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Updated 18 days ago on . Most recent reply

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Jen Geisler
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Renting an unpermitted apartment????

Jen Geisler
Posted

I'm looking at putting an offer on an amazing property on the beach in Washington state. There is a main house which I would intent to STR and use for myself, and a huge garage with two small finished apartments, a 1-bed 1-bath and 2-bed 1-bath, separate entrances to each. Problem is this garage/apartments unit was Not permitted. I've walked through it and it seems solid, have not done an inspection on it yet but would if I put in an offer. I'm wondering though is this a dud in terms of rental prospect? I can't landlord this thing myself, I have to have a property manager as I am out of state and I simply don't want that responsibility. My agent says there are unpermitted properties all over and regulations are very lax, she does not see anything to worry about renting, but I worry! The house is also very expensive for me, so I am dependent on these units being rented either STR or LTR, in order for me to afford the monthly payment on the property. If I can't get a property manager to rent them, I'm going to be in way over my head! What do we think, will a property manager often decline to manage an unpermitted ADU? What about insuring an unpermitted ADU for rental? What other problems could I run into?

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Bruce Woodruff
#1 Contractors Contributor
  • Contractor/Investor/Consultant
  • West Valley Phoenix
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Bruce Woodruff
#1 Contractors Contributor
  • Contractor/Investor/Consultant
  • West Valley Phoenix
Replied

No, never rent out an unpermitted anything. If a tenant or house is involved in anything like a fire, electric emergency, eggress issues, on and on.... you will be in big trouble. The city will come down on you, your insurance will deny payment on any claims, etc....

So either get it permitted retroactively (this is not always easy or possible!) or pass on it. Just my $.02.....

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