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Updated about 6 years ago, 10/25/2018
Using a Single Family Home as a Multi-Family
Are there any issues with renting a single family home to multiple families, if the house is equipped to do so? Does the home have to be classified as a multiple family dwelling by the taxing district? Wondering if there are any legal issues with this.
Yes, assuming you've created 2 separate units it's usually a zoning violation at the least. There's likely other occupancy codes too. Not that I agree with such laws, they're often meant to keep out "undesirables" who are unable to rent a whole house, like minorities and young people.
Thank you, @Johann Jells!
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Check local ordinances. Sometimes, Additional or accessory Dwelling Units are allowed but local owner must still occupy the residence.