Blog Post

What Does an ADU Rent for?

Dustin Edwards • February 9, 2023

An ADU Can Be Rented Out

Do you own a house with an accessory dwelling unit (ADU)? Or are you planning on building an ADU on your property to rent it for additional income?


With the cost of living increasing, renting your ADU can help generate a steady income. However, figuring out how much to charge for rent can seem difficult to new landlords.


Below are a few tips and tricks to help you find the appropriate amount to rent your ADU for a while remaining competitive.


Location

Like any investment property, one of the critical factors determining what you can charge for an ADU is the location. The location will form the baseline of rental rates. Many tenants look for specific areas when looking for a rental. Desirable establishments such as schools, parks, shopping centers, and hospitals can significantly affect rent. 


The neighborhood where the ADU is being rented may not affect the rent prices too much. Though, being located in a quiet, friendly community is a bonus.


Size and Configuration

Naturally, the size of the ADU will directly affect the rental costs, the larger the space for rent, the more you can charge for it, though the size isn’t everything. The configuration of the ADU can also affect the rent. For example, an 800 square foot single bedroom, single bathroom (1/1) ADU can be simple to build but difficult to maximize the amount you can charge. Whereas the same size living space configured as a 2/1 or 2/2 can not only be significantly more profitable, in many cases, it can reach a broader market due to being more desirable.


Amenities

Some of the first amenities asked for by tenants are access to a dishwasher, a washer, and a dryer. Being able to include these can help you find tenants. The more amenities you provide, the more rent you should expect. An updated kitchen with granite countertops and stainless steel appliances can be incredibly attractive to tenants.


Many tenants look to the outside as well as the inside of a rental space. Outdoor living areas, either private or shared, can let them go out for fresh air or enjoy the summer sun. Security features such as cameras, alarms, and security lights can provide a feeling of safety inside and outside of their home. Many tenants may also have pets. A
flexible pet policy can expand the pool of tenants looking for pet-friendly rentals. Though allowing pets can be risky as they can cause some damage to the property, this is often circumvented by having specific pet-related addendums on the lease.


Compare Locally

The most straightforward way to understand how much you can charge for your ADU is by comparing similar rentals in your area. If you need more information on how much you can charge, a local property management company can help you price your rental.


Pricing your rental doesn’t need to be complicated. Renting your ADU should relieve financial stress, not cause more. If you are looking for a property management company local to Long Beach, consider calling us at (562) 888-0247, or feel free to fill out our
free rental analysis to see what your rental could yield today.


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By Dustin Edwards December 19, 2024
If you're properties are suffering from lack of heating this winter, these 3 common issues could be the cause.
By Dustin Edwards December 12, 2024
Although Southern California’s winters are typically mild when compared to other parts of the country, tenants still value a warm home during the cooler months. Taking steps to maintain a comfortable living environment shows your tenants that their needs are being prioritized. This is crucial for tenant satisfaction, especially during the holidays. Below are three methods to help keep tenants warm during the winter season. Maintain Heating System It's required for landlords to provide rentals with a working heating system, however, it's not uncommon for these to fall into disrepair either because of lack of maintenance or negligence. Scheduling regular inspections and maintenance before the coldest weather can help to ensure the heating is reliable and efficient. Cleaning air filters, and checking for cold spots, or irregular noises can help prevent small issues from escalating into expensive repairs. Preventative maintenance can help to reduce the chances of inconvenient calls for emergency repairs. Being proactive with your maintenance can also help you protect your investment while earning goodwill from your tenant. Another factor that can affect your heating system is drafts around windows and doors. These drafts can cause your heating system to overwork which makes the system less efficient, and reliable and ultimately reduces the lifespan of your heating system. You can address this by inspecting the seals around doors and windows for gaps or cold spots. Replace worn-out seals and caulking where it's needed. Offer Smart Thermostats Consider providing your tenants with a smart thermostat for energy-efficient heating. This can not only give tenants control over their comfort, but it's also a great tool to reduce energy usage. By providing this upgrade to your tenant, you show a commitment to your tenant’s satisfaction which can in turn result in a long-term tenant. These kinds of devices definitely benefit your tenants, though they can also contribute to the longevity of your rental property as well. Additionally, you can give your tenant a smart thermostat as a holiday gift . This can show your tenant that you’re not simply collecting rent while protecting your investment. Reverse Ceiling Fans The direction in which a ceiling fan rotates is oftentimes overlooked, and it can have a great effect on the temperature of a home. A ceiling fan is typically seen as a way to cool down a home during the hotter seasons without using the air conditioning . Reversing the spin of a ceiling fan can help to circulate warm air more efficiently during the cold season . This is because warm air rises, and a fan rotating clockwise will push the warm air back down helping maintain warm temperatures. Most fans have a switch on the motor and it is easily accessible for most people with a step ladder. This easy adjustment helps reduce the need for your tenant to use the heating system. Tenants will notice a more consistent and comfortable temperature indoors. This should also help reduce costs on their energy bill. Reversing the rotation of the ceiling fans also takes some of the strain off of the heating system. This helps to ensure it operates efficiently for years by reducing the wear and tear on it. Taking proactive steps this winter season to ensure your tenant’s comfort demonstrates a landlord’s commitment to their tenant’s comfort. A comfortable tenant is a satisfied tenant , which can lead to a long-term tenant and steady rental income. Consider it a small investment for long-term success. If you need help keeping your rental warm or managing Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .
By Dustin Edwards December 5, 2024
Discover 3 Gift Ideas for your tenants this holiday season.
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