However, you may be able to capitalize some of these costs, particularly if they relate to improvements or preparation of the property for rental.Expenses (after December 1, 2023):Any expenses incurred starting from when the property was available for rent (December 1, 2023) can be deducted.

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.

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.  

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 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.

It's generally quite stressful and entails a lot of on-the-ground coordination.Luckily, I have great tenants that have most been with me 4-5+ years.