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.