Renting your accessory dwelling unit

Renting your ADU is a great way to create supplemental income while providing much needed rental housing to the community. It’s also an aging in place option. Some Piedmonters have downsized by moving in an ADU and renting out their main house.

No short term rentals allowed

You cannot use your ADU or JADU as a short-term rental. This means you cannot rent it for less than 30 consecutive days.

Family members

You need an ADU permit if anyone is going to live in it, including family members. If you charge rent to your family member, you need to pay the annual rental tax.

If your unit is rent restricted, your family member needs to meet the income requirements. If their household income is higher than what’s allowed, they cannot live there.

Pay annual rental tax

If you rent your ADU or JADU, you need to:

  • File an intent to rent form
  • Pay your annual rental tax

Learn about renting in Piedmont.

Rent restricted units

If your ADU is rent-restricted:

  • It can only be occupied by a low-income or very low-income household.
  • If you charge rent, it must be affordable.
  • You are not obligated to keep the unit occupied.

If you use a pre-approved plan, you need to agree to affordable rent restrictions for your ADU.

Affordability

Each year, the County calculates area median incomes (AMI) based on household size. To determine the rental price maximum, you need to know the renter’s AMI level.

2024 Maximum rent amounts

Unit Size Extreme low (30% AMI) Very Low (50% AMI) Lower (60% AMI) Low (80% AMI)
Studio $818 $1,363 $1,635 $2,115
1-bedroom $935 $1,558 $1,869 $2,416

The affordable rent levels are maximum monthly rents. You can also charge less or no rent.

Deed restrictions

A deed restriction will be recorded against your property deed when the rent-restricted ADU permit is issued. The deed restriction will:

  • Remain in effect for a minimum of 10 years.
  • Stay in force if you sell your property within that time period.
  • Automatically terminate at the end of the period.

Annual certification

You need to file an affordable rent certification every year. This verifies:

  • Income of the household living in the accessory dwelling unit
  • Rent price is affordable to that household

Owner occupancy requirements

If you have a JADU, you need to live on the property. You can live in the main house or the JADU.