An in-law unit can be a major selling point when you're buying a house. It's the perfect guesthouse for short-term visits (your adult children coming for Christmas) or long-term stays (Grandma moving in with you). But what can you do with your in-law unit while it's sitting empty? Some homeowners opt to rent it out.
Nothing sounds sweeter than extra monthly cash flow, but is it really that simple? Let's dive into the pros and cons of renting out your in-law unit and what you can expect to deal with as a property manager.
What is an in-law unit?
To qualify as an in-law unit, this part of the house should have its own entrance, bathroom, and kitchen or kitchenette, says Stephanie Trevizo, a real estate agent and landlord in Los Angeles.
If your home listing says it comes with an in-law unit, you should make sure it legally qualifies as one in your municipality.
"This can usually be done by calling your local housing authority or city ...