How to Start Renting a Mother-in-Law Suite

What is a mother-in-law suite? Can you rent an in-law suite? Yes, and many people do it. Landlords who want to increase their total monthly income can rent portions of rental homes, such as renting a mother-in-law suite, separately from the single-family rental. Here’s what you need to know about renting out this type of unit.

What is a mother-in-law unit?

A mother-in-law unit is an attached but separate living space within a single-family house. A mother-in-law suite could be part of a house since its inception, or it can be an addition. Traditionally, a mother-in-law unit was reserved for family members who wish to stay closer to their adult children instead of living apart from them in their own homes.

Some homeowners may choose to rent a mother-in-law suite along with the full home, but landlords with mother-in-law units on their properties can also consider renting these in-law suites separately.

The pros and cons of renting a mother-in-law suite

If you want to consider making the necessary changes to your rental property to accommodate in-law suite rentals, keep in mind the following pros and cons of your decision.

Pros:

• Even though you may feel that building onto your current rental property to accommodate a mother-in-law unit is expensive, keep in mind that renovations can often pay for themselves over time.
• You can use additional cash flow to pay expenses such as taxes on your rental property or property maintenance fees that you may incur.
• Some rental listing platforms allow you to set parameters around when to have renters in your rental unit and for how long. If you need to use a rental space for other uses, you can adjust your desired rental dates and allow the space to be available for rent.
• Higher demand for secondary units can also increase your property’s listing price if you decide to sell your rental property.

Cons:

• The responsibility of finding suitable renters for an in-law suite might overwhelm some landlords. To help alleviate these concerns, you can use a renter screening tool to ensure you’re renting to individuals who will prove to be responsible for the care of your rental property.
• Depending on space constraints, you may have to impose occupancy limitations when you rent an in-law suite. These occupancy limits may mean that you need to be selective when considering the size of families of prospective renters.

Can I rent my in-law suite?

Local ordinances determine whether you can rent your mother-in-law suite. To learn more, you could contact your local zoning office and ask about the different laws that apply to your property. You might find that your area either allows or prohibits renting a mother-in-law apartment altogether.

If zoning isn’t in your favor, don’t worry. You could obtain a variance or an exemption from building regulations to help you rent an in-law suite.

However, keep in mind that these permits can be expensive, depending on your location. The process can also entail other requirements, such as amendments to your property’s insurance policies and other requirements.

Tips to follow when renting an in-law suite

You can decide to rent an in-law suite for a long term (six months to a year, with the option of lease renewal) or short periods (such as a few days, a few weeks, or less than three months). Both options are valid, but both have their benefits and disadvantages as well. You may want to experiment with short-term rentals to determine whether this option works for you and your family.

• Use a trusted listing management tool. If you’ve never used this resource in the past, a listing management tool can help you stay organized and arrange the times you want to use for renting your property.
• When evaluating a potential renter for a mother-in-law suite, be sure to conduct a background check to determine suitability as a potential renter for your in-law suite.
• If you are building an in-law suite as an add-on to an existing structure, you may want to research similar rental offerings in your area to determine a competitive rental price for the unit.
• If you have an existing in-law suite as part of the rental property, you may want to consider updating the room’s design and amenities to provide the best experience for your renters.
• If you plan to rent a mother-in-law suite for a short duration of time, consider implementing a specific set of policies that apply only to short-term renters. For example, you may not need to undertake an extensive background check for an individual renting your mother-in-law suite for the weekend, but you still may want to ask a few screening questions.
• For long-term renters, a background and income check can help you make sure that the individual will be able to cover the rent for your mother-in-law suite.
• Ensure you’ll be willing and capable of putting as much attention into the maintenance and repairs of an in-law suite as you would with a larger property. Don’t let the size of a space deceive you into thinking that maintenance may be easier with a small unit than a large apartment complex.
• Be honest with new renters about your expectations for the rental agreement. Communication will help you address minor problems before they escalate into larger issues.

While property management for an in-law suite can result in some amount of attention and time on your part, it can also create some additional income for you.

As you evaluate rental property potential for an in-law suite, you can determine the best ways to use the unit for rental. If you want to get a feel for renting a mother-in-law suite, start with weekend or short-term rentals. As you become more comfortable with this type of rental arrangement, you can consider renting a mother-in-law suite to renters for a longer duration of time.

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Zumper's team of rental experts provide you with the latest rental tips, trends, and local laws to help you find great renters, lease your property, and optimize your rental income.