Currently building ADU, and marketing Main Home for rental.

Member since 2022 · 24 posts · 6 votes

I am in the process of building a detached adu garage conversion, almost done with plan check. Will most likely be signed off in less than a month.

I will be putting up the main house as a rental in the next few weeks.

I will most likely have new tenants as construction happens. I will inform them once the home is advertised.

How should I handle this as I will most likely need access to water and electricity?

My idea was to offer a utility credit until construction is complete.

Have any of you run into this scenario?

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Nicholas Coulter

Real Estate Agent · Southern California · Member since 2019 · 681 posts · 281 votes

@Jeffrey Suarez Be very up front with the lease. I would say if there are multiple restrooms pick one and stick to that one. If you can do it for a short time then go into a regular lease is great. I would set a lease for the time that youll be using the electric and water then sign another completely new lease with higher price. Let me know if you have any other questions!

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
4y
Quote from @Jeffrey Suarez:

I am in the process of building a detached adu garage conversion, almost done with plan check. Will most likely be signed off in less than a month.
I will be putting up the main house as a rental in the next few weeks.
I will most likely have new tenants as construction happens. I will inform them once the home is advertised.
How should I handle this as I will most likely need access to water and electricity?
My idea was to offer a utility credit until construction is complete.
Have any of you run into this scenario?

I would be very upfront in the lease on what you are going to be doing, and during that time. I would separately meter the electric and water usage for construction and provide them with a monthly credit is how I would do it. Or you can credit them a flat fee. Make sure that you also coordinate working ours with them, for example when you tell workers they can work 8-4 they will start at 7 and that gets tenants upset pretty quickly, as does saturday work.
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Nicholas Coulter
Real Estate Agent · Southern California · Member since 2019 · 681 posts · 281 votes
4y
@Jeffrey Suarez Be very up front with the lease. I would say if there are multiple restrooms pick one and stick to that one. If you can do it for a short time then go into a regular lease is great. I would set a lease for the time that youll be using the electric and water then sign another completely new lease with higher price. Let me know if you have any other questions!
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Jeffrey Suarez
OP
Member since 2022 · 24 posts · 6 votes
4y
Quote from @Nicholas Coulter:

@Jeffrey Suarez Be very up front with the lease. I would say if there are multiple restrooms pick one and stick to that one. If you can do it for a short time then go into a regular lease is great. I would set a lease for the time that youll be using the electric and water then sign another completely new lease with higher price. Let me know if you have any other questions!

good idea on the separate lease, or at least I could do a lease change in writing with a cheaper rent for a certain amount of months.
We wouldn't be using the tenant restroom, there is no need to go into the main home as the new adu is 20ft away from the main house. I would just fence off the area as if it were a construction site, and probably rent a porto potty
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Nicholas Coulter
Real Estate Agent · Southern California · Member since 2019 · 681 posts · 281 votes
4y
@Jeffrey Suarez Awesome plan! Let me know if there is anything I can do to help you guys out!
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