Are Property Managers Needed for Your Property's ADU?

An accessory dwelling unit (ADU) is a secondary living space located within your property. This can be attached to the primary residency, typically called Junior ADU (JADU), or detached as its own structure. In recent years, the popularity of ADUs has grown particularly in urban and suburban areas like Long Beach. For property owners, an ADU offers an opportunity to enter the real estate market while keeping the primary investment lower than if you were to purchase a single-family home. Many do it themselves, inclined landlords may be able to manage the ADU on their own, for others, it may be beneficial to hire a property manager.

Below, we’ll go over how a property manager can help you save time and money when managing your ADU.

Responsibilities when Managing an ADU

Managing an ADU requires regular attention beyond general maintenance. This includes a number of administrative and operational responsibilities. As a landlord, you’re expected to market your unit, screen prospective tenants, prepare a legally sound lease, and collect rent, among others. Properly keeping track of the costs associated with renting out an ADU ensures that deductions can be verified and your property remains compliant with all relevant laws. The time necessary to commit to an ADU as a landlord varies depending on the local laws and your tenant. Landlords who work full time or don't live on the premises may find these demands disruptive to their day-to-day life. In some cases, the amount of time required to manage a single ADU can average to a part-time job. A property manager can help to give you that time back while giving you peace of mind.

Maintenance and Tenant Expectations

An ADU may seem relatively easy to manage due to its general size; however, even a single unit introduces recurring maintenance and demands that your tenant may expect when renting your ADU. Some responsibilities include ensuring plumbing, electrical, HVAC, and gas systems are up to code and working as intended. These tasks, along with appliance maintenance, oftentimes require sourcing qualified contractors, scheduling repairs, and confirming successful repairs to avoid repeat issues.

Quick response time is a critical factor in order to maintain tenant satisfaction. Delays in addressing and resolving the maintenance concerns can result in a strained relationship with your tenants. In severe cases, it may involve legal disputes. Tenants generally expect quick responses to their maintenance requests and equally fast solutions, especially for essential services such as water, heat, or electricity. Preventive maintenance is a great way to stay ahead of costly repairs. Regular inspections of the home, inside and out, should be done in order not to be caught off guard. Overlooking some of these measures can lead to expensive emergencies that are more costly than routine upkeep.

Benefits of a Property Manager for Your ADU

Property managers offer a number of services that absorb a large number of responsibilities associated with managing an ADU. They generally handle tenant acquisition by marketing your unit across multiple offline and online platforms to cast a wider net. They offer screening services to check a prospective tenant’s credit score, rental history, and proof of income. They’ll manage rent collection, which can reduce the likelihood of missed payments. 

Additionally, property managers have resources many landlords lack, including legal help and a network of contractors and tradesmen needed to address maintenance issues quickly. Many times, these contractors have negotiated rates that can be more cost-effective than finding your own workers. 

Managing an ADU is a lot like having a new part-time job; it requires attention, availability, and regulatory awareness. Managing an ADU on your own can definitely reduce some costs. However, it demands consistent involvement and willingness to handle not only the administrative responsibilities, but the maintenance and operational details as well. For those uncertain about which path to take or who need help managing their Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online.