Who will live in your new ADU? During the exploring and feasibility stage, perhaps you already found somebody, whether that be yourself or a relative or a friend, to live in the newspace. Will they be paying rent, or will you be covering their expenses? If you decide that you want to rent the space and collect rent (there are often different local ordinances surrounding short vs. long-term rental; check your town’s ordinances and zoning bylaw for more information), first you need to set the rent. A good rule of thumb is to charge 1% of the value of the property as the monthly rent. So, if the ADU is worth $150,000, then charge $1,500 in rent per month. Other financial considerations include how the utilities (like water, electricity, and internet) are being metered for the ADU and whether the tenant is paying for these costs out of pocket or if you will incorporate them into the rent.

If you don’t already have a tenant lined up, there are many places to list your ADU for rent. Your community likely has a place to post rentals, like a ListServ or Front Porch Forum. Other options include Zillow, TurboTenant, and RentRedi. There are many legal obligations that landlords have to tenants. DHCD has an information page and fair housing guidance. The Vermont Landlord Association provides public and member resources, including legal forms and leases to support good landlord/tenant relations. Honoring rights and limiting liability exposure can save time, money, and headaches. Here is an information page from New Hampshire DOJ about landlord and tenant rights. More information here from New Hampshire Legal Aid.

See also: SELLING