Renting Your ADU
Maximize your ADU investment with our comprehensive rental guide
Market Analysis
Current Market Rates (2025)
| City | Studio | 1 Bedroom | 2 Bedroom |
|---|---|---|---|
| San Francisco | $2,500-$3,000 | $3,000-$3,800 | $3,800-$4,500 |
| Los Angeles | $1,800-$2,300 | $2,300-$2,800 | $2,800-$3,500 |
| San Diego | $1,700-$2,200 | $2,200-$2,700 | $2,700-$3,300 |
| Sacramento | $1,400-$1,800 | $1,800-$2,200 | $2,200-$2,700 |
Market Trends
Demand Factors
- Housing shortage
- Remote work trends
- Multi-generational living
- Urban migration
Popular Features
- Private entrance
- Outdoor space
- Modern appliances ```astro
- High-speed internet
- Storage solutions
Rental Types
- Long-term residential
- Short-term vacation
- Student housing
- Remote work spaces
Legal Requirements
California Rental Laws
- Rent control regulations
- Security deposit limits
- Tenant rights
- Eviction procedures
- Maintenance obligations
Important Note
As of 2025, California law prohibits owner-occupancy requirements for ADUs approved between 2020-2025.
Required Documentation
- Rental agreement
- Property insurance
- Inspection reports
- Disclosures
- Business license
Safety Requirements
- Smoke detectors
- Carbon monoxide detectors
- Emergency exits
- Fire extinguishers
- Proper ventilation
Marketing Strategy
Online Platforms
Long-term Rentals
- Zillow
- Trulia
- HotPads
- Craigslist
Short-term Rentals
- Airbnb
- VRBO
- Booking.com
- Local vacation sites
Photography Tips
- Professional quality photos
- Natural lighting
- Multiple angles
- Highlight features
- Virtual tours
Listing Content
- Detailed descriptions
- Highlight amenities
- Location benefits
- Clear policies
- Accurate pricing
Tenant Selection
Screening Process
Application Review
- Employment verification
- Income requirements
- Rental history
- References
Background Check
- Credit report
- Criminal history
- Eviction records
- Identity verification
Interview Process
- Meet in person
- Discuss expectations
- Answer questions
- Assess compatibility
Fair Housing Laws
- Protected classes
- Equal opportunity
- Consistent criteria
- Documentation
- Non-discrimination
Property Management
Self-Management
Responsibilities
- Tenant communication
- Maintenance coordination
- Rent collection
- Property inspections
- Financial records
Time Investment
- Regular inspections
- 24/7 availability
- Administrative tasks
- Vendor management
Professional Management
Services
- Tenant screening
- Rent collection
- Maintenance
- Legal compliance
- Financial reporting
Costs
- 8-12% monthly rent
- Leasing fees
- Maintenance markup
- Setup fees
Financial Planning
Income Projections
| Category | Monthly | Annual |
|---|---|---|
| Rental Income | $2,500 | $30,000 |
| Expenses | ($500) | ($6,000) |
| Net Income | $2,000 | $24,000 |
Expense Planning
- Property taxes
- Insurance
- Utilities
- Maintenance
- Management fees
- Vacancy reserves
Tax Considerations
- Rental income reporting
- Deductible expenses
- Depreciation
- Record keeping
- Tax planning
Ready to Rent Your ADU?
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