I have a client that wants to buy a SFR with an ADU in back to rent. We found the perfect house EXCEPT the ADU is not permitted. Can she rent guest house if she buys? We want to make an offer but the legality of the situation has us holding back.

Ask the local building/zoning authority to see what would be involved in resolving the lack of permitting. It could be done without mentioning the specific address. Just a "what if" question. Renting a property carries an element of risk and they would want to make sure they weren't doing something to increase that risk (from either a financial or legal standpoint). How do they know it's not permitted?

I asked the listing agent outright and she told me. I'll contact the local building/zoning authority. Thank you. My client that wants to buy will only buy if she can rent unit legally.

@Kimberly Galvan if she plans on living there, make sure that’s apart of your research. The laws tend to be slightly different when it’s owner occupied vs strictly a rental.

@Andrew B.  Thank you! I'm hoping that will be the case!