Employee housing on our ranch (house hacking for services?)

[John Braun]

Hi all,

I have a small ranch in an area that prohibits any sort of accessory dwelling rental / mother in law apartments / short term or long term rentals.

However, there is a loophole that states employee housing is allowed.

I could use the help putting up fences, clearing snow, haying, feeding horses, etc. anyway.  It would be nice to have one of the local vet students around to help and have a place to board their horse.

Honestly, the fair market value of an ADU cottage here is not all that much (maybe $1200/mo max), and I'd rather have the help than the money.

So to that end, I'm thinking of using the loophole to hire an employee, pay them partially with housing, and gain some help around the ranch.

Has anyone done this, and are there any pitfalls to look out for?

Thanks!