ADUs can provide additional rental income, which can help offset mortgage payments or other expenses.Extend your homeowner's insurance to cover the ADU.Be prepared for potential increases in property taxes due to the added living space.Given that your property is not in a dense urban area, make sure to check specific local regulations as they may differ from city regulations.

Be prepared to substantiate your claims.

Lastly, if you represent yourself, be prepared to block out several days for court appearances, no matter if the tenant shows up or not. 

Both of them can help guide you through the process because either way you will likely need to prepare architectural plans to get submitted to the city.When you are ready for the renovation, let us know and we can surely be a resource for you in that department.

If you need to ‘snap  increase”  then by a large margin… give your tenants extra notice and just advise them that due to significant increases in expenses we must make some pretty major increases to our rents , but I’m giving you ample notice to either prepare for this change or to plan to find a new living situation.  

If you can give us a little clarity into your background, goals, and location experience then we can help give you a better idea of what to prepare for. 

That is not to say you shouldn't try, just be prepared with realistic expenctaions.

So, they are often not prepared for large sudden changes.

Eager to learn about RE tax write-offs, how to document/keep up with expenses, what can be written off, etc. at this point...However, the 3 RE focused CPA's I've visited with want $5,000 annually for a couple hour sessions a year and a few recorded classes and other resources, which does not include tax preparation. 

Working with a CPA ensures you are fully prepared and equipped to take advantage of the latest updates.