When that phone does ring, you want to be able to have a business like conversation and not stumble around.Good Luck!

Since I didn't hear the conversation, I can't be specific as to what might have occurred.But here are some likelys, you say:1.

But, honestly, there's no stipulation for anything like this in the lease, and they're nice people, so I'm just unsure how to go about having this conversation with them.

Response rates are not great by any stretch of the imagination (at least for me), but occasionally someone does reach out and at least allows a conversation to begin. 

I would never do this unless there were some serious financial benefit.On the other hand, I just conversed with someone yesterday that willingly loses hundreds of thousands every year by letting someone else arbitrage his properties.

The conversation should be about how much real estate values will drop.

Any issues with permitting / conversion of the 4th BR?

Conversely, as a seller, you want to maximize price, regardless of your valuation.TakeawayThe best investors know that valuations should not be driven by emotions or by their perception of a competitor’s or seller’s value.

Waiting for appraisal and mortgage before I have a conversation with them. 

Here is text taken from the HOUSABLE website for Oakland:Utility ConnectionsCategory One: No new or separate utility connection shall be required.Category Two: A new or separate utility connection may be required, but the connection fee or capacity charge shall be proportionate to the burden of ADU on the water or sewer system.Here are definitions of the ADU categories from the City of Oakland website:CATEGORY ONE ADU: Involves either conversion of space within an existing Single-Family Dwelling, or conversion or rebuild of an existing accessory structure; includes no expansion of the existing building envelope other than up to 150 sq. ft. for purposes of accommodating ADU access and egress only.CATEGORY TWO ADU: Involves construction of a new detached or attached structure, including an exterior addition to an existing structure to accommodate the ADU, in conjunction with a proposed or existing Single-Family dwelling.It seems that Oakland is making things confusing with the language they are using, but I still believe that my original interpretation is correct based on the State Assembly Bill.