{"id":16078,"date":"2025-03-01T15:24:02","date_gmt":"2025-03-01T22:24:02","guid":{"rendered":"https:\/\/www.neighbor.com\/storage-blog\/?p=16078"},"modified":"2025-02-27T16:45:46","modified_gmt":"2025-02-27T23:45:46","slug":"can-you-rent-out-adu","status":"publish","type":"post","link":"https:\/\/www.neighbor.com\/storage-blog\/can-you-rent-out-adu\/","title":{"rendered":"Can You Rent Out an ADU? A Guide to ADU Rentals"},"content":{"rendered":"\n

You know how important it is to make the most out of your available square footage. If you’ve got a big enough lot, accessory Dwelling Units (ADUs) can be a great way to maximize your property’s earning potential<\/a>. <\/p>\n\n\n\n

Beyond increasing property value (and driving up your resale price<\/a>), ADUs are also a way to provide affordable housing to your community.<\/strong> <\/p>\n\n\n\n

ADUs also make great short-term rentals<\/strong>. <\/em>When you rent out your ADU to residents in the area, you’ll generate passive income<\/a> that can be put toward costs like property taxes or even mortgage payments. (You could even put this money toward your retirement savings). All you’ll have to do is list your property and draft a rental agreement. <\/p>\n\n\n\n

Whether you’ve recently added one or are considering building one, the idea of renting out an ADU for extra income is an attractive option – that is, depending on where you live. <\/em><\/p>\n\n\n\n

Fair warning: Not all states make it easy to build or rent out your ADU.<\/strong>  So, be sure to confirm you aren’t subject to HOA regulations that prohibit ADU construction or ADU rentals <\/em>before<\/em><\/strong> you get started on any home improvement projects. <\/em><\/p>\n\n\n\n

States That Permit ADU Rentals<\/h2>\n\n\n\n

These states have adopted policies or legislation that generally encourage property owners to construct and rent an ADU (also known as an accessory dwelling unit). In many cases, these policies have been drafted in response to affordable housing shortages. <\/p>\n\n\n\n

    \n
  1. California<\/strong><\/li>\n\n\n\n
  2. Oregon<\/strong><\/li>\n\n\n\n
  3. Washington<\/strong><\/li>\n\n\n\n
  4. Colorado<\/strong><\/li>\n\n\n\n
  5. Hawaii<\/strong><\/li>\n\n\n\n
  6. New York<\/strong><\/li>\n\n\n\n
  7. Illinois<\/strong><\/li>\n\n\n\n
  8. Massachusetts<\/strong><\/li>\n\n\n\n
  9. Maryland<\/strong><\/li>\n\n\n\n
  10. Vermont<\/strong><\/li>\n\n\n\n
  11. Rhode Island<\/strong><\/li>\n\n\n\n
  12. Connecticut<\/strong><\/li>\n\n\n\n
  13. Michigan<\/strong><\/li>\n\n\n\n
  14. Alaska<\/strong><\/li>\n\n\n\n
  15. Nevada<\/strong><\/li>\n\n\n\n
  16. Minnesota<\/strong><\/li>\n\n\n\n
  17. Virginia<\/strong><\/li>\n\n\n\n
  18. New Jersey<\/strong><\/li>\n\n\n\n
  19. North Carolina<\/strong><\/li>\n\n\n\n
  20. Arizona<\/strong><\/li>\n\n\n\n
  21. Florida<\/strong><\/li>\n\n\n\n
  22. Utah<\/strong><\/li>\n\n\n\n
  23. Georgia<\/strong><\/li>\n\n\n\n
  24. Oregon<\/strong><\/li>\n\n\n\n
  25. Pennsylvania<\/strong><\/li>\n<\/ol>\n\n\n\n

    States That Restrict ADU Rentals<\/h2>\n\n\n\n

    These states have more restrictive city laws and place less emphasis on promoting ADUs. <\/p>\n\n\n\n

    Local governments in these areas often impose stricter ADU zoning restrictions<\/strong> that make it difficult or expensive to build and rent ADUs.<\/strong> These states may also prioritize single-family zoning or urban sprawl – so building beyond your primary home will be challenging. <\/p>\n\n\n\n

      \n
    1. Texas<\/strong><\/li>\n\n\n\n
    2. North Dakota<\/strong><\/li>\n\n\n\n
    3. South Dakota<\/strong><\/li>\n\n\n\n
    4. Mississippi<\/strong><\/li>\n\n\n\n
    5. Louisiana<\/strong><\/li>\n\n\n\n
    6. Kansas<\/strong><\/li>\n\n\n\n
    7. Missouri<\/strong><\/li>\n\n\n\n
    8. Indiana<\/strong><\/li>\n\n\n\n
    9. Kentucky<\/strong><\/li>\n\n\n\n
    10. Alabama<\/strong><\/li>\n\n\n\n
    11. Tennessee<\/strong><\/li>\n\n\n\n
    12. West Virginia<\/strong><\/li>\n\n\n\n
    13. Idaho<\/strong><\/li>\n\n\n\n
    14. Montana<\/strong><\/li>\n\n\n\n
    15. Wyoming<\/strong><\/li>\n\n\n\n
    16. Arkansas<\/strong><\/li>\n\n\n\n
    17. South Carolina<\/strong><\/li>\n\n\n\n
    18. Nebraska<\/strong><\/li>\n\n\n\n
    19. North Dakota<\/strong><\/li>\n\n\n\n
    20. Iowa<\/strong><\/li>\n\n\n\n
    21. Delaware<\/strong><\/li>\n\n\n\n
    22. New Hampshire<\/strong><\/li>\n\n\n\n
    23. Florida<\/strong><\/li>\n\n\n\n
    24. Wisconsin<\/strong><\/li>\n\n\n\n
    25. Oklahoma<\/strong><\/li>\n<\/ol>\n\n\n\n

      If you live in one of the above states, be sure to review your local zoning laws in depth. <\/p>\n\n\n\n

      \n \r\n
      \r\n
      \r\n

      Can we pay you to store vehicles?<\/h2>\r\n <\/header>\r\n
      \r\n
      \r\n
      \r\n <\/path>\r\n <\/path>\r\n <\/svg><\/div>\r\n

      List your unused space<\/h3>\r\n

      People are earning $1,000s per year from their garages and outdoor space.<\/p>\r\n <\/div>\r\n

      \r\n
      \r\n \r\n <\/path>\r\n <\/svg>\r\n <\/div>\r\n

      Approve your renters<\/h3>\r\n

      You're in control. Approve who rents and the hours of access.<\/p>\r\n <\/div>\r\n

      \r\n
      \r\n \r\n <\/path>\r\n <\/svg>\r\n <\/div>\r\n

      Get paid monthly<\/h3>\r\n

      Sit back and collect automatic payments each month.<\/p>\r\n <\/div>\r\n <\/section>\r\n