Step 7

Step 7: Move In and Operate Your ADU

Congratulations! At this stage, your ADU is now built and ready for occupancy. One of the most important decisions to make as a landlord is setting your rent and finding a tenant.  There are also important financial considerations and information about operating your ADU to keep in mind.

Action Items:

  • Set your rent

  • Select your tenant

  • Regular maintenance of constructed ADU

Get Ready For Occupancy

Setting Your Rent

If you are renting your ADU, setting a rent price is an important part of being a landlord.  A good place to start is researching what others currently charge for similar units in your area. 

Keep in mind that there is the City's Tenant Protection Program, state, and and federal laws that landlords are required to follow to prohibit housing discrimination.

Selecting Your Tenant
  • Choosing a tenant requires a fair and objective applicant screening process. Here are some recommendations for selecting a tenant:

  • Use a rental application

  • Develop fair criteria for how you will evaluate all applicants

  • Conduct a credit check

  • Require references and talk with them

  • Use a fair and legal process to select a tenant

There are many places where you can advertise for a tenant. Ask friends and acquaintances if they know of anyone who is looking for a place to rent. There are also for profit and local non-profit agencies that can assist in finding tenants.  One option would be to participate in SHRA's Housing Choice Voucher Program. Find information about this program and more tenant and landlord resources at the link below. 

    Landlord and Tenant Resources >>

Financial Considerations

How Does This Affect My Property Taxes

Constructing an ADU may increase your property taxes due to a higher assessed value of your property. To learn more about how constructing an ADU may affect your property tax bill, please contact the Sacramento County Assessor.

    County Assessor Webpage >>

How Does This Affect My Utility Bills?

Utility bills, such as electricity, gas, water, sewer, and trash, are charged by usage and will likely increase by owning an ADU. Please contact each utility provider below for more information on utility billing for ADUs and potential bill estimates.

Step 7: Utilities

Learn more about specific utilities and the impacts it may have on your bills.