landlord/tenant

The form will ask for your Tax Map Key (TMK), zoning district, lot area, address, type of unit (building new or converting existing), number of bedrooms and information on the plot and floor plan. An ADU is essentially a small single-family home and it must include a kitchen, bathroom and bedroom (which can be shared with the main living area).

The property must meet the minimum specifications for the ADU. Lot area of 3,500 s/f to 4,999 s/f will allow for a structure with a maximum size of 400 s/f and with a lot of 5,000 s/f or more you can have a structure up to 800 s/f. Be careful in case your homeowners’ association prohibits a second dwelling or rentals. Zoning designation must match one of the districts – R-3.5, R-5, R7.5, R-10, R-20 or Country District. Your property also cannot be landlocked – you can’t access your property over someone else’s property; a flag lot or a lot with an easement can still work, though.

Other considerations are that there cannot be more than one dwelling unit on the property; if current property is multi-family, ohaha, dupex, apartment, etc., an ADU won’t be permitted. Only one ADU is allowed per single-family lot. The property owner or owner’s family must reside on the property or they must designate a representative to live either in the main house or the ADU. The lot must also be able to fit one parking space in addition to the space designated for the main house, The only exception to the parking situation is that if the property is within a half mile from a rail station, then you don’t have to provide a parking space. Finally, you can either convert an existing space into an ADU or build new construction both are acceptable options.

When renting out the ADU, it must be a long-term lease – six months or longer; you cannot designate it to be a short-term rental, a bed and breakfast or an Airbnb. As a landlord you will be required to pay taxes on the rental income – federal, state and General Excise.

The concept behind ADU’s is to create additional long-term housing, to support the local economy, to minimize urban sprawl, to use existing infrastructure (instead of creating new utility connections), to maintain the character and feel of neighborhoods and to encourage diversity.

In speaking with homeowners who have taken on the project, it seems that the current time line to complete the necessary documents, obtain a permit, design the ADU, contract out the work and complete the building is right around 1 year. Be sure that you are prepared for the time it will take, the financing involved and the headaches that go along with such a project. If you have the fortitude to do this, you will be contributing to your community and ultimately your pocketbook.