Illegal Accessory Dwelling Unit

[Matt Splittgerber]

I am in the process of looking for a Short Term Rental property. One of the homes i found had a recent ADU completed that the owners stay in and have been privately renting out. The zoning of this property doesnt allow multiple STR properties at the same location. Does anyone else have any experience with this? I havent received confirmation on whether permits were pulled but it was renovated in a nice manner. It's a good unit, but the zoning just doesnt allow the home to be marketed as seperate units to different parties.

Anyone have any experience marketing a house with an included In-Law suite or similar? I feel this could be a good feature of the house but do not see any examples of good ways to market it to bring in extra value and income on the property.  I don't want to rent out an unlicensed and illegal unit separately. 

[Dan Maciejewski]

Besides parking, does the city actually regulate how many separate families can stay at a location? In my area you would be fine to market the same property twice -- one ad for an ADU and one for the main house. The bigger question would be if the property allows for two groups that don't know each other to each enjoy their own space.

If you truly can't market it separately, there is a big draw for MIL suites in a vacation rental.  That's one of the reasons why our luxury houses do so well and get great rates.  You can fit large or extended families, or you can fit 2 families vacationing together.  It happens a lot.  We have a friend that has a giant lake house and sometimes has 3 families staying at once!