Step 7: Move In and Operate Your ADU
Congratulations! At this stage, your ADU is now built and ready for occupancy. One of the most important decisions to make as a landlord is setting your rent and finding a tenant. There are also important financial considerations and information about operating your ADU to keep in mind.
Action Items:
Set your rent
Select your tenant
Regular maintenance of constructed ADU
GET READY FOR OCCUPANCY
Setting Your Rent
If you are renting your ADU, setting a rent price is an important part of being a landlord. A good place to start is researching what others currently charge for similar units in your area.
Keep in mind that there is the City’s Tenant Protection Program, state, and and federal laws that landlords are required to follow to prohibit housing discrimination.
Selecting Your Tenant
Choosing a tenant requires a fair and objective applicant screening process. Here are some recommendations for selecting a tenant:
Use a rental application
Develop fair criteria for how you will evaluate all applicants
Conduct a credit check
Require references and talk with them
Use a fair and legal process to select a tenant
There are many places where you can advertise for a tenant. Ask friends and acquaintances if they know of anyone who is looking for a place to rent. There are also for profit and local non-profit agencies that can assist in finding tenants. One option would be to participate in SHRA’s Housing Choice Voucher Program. Find information about this program and more tenant and landlord resources at the link below.
FINANCIAL CONSIDERATIONS
How Does This Affect My Property Taxes
Constructing an ADU may increase your property taxes due to a higher assessed value of your property. To learn more about how constructing an ADU may affect your property tax bill, please contact the Sacramento County Assessor.
How Does This Affect My Utility Bills?
Utility bills, such as electricity, gas, water, sewer, and trash, are charged by usage and will likely increase by owning an ADU. Please contact each utility provider below for more information on utility billing for ADUs and potential bill estimates.
STEP 7: UTILITIES
Learn more about specific utilities and the impacts it may have on your bills.