Zoning Laws and Local Rules

Different cities have different rules for ADUs. For example, in Los Angeles, you might not be able to use your ADU for short-term rentals like Airbnb.

Pro Tip: Before you start renting, check with your city’s planning department to make sure you’re following all the rules.

Lease Agreements: Protecting You and Your Tenant

When renting out your ADU, you need a clear lease agreement. This should include:

• • How much rent to pay and when
  • How much deposit is needed
  • What the tenant needs to do to take care of the ADU
  • A good lease agreement protects both you and your tenant.

Tax Implications of ADU Rental Income

When you rent out your ADU, you’ll need to report the money you earn on your taxes. But there’s good news – you might be able to deduct some costs, like repairs and maintenance.

Pro Tip: Talk to a tax expert to understand how renting your ADU affects your taxes and what deductions you can take.

Rental Regulations in California

Some cities in California have laws that control how much rent you can charge. These laws might apply to your ADU too.

Important: Check your local rules to understand if there are limits on how much rent you can ask for your ADU.

At Smith & Sell, we help homeowners understand all the legal and money matters when renting out an ADU. We make sure you follow all the local laws and get the most out of your ADU investment.