How many tenants can i keep in Single family home?

Question

HI,

my current home is 2bed and one bath. I am thinking to extend it and give it on rent. But I want to know if I build 3 studio in my backside of home. Can i rent that out legally. Or is there any restrictions on that?

Thanks

Neetu

Wilson Lau · Answer

Hi @Neetu Patil, unfortunately, you can only do 1 attached ADU plus a detached ADU (provided everything else meets San Jose's building code). You can also consider STR or rent by room on the ADUs depending on your specific location.

Alecia Loveless · Answer

@Neetu Patil Depending on the market there may or may not be a high demand for ADUs.

I just listened to a podcast by David Greene formerly of Biggerpockets and he said he has moved to Oklahoma and kept looking at houses thinking he could build ADUs at them before he discovered that there was no call for it in his new market. He said the tenant pool there wants a single family home with a big yard all to themselves.

So besides all the permitting make sure there’s actually a demand for renting ADUs before you waste your money.

Alan Asriants · Answer

This makes sense for an Oklahoma market. Much more land, less scarcity. NY, Cali, NE market having extreme housing shortages so ADU market is healthier there.

Agreed that you should do research but Cali market is likely good spot for smaller efficiency units.

Denise Supplee · Answer

@Neetu Patil Hello, Before you do any add-ons, you should check the zoning and building requirements for your locality. Each one is extremely different. At the least you would need building permits, I would think. Best of luck to you!

Caleb Brown · Answer

To do any additions you will need an OK from the city along with permits. You also need to know if zoning allows it. Some people get away with doing it under the radar but eventually they will get caught, fined and shut down. One other thing to consider is utilities, that can be expensive.

Bruce Woodruff · Answer

Cali law allows at least one ADU per property as I recall.....but the local municipality will have it's own take. As @Denise Supplee said, check with local Zoning/Planning Departments...and check with the Building Dept as well.

It is not cheap, though, you will have to add Solar to the units as well as other requirements....

How many tenants can i keep in Single family home?

How many tenants can i keep in Single family home?

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