rentals, rent stabilization, or minimum lease terms. For an overview of general regulations in San Mateo County, review the Department of Housing website.
Set the rent
Renting & Move-in 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. A unit is considered affordable if a household is paying less than one-third of their income on their housing costs; average income varies place to place, but Countywide income categories can be found on the County Housing Department website.
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 & Move-in 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. Depending on where you live, you may be required to initially offer a one-year lease to tenants, so talk to local staff to confirm if this is a requirement.
You will need a rental application to give to prospective tenants and a lease or rental agreement if it is month-to-month. Samples are available online. Once you select a tenant, you should collect a security deposit and first month’s rent when you sign the lease. Conducting a move-in inspection with your tenant is also a good idea.
Key Resources
Find your tenant
Renting & Move-in Step 5
Research how to successfully advertise your ADU and select a good tenant. Along with word of mouth or posting your rental online, you can also contact nearby schools, faith communities, or other similar locations to see if any teachers, staff, or community members are looking for housing.
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.
landlord incentives
The San Mateo County Department of Housing also offers incentive programs such as rental subsidies and bonuses, to help new landlords connect with low-income tenants. Email their office at leasingteam@smchousing.org and visit their website to learn more.
Manage your rental unit
Renting & Move-in Step 6
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. Other issues to consider:
Maintenance 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.
Rent increases Make sure you understand the rules about increasing the rent – California Tenants: A Guide to Residential Tenants’ and Landlords’ Rights and Responsibilities is a good resource.
Addressing conflict Hopefully you and your tenant(s) will not have problems, but if problems do arise, you may need to consider mediation assistance. San Mateo County works with Project Sentinel to provide housing mediation services, along with other resources and programs for landlords and tenants. Visit their website for more information. Depending on where you live, you also may have access to local helplines and legal clinics, so ask local staff about available resources.
Eviction In rare cases, you may need to consider eviction. It’s recommended that you work with a lawyer if eviction is necessary. State law mandates a judicial eviction process, which is best handled by a lawyer. If the reason for eviction is no fault of the tenant, you will likely be required to provide relocation assistance.
Reporting rent You might be required to report rent charged for your ADU and JADU. Check with local Planning staff to see if there are reporting requirements for ADUs where you live.
Frequently Asked Questions
Here are a few of the most frequently asked questions about renting and move-in. See the content above for more guidance, resources, and tips for all steps of the process.
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 above 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.
See our Exercises for help with your lease terms.
Can an ADU or JADU be used as a short-term/vacation rental?
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. You may be required to file a deed restriction agreeing that the unit will not be used for short-term rentals.
Before
Construction
You did it!
Your small home is making a big difference in San Mateo County.
Great tenants, great landlords
Learn how to rent out your ADU and do it right
