Renting & Move-In

After your final inspection, your ADU is ready for move-in! This might be you, a friend, a family member, or a tenant. There are many benefits to sharing your property with a tenant, but renting also comes with many responsibilities – make sure you have a good sense of the laws governing rental agreements and think about the issues that might arise from welcoming a new neighbor into your space.

Understand what it takes to rent out your ADU
Consider affordable pricing for your unit
Make a long-term plan for the care and upkeep of your ADU

Project Timeline

The entire ADU project can take as little as 6 months to complete or as long as 18 months in a larger city or with a complicated project.

FAQs

Here are a few of the most frequently asked questions about renting and move-in:

Can I rent my ADU as an AirBnB or other short-term rental?

Rules about short-term rentals (AirBnBs and VRBOs) vary between different towns and cities. Check with your local planning staff about what’s allowed.

Can I eventually sell my ADU separately from the main building?

Condominium conversions are governed by Massachusetts General Law Chapter 183A, which is not regulated or amended by the new ADU law. Massachusetts Property owners outside of Boston should speak to a trusted legal or real estate expert to discuss what options might be available. In Boston, ADUs can typically be sold separately. Check with your municipality to confirm.

Can I rent out my ADU?

Yes! Renting out your ADU is a great way to generate additional income and provide housing for your community. For more information and support, see Move-in & Renting.

Note that short-term rentals (AirBnBs and VRBOs) may not be allowed in your location or may be subject to additional regulations.

When is my ADU ready for move-in?

Typically as soon as the final inspection is completed your ADU is ready for move-in, but you should confirm if you need items like a Certificate of Occupancy, an ADU registration, or other items before people can move in. You also need to make sure utility services are set up, an address is established, and other relevant preparations are in place.

What do I need to know about becoming a landlord?

Renting an ADU comes with many responsibilities, including understanding local and state housing laws, executing a lease, finding and managing a tenant, and maintaining a rental property. It’s important to understand the laws as they may affect things like future rent increases, changing use over time, evicting tenants, and moving family into the unit.

How to Rent or Move Into Your ADU

Before You Begin: Confirm the new street address for your ADU. You’ll need this street address to establish utility services and to set up your lease.

In the Pioneer Valley?

Pioneer Valley ADU Accelerator provides technical support for homeowners that are interested in building an all-electric, modular or panelized detached ADU in the Pioneer Valley.

STEP 1 Complete Preliminary Steps

Prepare to rent your unit by getting insurance, setting up utilities, and developing a plan to handle the finances.

STEP 2 Understand Rental Laws

You will need to understand all the laws related to being a landlord, especially around discrimination. See the resources linked here for overviews of relevant laws and other resources, trainings, and programs that might be available, and ask local staff for even more localized guidance you should know. Some homeowners hire a realtor to provide professional guidance on becoming a landlord.

Resources

STEP 3 Set the Rent

Maximizing the rent is often not the only consideration – setting a fair rent a bit under market rate will help you attract and keep good tenants. Consider pricing your unit so that it is affordable for the local workforce and families who may not be able to afford high rents.

Many homeowners are motivated to rent their ADU affordably to community members because they serve essential roles and often have difficulty finding housing that meets their needs. If you financed your construction with a loan, consider the loan length, interest rate and any reserve funds you have as well.

STEP 4 Write Your Lease

Make sure your lease (or rental agreement if it is month-to-month) clearly identifies all the expectations for you and your future tenant. You will need a rental application to give to prospective tenants and a lease or rental agreement if it is month-to-month. Search online for “sample leases” to find resources. Once you select a tenant, you should collect a security deposit and first month’s rent when you sign the lease. Conducting a move-in inspection with your tenant is also a good idea.

STEP 5 Find Your Tenant

Research how to successfully advertise your ADU and select a good tenant. Along with word of mouth or posting your rental online, you can also contact nearby schools, faith communities, or other similar locations to see if any teachers, staff, or community members are looking for housing.

Typical methods for advertising rentals include sites like Craigslist and other online listings; neighborhood-based email list-servs; and posting a “for rent” sign on your property. Make sure to look up local rules about real estate signs, which may limit the size, quantity, and other characteristics of your signage.

STEP 6 Manage Your Rental Unit

Think through a long-term plan for the care and upkeep of your ADU, how shared responsibilities will be split, and how to address any issues that might occur with your tenant. Make sure you understand laws about topics including:

Maintenance responsibilities
Giving notice before you or maintenance providers can enter the unit
Rent increases
Addressing conflict
Eviction

You may need to register and report details on your rental ADU, even if it is occupied by family members. Check with local staff to confirm any registration and/or reporting requirements.