Blog Post

What Does an ADU Rent for?

Dustin Edwards • Feb 09, 2023

An ADU Can Be Rented Out

Do you own a house with an accessory dwelling unit (ADU)? Or are you planning on building an ADU on your property to rent it for additional income?


With the cost of living increasing, renting your ADU can help generate a steady income. However, figuring out how much to charge for rent can seem difficult to new landlords.


Below are a few tips and tricks to help you find the appropriate amount to rent your ADU for a while remaining competitive.


Location

Like any investment property, one of the critical factors determining what you can charge for an ADU is the location. The location will form the baseline of rental rates. Many tenants look for specific areas when looking for a rental. Desirable establishments such as schools, parks, shopping centers, and hospitals can significantly affect rent. 


The neighborhood where the ADU is being rented may not affect the rent prices too much. Though, being located in a quiet, friendly community is a bonus.


Size and Configuration

Naturally, the size of the ADU will directly affect the rental costs, the larger the space for rent, the more you can charge for it, though the size isn’t everything. The configuration of the ADU can also affect the rent. For example, an 800 square foot single bedroom, single bathroom (1/1) ADU can be simple to build but difficult to maximize the amount you can charge. Whereas the same size living space configured as a 2/1 or 2/2 can not only be significantly more profitable, in many cases, it can reach a broader market due to being more desirable.


Amenities

Some of the first amenities asked for by tenants are access to a dishwasher, a washer, and a dryer. Being able to include these can help you find tenants. The more amenities you provide, the more rent you should expect. An updated kitchen with granite countertops and stainless steel appliances can be incredibly attractive to tenants.


Many tenants look to the outside as well as the inside of a rental space. Outdoor living areas, either private or shared, can let them go out for fresh air or enjoy the summer sun. Security features such as cameras, alarms, and security lights can provide a feeling of safety inside and outside of their home. Many tenants may also have pets. A
flexible pet policy can expand the pool of tenants looking for pet-friendly rentals. Though allowing pets can be risky as they can cause some damage to the property, this is often circumvented by having specific pet-related addendums on the lease.


Compare Locally

The most straightforward way to understand how much you can charge for your ADU is by comparing similar rentals in your area. If you need more information on how much you can charge, a local property management company can help you price your rental.


Pricing your rental doesn’t need to be complicated. Renting your ADU should relieve financial stress, not cause more. If you are looking for a property management company local to Long Beach, consider calling us at (562) 888-0247, or feel free to fill out our
free rental analysis to see what your rental could yield today.


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By Dustin Edwards 01 May, 2024
Everyone wants to feel safe in their homes. As an investment property owner, it's up to you to decide whether or not to include security measures in your property. Many of the costs associated with the security measures can be included in the rent, meaning not only can you keep your property safe, but you can earn more income in the long run. However, you would still want your tenants to have renters insurance to protect their assets. Today, we’ll discuss the top five security measures you can add to your property and why they're beneficial to you and your tenant. Security Cameras Cameras are probably one of the first security measures people think about when asked about security. Cameras provide more benefits than just surveillance. They provide an extra level of security for the safety of the tenants and their belongings. Additionally, security cameras can be useful when repairs are required. Cameras can aid in supervising repairs and maintenance to ensure you’re receiving the agreed-upon work. During vacancies when the property is empty, security cameras can help keep the property safe from potential intruders. Doorbell cameras are incredibly popular now. They provide the aforementioned safety of a camera that can be accessed remotely, as well as the ability to communicate with visitors. Although one must be careful never to say you're not home, just say you're unavailable to strangers. Security Lights Security lights with motion detectors are another effective tool when adding security measures to your property. These lights brightly if a potential intruder attempts to get near your home. They can provide enough illumination to see the intruder or, at the very least, scare them off. Nowadays, you can find a combination of security cameras and motion-activated security lights, such as the floodlight cam wired plus from Ring . Additionally, because these lights only turn on when motion is detected, they’re more cost-effective than traditional lights with a switch. Illuminate the Property Light generally deters intruders as it's more difficult to hide. Adding lighting to the landscaping can increase the security of the property while creating a relaxing atmosphere. Lights can also be used in other areas of the property to accent features such as trees, benches, or artwork. This can help your property stand out while giving your tenants an additional feeling of safety. Keyless Entry Keyless entry is seen as both a convenience feature and a security feature. They usually use an electronic passcode, biometric data, or grant access through a smartphone app. Physical keys can be lost, stolen, or duplicated. You reduce the risk of unauthorized entry by eliminating the need for a physical key to enter the property. Many keyless entry systems include several features, such as remote locking and monitoring. Although keyless entry is a great new technology for keeping your tenants and properties safe, they’re best used with other security systems. Security Company Nothing beats having an extra pair of eyes on your property for security. This is where security companies like ADT and SimpliSafe come in. While companies may deal with security in varying ways, they aim to protect your investment. While safety is the primary role of a security company, remember that many tenants may be willing to pay more for a premium amenity like a home security company. Keeping your property and tenants safe is incredibly important to the longevity of an investment property. If you’re looking to improve the security of your Long Beach rental property or need help managing your beach city rental property, we invite you to call us today at (562) 888-0247 or fill out our Owner Application online .
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