Disclosing Potential ADU Construction to a Tenant

[Lindsay Kuzara]

Hi BP, I have a SFH in Central Oregon that I just remodeled and will put up for rent.

I plan to build an ADU on the property in the future and am wondering the best way to disclose/approach this with a tenant.

Currently the backyard has a deck/patio and grass that spans the entire backside of the home - this space would not be effected by the ADU.

The remaining backyard space to the side of the home is currently dirt and is where I intend to build an ADU. The entire backyard is currently fenced in as one space.

I'm wondering if it's best to allow the tenant to use the entire fenced in space as it is currently and disclose in the lease agreement that owner has the right to prohibit tenant from using the X space at any time during the term of the lease if planning/construction begins. If doing so, I would make sure it is known to all parties what 'X' is referred to with photos, dimensions, and stakes in the yard.

Or, is it best to temporarily split up the yard and not allow tenant to utilize the space that may be used for future development? 

I'm thinking the latter would be the obvious best approach; however I want to avoid putting more money into the property and over-improving if not completely necessary.  

For reference, the home is on a 1/4 acre and the yard space is considered very spacious for where it is located. 

Any thoughts or tips regarding this would be helpful. First time rehabber and soon-to-be landlord here! 

Thanks in advance