Property Maintenance

Are ADU (Additional Dwelling Unit) Rentals a Good Idea?

Filed Under: Business Management, Property Maintenance, Property Management, Property Management Software, Real Estate Investing, Rental Laws & Taxes

What is an ADU?

An ADU (Additional Dwelling Unit) is a secondary/independent living unit on the same land as a primary residence unit. ADU’s can be attached to a primary residence or detached. It would most likely consist of a kitchen, living area, bathroom and separate room or space for bed.

It’s typically smaller in size and suitable for either a single person or a couple.

Many cities are encouraging developing ADU’s due to a shortage of housing and also rentable units compared to demand for affordable housing.

Government data from the Federal Housing Finance Agency and California Department of Housing and Community Development shows ADU’s are becoming popular.

The number of ADU are growing. Here is data for California:

You can also see the value of properties with ADU is also growing, here is data for California:

What Steps Are Required to Create an ADU?

If you want to create an ADU, you should take into consideration the following:

Cost – What kind of funding/loan will you need?
Type of ADU – What type of ADU are you building?
Local Regulation – What type of regulations does your local municipality require?
Design the ADU – Find an architect or designer to create plans.
Permits – Get necessary permits from your local planning authority.
Contractor – you’ll need to hire a licensed contractor, unless you’ll build yourself.
Construct – Get it built and inspected by municipality inspectors.

Cost of ADU

Building an ADU is a significant expense. You should have a good idea of cost before you start. Here are some estimates based on size. The range is determined based on your location and design choices.

Type of ADU

There are a variety of types of ADU; you should determine if you can use space in the primary residence to convert it to an ADU or if you have enough space in your lot to construct one.

Here are some of the common types to consider:

Detached ADU
Attached – addition to main house
Garage converted to ADU
Basement converted to ADU

Local Regulations Governing ADU’s

You’ll need to contact your local planning authority to understand ADU rules. Some things to consider are:

Zoning Laws – Can you build an ADU in your neighborhood?
Size limits – What’s the maximum size for an ADU?
Setbacks – How much space do you need from your neighbors to where you can place an ADU?
Height Restrictions – How high can roofline and ceilings be?
Parking – What kind of parking if any do you have to provide?
Occupancy – Are there limits to the number of people allowed in ADU? Can it be used for long and short term rental?

Designing the ADU

You will need to find an Architect or Designer you’re comfortable with to come up with plans that meet your cost requirements and also satisfy local regulations.

Permits for an ADU

You and your Architect should set up a meeting with your local planning department to determine what kind of permits you need to start the project.

Typically, you’ll need:

Building permit
Zoning Approval
Site plan approval
Utility permits
Fire safety compliance

Getting a Contractor to Start Building your ADU

Once you’ve gotten the appropriate permits, you need to start construction. There are two key decisions you need to make. First, will you build yourself or use a contractor? Second, if you use a contractor finding the right one for you.

Make sure your contractor has an up-to-date license.

Constructing an ADU

Once you have started construction, at the end of each stage of the build, get it inspected for approval by the planning department. Typically, different stages where you’ll need an inspection are:

Foundation
Framing
Plumbing
Electrical
Final Inspection

Inspectors are your friend; getting it approved by them can ensure you’re getting quality work.

Should I Create an ADU from Scratch or Prefab?

One other consideration that can affect costs is should build ADU from scratch or prefab?

Typically, custom construction takes longer and is more expensive. However, you can customize the design to your liking so it better matches the main residence. It also tends to have higher resale value.

Whereas prefab is limited in design, which can make it look more cookie-cutter. It can also have a lower resale value. However, construction can be done faster, and it can also lower costs. Sometimes it’s easier to get a permit as well.

What Are the Costs and Benefits of an ADU?

An ADU can be a great investment. The costs are significant based on the size, location and design choices, as we showed earlier.

There are many benefits, such as:

Rental income
Property value increase
Flexible space for family needs: aging parents, adult children, guest space
Affordable housing – Help your community by providing affordable housing.

Should You Consider Section 8 Housing for your ADU?

Section 8 housing means you’re willing to accept low-income tenants where a portion of the rent is paid by the government. There are many advantages and disadvantages to consider.

Advantage:

Guaranteed rent payments
Larger pool of potential tenants
Lessens the risk of rental loss

Disadvantage:

Property inspection to meet Section 8 standards
Rent must comply with government regulations
More government administrative work

Do You Want To Accept Pets in ADU – Is It Pet-Friendly?

Accepting pets in your ADU has many advantages and disadvantages.

Advantage:

Larger pool of potential tenants
Higher Rent (Pet Fee, Pet Rent)
Tenants tend to stay longer

Disadvantage:

More property damage
Noise issues
More cleaning when tenants move out

Should You Make Your ADU a Short-Term Rental?

It can be profitable to have your ADU as a short-term rental (AirBNB) rather than long-term rental. There are many advantages and disadvantages.

Advantages

More rental income
Flexibility for your own usage of ADU
Tenant turnover is easier

Disadvantages

Zoning restrictions – Many cities do not allow it.
More management – since there is frequent tenant turnover
Operating cost – frequent cleaning, furniture, Utilities

How can SimplifyEm help with your ADU?

If you are renting out your ADU. You need software that does an excellent job of:

Keeping track of your tenants account and balance
Great communication capabilities to stay in touch with your tenant and have everything recorded.
Having your records ready for tax time.

SimplifyEm Property Management Software does all of this and is the easiest to use.

Frequently Asked Questions (FAQs) about ADU

What is an ADU?
ADU (Additional Dwelling Unit) is a secondary living space in the lot of a primary residence.

It can be a detached space or attached (such as a converted garage or basement) as an independent unit consisting of a kitchen, living area with a bedroom space, and bathroom.
What are the costs and benefits of an ADU?
The cost of an ADU consists of permit to build as well construction cost. The factors that affect its cost are size of space, design decisions you make, as well location. It can be very expensive to construct running into several hundred of thousands dollars.

It provides many benefits and gives you a flexible space to deal with elderly parents, adult children, as well as guests.

You can also rent it out for income. Having an ADU on a property typically increases property value.
Should I consider a Prefab ADU?
A Prefab ADU is absolutely worth considering. It provides many benefits, such as lower construction costs as well as a faster time to build.

Some limitations of Prefab are you have less control over design; you can’t have all the design elements you want. It’s limited to whatever is offered by the prefab company.
Do ADU’s make an affordable rental?
ADU tends to be smaller than Single Family homes. So they can make for ideal space for single people or young couples on a limited budget.
Can an ADU be used for Section 8 housing?
You should check with government authorities as to what qualifies for Section 8 housing. Typically, a fully functional ADU can be used for section 8 housing.

Turning your ADU into Section 8 housing gives you the benefit of a regular rent check from the government. However, you do become subject to government rules on how much rent you can charge as well as filling out government forms and paperwork.

Sources:

https://www.fhfa.gov/blog/statistics/trends-in-median-appraised-value-for-properties-with-accessory-dwelling-units-in-california

https://www.hcd.ca.gov/policy-and-research/accessory-dwelling-units

How To Manage a Pet-Friendly Apartment for Dogs

Filed Under: Property Maintenance, Property Management, Property Management Software

There are 59.8 million dog-owning households in the United States, according to the American Veterinary Medical Association.

So if you don’t accept dogs in your rental property, you are leaving out a lot of potential tenants for your rental property. This can mean not getting maximum profits for your property.

However, if you do accept dogs, you have to deal with the issues that dogs can cause, such as dog odors, stains they can cause, and also the damage they can create to your rental property.

You should clearly communicate maintenance responsibilities with your tenants, and it should be made clear in the lease. There should also be a proactive maintenance plan to deal with damage they can cause.

Pet Deposit for Dogs

You can charge a pet fee or pet rent (non-refundable) to proactively pay for normal wear and tear damage done by dogs.

A pet deposit for dogs is paid upfront and refundable, similar to a security deposit. It safeguards against potential damage done by dogs, such as scratched floors, chewed-up carpets, or stains.

Since it’s refundable if no damage occurs, the money is returned to the tenant.

Problems that Dogs Can Cause: Dog Urine Odor, Dog Stains

Dogs can be joyful companions; they also can introduce challenges to a property. Some common problems are:

Dog urine odor
Stains on carpets and floors

Dog Urine Odor – When dogs are untrained, they can leave urine on floors and carpets. This can leave a lingering odor that seeps into the house, making it difficult to remove.

Dog Stains – Urine stains, paw prints, and dog scratches can leave permanent spots and marks on flooring, future, and walls. This can lower the value of your rental property.

Solutions to Problems Caused by Dogs – Carpet Cleaner, Urine Smell Remover, Lease Clauses

Now that you know the problems dogs can cause, as a property manager, you should proactively think of solutions such as:

Carpet cleaners
Urine smell remover
Lease clauses for renters

Carpet Cleaner – A high-quality enzyme-based cleaner that breaks down urine molecules rather than just a scent masker is absolutely required. Regular steam cleaning to get rid of stains in carpets should be a regular part of the maintenance plan for your rental property.

What is the Best Carpet Cleaner for Dog Urine?

According to Spruce Pets the best three carpet cleaners to deal with dog stains and urine are:

Oxiclean Carpet Stain Remover
Kids ‘N’ Pets Instant All-Purpose Stain & Odor Remover
Angry Orange Ready-to-Use Citrus Pet Odor Eliminator Spray

Urine Smell Remover – Enzyme-based urine removers are designed to neutralize pet odors at a molecular level. They are effective because they break down the uric acid in urine, which is the main culprit leading to odor.

You can also try home-made natural methods. Mix equal parts white vinegar and water in a spray bottle and spray the area. After cleaning, sprinkle baking soda to absorb urine odor.

Lease Clauses – One of the best things you can do as a landlord is to clearly depict tenant responsibilities in the lease agreement. You should think about lease terms about pet damage, tenant regular maintenance activities such as deep cleaning and proactive repairs for damage done by their dogs. Also consider additional pet rent and pet deposit for damage to be fixed after the tenant moves out.

How can SimplifyEm help if your tenants have Dogs?

SimplifyEm Property Management Software provides key functionalities to manage dogs in a rental property:

Rental lease agreements with E-signature that can have comprehensive lease terms to handle dogs as pets.
Keeping track of rent, pet rent, and pet deposits for accurate tenant bookkeeping
Schedule Task and Work Orders to help you proactively maintain your rental property.

Frequently Asked Questions (FAQs) – on Managing Dogs in Apartments

Should I allow dogs in my rental property?
The benefits of allowing dogs in your rental property are many:
- Larger tenant applicant pool: Many renters have pets, so more people will consider your property.
- Higher rent: Since fewer property managers are willing to accept pets, you can charge pet rent and/or pet fees which increases your income.
- More likely to stay longer – Since Pet owners have fewer rental options, they are most likely to stay longer.
The Costs of allowing dogs also have to be considered:
- Property damage: Dogs are known to create scratch marks, chew through items and leave a lingering odor
- Noise issues: If you’re managing a multi-unit property, you have to consider the noise dogs can cause which could disturb other tenants.
- Liability: Dogs can bite someone, which could create legal exposure for you. You should be well insured.
What are the properties of an effective carpet cleaner for pet urine?
A carpet cleaner for pet urine should have the following qualities:
- Enzyme based formula that can break down uric acid, which causes an unpleasant smell from urine.
- It should also neutralize odor.
- Urine can leave a yellow stain, your carpet cleaner should have an oxygen-based or hydrogen peroxide-based stain remover.
- It should be pet-safe.
Is it good to be considered a Pet Friendly Apartment?
There are many benefits to being considered pet friendly:
- Larger pool of tenants
- Ability to charge higher rent
- Tenant likely to stay longer
- Potentially more responsible tenants since they are responsible for pets.
- Helps your property standout in a competitive market
There are some costs you should consider as well:
- Property Damage Risk
- Odor maintenance
- Noise and liability risks

Sources:
https://www.avma.org/resources-tools/reports-statistics/us-pet-ownership-statistics

https://www.thesprucepets.com/best-carpet-cleaner-solutions-for-pets-4174466

How to Effectively Manage a Cat Friendly Apartment – Dealing with Cat Odors and Cat Stains

Filed Under: Property Maintenance, Property Management

As a property manager, accepting cats in your rental property can be great to get more potential tenants to consider your property. It can also help you charge premium rent. According to the American Veterinary Medical Association there are 42.2 million cat owning households.

However it also means dealing with the issues cats can cause; such as cat odors, stains they make, and also the damage they can create to your rental property.

It’s important for you to have a proactive plan and communicate with your tenants how to manage these issues.

Problem that cats cause: Cat Urine Odor, Cat Stains, Cat Damage

One of the biggest problems that cats can introduce is a lingering cat odor that stays in the property. Several of the sources are:

cat urine
cat litter box
general smell due to cat hair

Cats are also known for creating stains if they pee on wood or carpet flooring. This can be hard to remove.

Finally cats are known to scratch and bite surfaces ,walls, wires, and also furniture. This can lead to a lot of damage.

All this can lead to damage to your property and making it less attractive to future tenants.

So you have to manage this proactively with your tenants.

Solutions to Manage Cat Problems in Your Rental Property – Carpet Cleaner, Urine Smell Remover, Enzyme Based Cleaner, Lease Clauses

You have a variety of tools to manage the problems cats can cause:

Cleaning up stains and odors after they happen
Proactive strategies that discourage cats from causing damage
Making sure your tenant’s lease incents them to properly manage their cat

What is the Best Carpet Cleaner for Cat Urine?

One of the biggest problems with cat urine is that it has uric acid, which creates a lingering smell. Another factor is that it has sulfur. This can cause a lingering smell that unfortunately encourages cats to pee in that same location.

So it’s important to deal with this issue head on. Also make sure the cleaners you are using are able to deal with uric acid and sulfur.

Some potential solutions to try:

Baking Soda
Vinegar and water
Enzymatic cleaner which we’ll discuss in the next section

It’s important to test a small area to see if your solution is effective, prior to trying it everywhere.

Are Enzyme Cleaners for Cats Effective?

You can find enzyme based cleaners that are very effective, but please make sure they are effective and eliminate uric acid. Some potential store bought solution to try:

Rocco & Roxie
Angry Orange

What are the Best Ways to Manage the Litter Box?

The first line of defense against cat odor is the litter box. Place your litter box in a place that has great air flow. You might want to also consider an air purifier strategically located close to the litter box.

It’s also critical to clean the litter box regularly. Otherwise the smell will linger and your cats will be discouraged from using the litter box.

Another great tip is to consider using a bit of baking soda in the litter box to lessen the impact of the odor.

Natural Deodorizers to Manage Cat Smells

If you don’t want to use store bought solutions, there are some natural home remedies that are very effective for eliminating cat odor such as: vinegar and water, baking soda, and activated charcoal that you could use.

Regular Cleaning to Get Rid Off Cats Odors

One of the best ways to prevent problems with cat odors is to encourage your tenants to have a proactive plan:
Have a litter box that they maintain weekly
Regularly wash items that can hold the odor such as blankets and curtains
Regularly vacuum carpets and clean flooring with use of vinegar and water solution and baking soda

How to Discourage Cats from Causing Damage to Your Property

Beyond odors, cats are notorious for biting and scratching that can damage your property.

There are several smells that cats do not enjoy, which are pleasant to humans such as lemons and rosemary. Having those smells around furniture that cats like to scratch bite is a great way to discourage them.

Cats are also known to bite wires, which can cause electric damage and also potentially harm them. You can buy a wire protector which discourages cats from damaging wires.

You can also make sure your tenants have a scratch post for cats so they’re less likely to scratch your rental property.

What should you have in your lease if your tenants have a cat?

One of the best ways to protect your property from cat damage is to have a clear agreement as to the tenant’s responsibility in terms of managing their cats. Some things you should consider for the lease agreement are:

Pet Deposit – to be returned for good management of cat or to be used for cat damage
Pet Rent – Additional Rent charge for cat
Pet Damage clause – what exactly will happen for damage done by cat
Tenant/property management regular maintenance – Schedule of responsibilities (weekly, monthly and quarterly)

How can SimplifyEm help if your tenants have cats?

Managing tenant with cats requires:

Great communication capabilities
Great scheduling capabilities
Ability to have a customized lease and E-signature

SimplifyEm provides all these features in our property management software.

Frequently Asked Questions (FAQs) on managing cats in apartments

Should I allow cats in my rental property?
There are pluses and minuses to allowing cats in your apartment. The pluses are you’ll be more tenant applicants and potentially can charge more rent.

The negatives are you’ll have to take into account lingering cat odor even after the cat moves out and potential damage from cats to your apartment.
Can I clean cat urine out of my carpets?
If you get cat urine in your carpets, it’s important to deal with it quickly and proactively. There are home remedies that can help such as vinegar and water solution. Also there are enzyme based store bought products that are very effective, make sure whatever you use can eliminate uric acid odor, which is the biggest factor in cat urine odor.
What are natural home remedies for cat odor?
There are some natural home remedies for cat odor that you can use such as vinegar and water, baking soda, and also hydrogen peroxide.

Sources:
https://www.avma.org/resources-tools/reports-statistics/us-pet-ownership-statistics

How Can You Get Rid of Gnats?

Filed Under: Property Maintenance, Property Management

Gnats are irritating and can cause health issues. According to Orkin, gnat bites can cause skin swelling and itchiness. If you continuously scratch, you can develop an open sore, which can lead to bacterial infection.

As a property manager, it’s important to proactively have a prevention strategy. If there is an infestation, you should act on it quickly, since it can grow quickly. For example fruit flies, which are a type of gnat, can lay up to 500 eggs at once.

What Are Gnats?

Gnats are small winged insects. Some common examples would be fruit flies, drain flies, and black flies.

They tend to like moist areas and organic stuff. Some examples of things they like, according to WebMD:

Overripe fruits and vegetables
Decaying plant matter
Fungus

How To Know If You Have A Gnat Infestation

You’ll typically see a group of adult flies around standing water, fruit and vegetables, or plants. It varies based on the type of gnat. For instance, Fungus gnats tend to hang around windows and glass doors. Since they can’t fly long distances, it’s a sign of an infestation close by.

If you have an infestation, identify the places where they live and make it less hospitable for gnats. Since they like moisture, they’re likely to be in the kitchen, bathroom, or around standing water such as overwatered plants or water bowls for your pet.

Something you can do:

Clean the area around sink drains, pour hot water into the drain to keep it clean of debris.
Another good mixture is white vinegar and hot water to keep the drain clean.
Bleach can be used in your drain with plenty of water. Don’t use it if you have a septic system, since that causes damage.
Do not overwater houseplants
Fix leaky faucets, so there is no standing water

How Can You Get Rid of Gnats?

There are a variety of solutions to get rid of gnats that vary from natural remedies, store-bought chemicals, and also professional pest control firms.

1) Natural remedies such as vinegar gnat trap. You can get a bowl full of vinegar and mix it with a couple of drops of dish soap. You can cover it with plastic and poke holes in the plastic big enough for the gnats to enter. The gnats are attracted to the vinegar, but then they can not leave and drown.

According to US Government Research (National Renewable Energy Laboratory) , mustard meal can also help control Fungus Gnats.

2) You can buy gnat traps from the store. They’re usually sticky and yellow. They attract gnats, and they get stuck to them. You can also buy spray from your retail store; just be careful around pets and kids.

3) You can also get a professional pest control firm which can be very effective. You can set up a regular maintenance schedule with them so the infestation doesn’t reoccur. According to Angie’s list, you can expect treatments to cost anywhere from $150 to $250.

How Can You Prevent A Gnat Infestation?

You can prevent an infestation by:

Doing regular maintenance
Getting rid of things that attracts gnats
Having a gnat repellent strategy

1) Regular maintenance is being aware and doing the basic things to prevent an infestation.

Keep drain pipes clean of debris that attracts them.
Don’t overwater your plants
Keep kitchen surfaces clean
Seal entry points from the outside of your house around windows and doors.
Take out trash regularly

2) Getting rid of things that attract gnats is an important prevention step. Sweet and fruity scents are something that attracts gnats.

3) The best gnat repellent strategy is to not be an attractive place for them. Try to have standing water, drain pipes with food bits, the kitchen-counter should be clean, and garbage should be taken out regularly. Beyond that, there are smells gnats do not like, such as peppermint, vinegar, lemon, lavender, and garlic.

Frequently Ask Questions on Gnat Infestation

How do I get rid of gnats from my drain?
The best way is to keep your drain pipes free of food bits and organic matter that they feed on. Regularly pour hot water with vinegar down the drain.
How can I get rid of gnats in my yard?
Getting rid of gnats from your yard is a great way to prevent them from entering the house. The two methods are to let your lawn and water dry between waterings. You can also hang traps in your yard.

Sources:
https://www.orkin.com/pests/flies/gnats/gnat-infestation
https://www.webmd.com/a-to-z-guides/gnats-what-to-know
https://www.angi.com/articles/gnat-exterminator-cost.htm
https://www.nrel.gov/docs/fy05osti/35333.pdf