Can You Build an ADU on Your Rental Property in California with SB9?

Accessory Dwelling Units (ADUs) have become an increasingly popular way for California homeowners to maximize their property’s potential. With the passing of Senate Bill 9 (SB9), property owners have more flexibility than ever to develop additional housing on their lots. If you’re wondering whether you can build an ADU on your current rental property under SB9, Bayfront ADU is here to break it down for you.

Understanding SB9 and Its Impact on Rental Properties

SB9, also known as the California Housing Opportunity and More Efficiency (HOME) Act, was signed into law in 2021 to address the state’s housing crisis. The bill allows homeowners in qualifying single-family zones to split their lots and develop up to two primary residential units. While SB9 primarily focuses on lot splits and duplex conversions, it works in tandem with existing ADU laws to create more housing opportunities.

Can You Build an ADU on a Rental Property Under SB9?

While SB9 does not specifically alter ADU regulations, it opens up possibilities for rental property owners. Here’s how:

• Lot Splitting and Additional Units – If your rental property qualifies for an SB9 lot split, you may be able to add a second primary residence, which could be rented out separately.
• Existing ADU Laws Still Apply – Even without an SB9 lot split, you can still build an ADU or Junior ADU (JADU) on your rental property under California’s ADU laws.
• Rental Restrictions Under SB9 – Properties developed under SB9 must be used for long-term housing, meaning new units cannot be rented out for short-term stays (less than 30 days).

Key Requirements for Building an ADU on a Rental Property

If you’re considering adding an ADU to your rental property, here are a few key factors to keep in mind:

• Zoning and Lot Eligibility – Your property must be in an urban area and zoned for single-family or multifamily residential use.
• Owner-Occupancy Rules – SB9 requires owner-occupancy for lot splits, but ADU laws do not impose such a requirement unless it’s a JADU.
• Parking Requirements – If your property is near public transit, parking requirements may be waived.
• Local Ordinances – While state law allows ADUs, local jurisdictions may impose additional design and size restrictions.

How Bayfront ADU Can Help

Navigating the complexities of SB9 and ADU regulations can be challenging. At Bayfront ADU, we specialize in helping property owners maximize their real estate potential. Whether you’re looking to add an ADU, explore an SB9 lot split, or ensure compliance with local laws, our team can guide you through every step of the process.

Get Started Today

If you’re ready to unlock the full potential of your rental property with an ADU, contact Bayfront ADU today. Our experts can help you design, permit, and build the perfect unit to increase your rental income and property value.

Schedule a consultation with us today!