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Renting an ADU

ADU lease agreement: what it should cover

By the HyreADU research desk. Last checked .

The short answer

An ADU lease agreement covers the same ground as any residential lease, plus the things two homes on one lot share: utilities on shared meters, parking, yard and laundry, trash, noise, and access for repairs.

State and local law decide much of what a lease may say. In California the Department of Real Estate publishes a landlord and tenant guide. This page is not legal advice.

Deposits, entry and repairs

Three topics cause most problems in any rental, and they deserve plain words in an ADU lease. The deposit: state the amount, what it covers and how it is returned, within your state’s limits.

Entry: state how much notice you give before entering, under your state’s rules, and how emergencies are handled. Repairs: say how the tenant reports a problem and how quickly you respond. In California, the DRE guide covers all three and cites the statutes behind them.

The standard lease topics

  • Names of the parties and the address, including the unit number.
  • Term: month-to-month or fixed; check any local minimum rental term for ADUs.
  • Rent, due date and how it is paid.
  • Security deposit, within your state’s limits.
  • Who repairs what, and how to request repairs.
  • Notice periods and rules for ending the lease, under state and local law.

Topics specific to an ADU

  • Utilities: whether the ADU has its own meters, and how shared utilities are split if not.
  • Parking: which space, if any, belongs to the ADU.
  • Shared areas: yard, laundry, trash bins and storage.
  • Access: which path the tenant uses, and notice before you enter.
  • Quiet hours and smoking rules that apply to both homes.
  • Pets, and where they may go on shared ground.

Where to check the law

Landlord and tenant law is set by states and cities. In California the Department of Real Estate’s Resource Guidebook links a 2026 Landlord/Tenant Guide, which its own notes say is informational and not legal advice.

Some cities add rent control or eviction rules that may cover ADUs; see our rent control research. For a lease you will sign, ask a local attorney or a landlord association.

Before the tenant moves in

  • The ADU has passed its final inspection.
  • Smoke and carbon monoxide alarms work.
  • You have photos of the unit’s condition, signed by both parties.
  • Insurance covers a rented unit; see our insuring an ADU research.

A mistake to avoid

The mistake to avoid is renting an ADU with a lease that ignores the shared parts of the lot. Most disputes between owners and ADU tenants are about parking, noise, utilities and the yard. Write them down before move-in.

What to do next: check your lot with the ADU feasibility checker, read the questions to ask an ADU builder, then tell us about your project. Matching is not live yet, so we reply with information, not a quote.

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Questions

Is there a special ADU lease form?

Most owners use a standard residential lease with an addendum for shared areas. Use a form valid in your state.

Can I rent my ADU month to month?

Usually, if it meets any local minimum term for ADUs.

Do tenant protection laws cover ADUs?

Often. It depends on the state and city. We give no legal advice.

Can a family member rent my ADU?

Yes. A written lease still helps, even for family.

Sources

HyreADU is a publisher. It does not design, permit or build ADUs, has no partner builders, and gives no legal, tax, lending or engineering advice.

Rules vary by state and city; California rules are labeled as such. Spotted an error? Tell us through our corrections page. Licensed professionals can also contribute as named sources.