fremont, CA · Member since 2016 · 41 posts · 3 votes
I have a ADU in the bay area that is rented out. I have to move out to a different place in few months and I am wondering on how I can rent out both the main home and the ADU legally or my only option is to sell the house.
The city has an owner occupancy requirement (either main home or adu).
Rental Property Investor · San Francisco, CA · Member since 2013 · 1k+ posts · 1k+ votes
8y
Is this even being inforced? It’s a ridiculous restriction on the property. Did you need to record a deed restriction on your property stating this? If not, it may be all bark and no dog. Therefore it may only be complaint driven, meaning a neighbor has to call the city and complain before they do anything about it.
Maybe others have more direct experience with this Issue in San Jose.
Rental Property Investor · San Francisco, CA · Member since 2013 · 1k+ posts · 1k+ votes
8y
Is this even being inforced? It’s a ridiculous restriction on the property. Did you need to record a deed restriction on your property stating this? If not, it may be all bark and no dog. Therefore it may only be complaint driven, meaning a neighbor has to call the city and complain before they do anything about it.
Maybe others have more direct experience with this Issue in San Jose.
Rental Property Investor · San Jose, CA · Member since 2015 · 401 posts · 221 votes
8y
Pretty sure it’s like Amit said, complain driven.
It get ridiculous sometime. I got a letter tell me to move my car off my lawn (no grass), yet the next door neighbor cemented her whole front yard.
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
8y
Originally posted by @Account Closed:
I have a ADU in the bay area that is rented out. I have to move out to a different place in few months and I am wondering on how I can rent out both the main home and the ADU legally or my only option is to sell the house.
The city has an owner occupancy requirement (either main home or adu).
You didn't mention the actual city, but I'm highly skeptical of this. Will you cite your source on this claim/info, as well as enforcement mechanisms?
Rental Property Investor · San Francisco, CA · Member since 2013 · 1k+ posts · 1k+ votes
8y
What you can do is call the city and pretended you’re a curious neighbor about another (fictitious) property with an inlaw nearby. You may get transferred around, but eventually you will get the skinny on this issue either via bldg dept, planning dept, code enforcement, etc. I think you’ll be ok renting, just be discreet and get tenants that won’t annoy your neighbors.
In San Francisco we deal with these shenanigans all the time :)
Please post back here and tell us what you find out. There are many readers considering ADU's that would benefit from this info.
fremont, CA · Member since 2016 · 41 posts · 3 votes
8y
@Amit M. Enforcement is complaint based. I can always rent it out and hope for the best but I think there is a legal way around this.
Basically, anybody can rent a house to a "family". By definition "family" means either related by blood or non-blood.
If I make a single lease for the whole property (could be multiple people, similar to renting a house to multiple roommates, from my perspective it is just one lease.) then I think I am still within the same guidelines. how the tenants divide the house and live is up to them. not sure, if what I am saying makes sense ?
Rental Property Investor · San Francisco, CA · Member since 2013 · 1k+ posts · 1k+ votes
8y
how is the ADU restriction worded in city docs? That will help determine if your idea could work.
Keep in mind that renting both units to a single party will restrict your potential tenant base, and you may have to lower the rent to achieve it, as most renters are looking for 1 unit.
Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
8y
I have a house in Redding, CA that I'm actually in the process of converting to ADU. However; ADU will have a separate address and is considered the same as a SFR home in regard to tenants. The State of CA actually required the cities and counties to begin allowing ADU's in order to alleviate the housing shortage. They are no longer just for family members, etc. but for new housing units to help cities/counties comply with affordable housing laws. It's a benefit to the city, because every city in CA is severely short on affordable housing. Check with City Planning as laws may have changed in your area.
As for mine, I am now thinking of permitting it as a 2nd home rather than ADU. ADU makes me eliminate some of the living space and take it down to 1200 sq. ft. A 2nd dwelling has no such limitations, though it will cost me $5000 more for septic leach lines, but I think far more value as 2nd house on property. (I have 20 acres)
Rental Property Investor · Santa Clara, CA · Member since 2019 · 160 posts · 156 votes
7y
At least for San Jose, starting from July 2018, owners now can rent out both units without living in the property. With more relaxed rules from July 2018, it makes a lot more economic sense to invest into building an ADU: http://www.sanjoseca.gov/DocumentCenter/View/78534