Renting out an ADU can be a great opportunity to make extra income that can go towards paying off your mortgage or finally putting in that swimming pool. Whatever your reason is for renting out your ADU, you should be aware of these 3 main factors to ADU rent control.
1 Location Of ADU
If you are looking into building an ADU yourself, you should be aware that your location matters. If you live in Los Angeles, then you won’t be able to raise your rent since rent was frozen on all properties (including ADUs) due to Covid and has not been unfrozen yet. However, if you don’t live in LA, a new ADU will most likely not be covered by rent control thanks to Assembly Bill 1482 which governs the parts of California that do not have local rent stabilization ordinances.
AB 1482 allows landlords to raise the rent by 5% plus the rate of inflation in the metropolitan area on units older than 15 years. Anything younger than 15 years is not rent controlled. Local ordinances may have more strict rules though.
2 Age Of Your ADU
The age of your house and ADU will determine if stricter local ordinances apply to your or AB 1482. Local ordinances only apply to older units. If your unit is less than 15 years old, it does not have to abide by rent control laws. However, when it turns 15 years old, it then has to begin abiding by AB1482.
3 Type Of ADU
The laws that apply to you are dependent on whether or not your ADU is attached or detached. In cities like Los Angeles, a detached ADU is exempt from local rent stabilization ordinances unless it is replacing a unit that was previously rent-controlled. However, if it is attached, the house and the ADU both have to abide by local rent stabilization ordinances.
What Laws Apply To You?
To figure out your specific city/county rent control ordinances, you can go to your local government’s website or office. You can also work with an ADU professional who can figure it all out for you.