JULY 18, 2025
Issue 8
Q: I have a bit of an odd listing that is coming up that I need help with. The current owners have a property with an ADU (basement apartment). They are using it for a family member now and not collecting rent. However, I think that if I can market it as a rentable unit, with a rent range, then that will widen and deepen the buyer pool. What is the best way to get this information and how do you suggest I present that?
A. That is a great idea! I do encourage you to do some due diligence first - check with the city or jurisdiction to ensure that the unit actually can be rented out and what the requirements are for doing so. Some areas have a required rental registration program, some require inspections, etc. And of course, include, "buyer to verify".
Also, since you said "ADU" in the question, I assume you have already verified that it is actually a permitted ADU. Remember, multi-generation space is not always the same thing as an ADU. Especially when we are talking basement apartments, most areas require that both sets of residents can access shared systems such as a water heater, electrical shutoff, etc. Also, permanent cooking facilities is usually a requirement. So just make sure that what you are marketing is actually what it is.
Now, in terms of documenting rental income potential, I would suggest creating a supplement...
The supplement could include:
