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Who can occupy an ADU? Is the owner required to reside on the same property as the ADU?

Homeowners do not have to live on the same property since ADUs are intended as additional living space for family members, guests, or renters. The recently passed Assembly Bill 976 takes effect on January 1, 2024 and allows homeowners to rent out ADUs, regardless of owners' residency on the property

Tenant with keys in hand to a rented ADU unit

Typically, an ADU can be occupied by anyone as long as it is legal and compliant with local regulations. The owners of the ADU usually can occupy the unit themselves or rent it to others on a short-term or long-term basis. However, in some instances, local zoning laws or homeowner association (HOA) rules may require the owner to live on the same property as the ADU.

Fair housing laws apply when renting out ADUs and prohibit discrimination based on specific protected characteristics like race, religion, and disability. Some jurisdictions may regulate the minimum length of time the unit can be rented and the number of tenants living in the ADU.

It is essential to know the applicable laws and regulations before building or renting an ADU to ensure it is legal and compliant. Consider consulting with a real estate professional or a legal advisor to better understand the occupancy requirements that may apply to your property.

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