Rent Control and Tenant Rights for ADUs: What You Need to Know

These units are typically smaller than the main home but provide a private space for renters. With more cities allowing the construction of ADUs, many property owners are opting to build and rent out these small living spaces.

Rent Control: What You Need to Know

Rent control refers to laws or ordinances that limit the amount a landlord can charge for rent and often govern how much rent can be increased over time. While many large cities have enacted rent control measures, the rules for ADUs can vary widely based on location.

1. Rent Control Laws and ADUs

In areas with rent control laws, the regulations may or may not apply to ADUs. Typically, rent control is intended to prevent large rent hikes and offer protection to tenants in high-demand areas. However, ADUs may be exempt from some or all of these protections.

In cities like Los Angeles, San Francisco, and New York, ADUs (often referred to as “accessory units” or “granny flats”) may be subject to rent control if:

• The ADU is rented to a tenant who does not own the property.

• The ADU is located in a building covered by rent control laws (e.g., multi-unit buildings).

• The ADU is a part of the primary residence.

However, if the ADU is newly built and the property owner is renting it out independently of the primary home, it might not fall under rent control laws.

2. Rent Control Exemptions for ADUs

Some cities allow exceptions or special rules for ADUs to encourage more affordable housing options. For instance:

• New construction ADUs: Some areas do not apply rent control to newly constructed ADUs to encourage their development. These units may have a market-based rental price instead of being tied to rent control caps.

• Owner-occupied ADUs: In some places, if the owner lives in the main house and rents out the ADU, the unit may be exempt from rent control regulations.

It's important to check your local laws to determine if an ADU is subject to rent control.

Tenant Rights in ADUs

Even if your ADU is not covered by rent control laws, tenants still have legal rights. Here are some key tenant protections in most areas:

1. Right to Safe and Habitable Housing

Regardless of whether an ADU is subject to rent control, it must meet certain habitability standards. These typically include:

• Proper sanitation: Clean and functional plumbing and waste disposal systems.

• Safety features: Working smoke detectors, fire exits, and secure windows/doors.

• Adequate heating/cooling: Depending on the climate, proper heating or cooling should be available.

Failure to meet these conditions could result in legal actions or the tenant withholding rent.

2. Right to Privacy

Tenants have a right to privacy in their ADUs, even if the landlord lives on the same property. Landlords cannot enter the rented ADU without the tenant’s permission, except in specific situations, such as:

• Emergencies (e.g., fire, flood).

• Routine inspections (with prior notice).

• Repairs or maintenance (with prior notice).

Generally, landlords must give at least 24 hours' notice before entering the ADU.

3. Anti-Discrimination Laws

Under federal and state Fair Housing Laws, tenants are protected from discrimination based on:

• Race, color, or national origin

• Religion, sex, familial status, or disability

• Age, sexual orientation, or gender identity (depending on state laws)

Landlords must treat all potential tenants equally, regardless of these factors.

4. Right to Written Lease Agreements

While some states may allow oral leases for short-term rentals, tenants in ADUs should always have a written rental agreement that clearly outlines terms such as:

• Rent amount and payment due dates.

• Security deposits and refund policies.

• Lease duration (month-to-month or fixed term).

• Responsibilities for maintenance and repairs.

Having a clear, written lease helps prevent misunderstandings and protects both landlords and tenants.

5. Protection Against Unlawful Eviction

Landlords cannot evict tenants without a valid reason. In many states, eviction laws require:

• Written notice of eviction.

• Proper procedure, including the right to contest an eviction.

• Legal grounds for eviction (non-payment of rent, violation of lease terms, etc.).

Evicting a tenant without going through the legal process could result in penalties.

How to Navigate Rent Control and Tenant Rights in ADUs

For Landlords:

1. Understand Your Local Laws: Research rent control regulations specific to your city and the type of ADU you’re renting. Local government websites, legal advisors, and real estate professionals can be helpful resources.

2. Maintain a Written Lease Agreement: Ensure that your lease clearly defines terms, including rent increases, repair responsibilities, and tenant expectations.

3. Offer Safe, Comfortable Living Spaces: Keep your ADU well-maintained, address any safety concerns, and respect tenants' privacy to avoid disputes.

4. Consider Rent Control Exemptions: If your ADU falls under rent control exemptions, make sure you comply with all other local housing laws to avoid legal issues.

For Tenants:

1. Know Your Rights: Familiarize yourself with the tenant protections in your area, even if the ADU is not covered by rent control. Seek advice if you're unsure about your rights.

2. Request Repairs in Writing: If your ADU requires repairs, always communicate this in writing to create a record. This is important if you need to request rent deductions or legal action later.

3. Check Rent Increases: If your rent is increasing, make sure the increase complies with local regulations. In areas with rent control, landlords are often limited in how much they can raise rent annually.