ADU / granny flat / backyard cottage in Berkeley: rent controlled?
Hi, we're considering building a backyard cottage in Berkeley, and are seeking information regarding if and how rent control might impact this decision. Does anyone know for sure? We've heard all types of conflicting information, and can't get a response from the rent control board. Can anyone help? Have you recently built and rented an ADU, and did anyone set limits on the rent you could charge? Any recommendations for groups or organizations that can help new landlords? Appreciate your thoughts, recommendations, and information.
Jun 27, 2017
Parent Replies
When I looked into it in the last couple of years, ADUs in Berkeley are not rent controlled. There are a lot of requirements about who is allowed to build them and how they're built (off-street parking, set back from property lines, etc.), so definitely look into that. Also, the rent control board always seemed to respond pretty promptly to any questions we had. Have you tried calling them?
New construction is exempt from rent control but no eviction control. You can't give the tenant 30 or 60 days notice to move without good cause, but you can raise the rent so high that they decide to move. Here is a list of "Partially Exempt" rentals:
http://www.ci.berkeley.ca.us/Rent_Stabilization_Board/Home/Guide_to_Ren…
New construction must be COMPLETELY new, from the foundation to the roof. Do not convert a garage if you want to be able to raise the rent. In addition, you are free to charge whatever you want at the beginning of each tenancy. Rent control only applies to sitting tenants.
I suggest you join Berkeley Property Owners Association. You may also want to contact Michael St John for advice.
https://www.bpoa.org/
I am working with a client on the same issue. It is my understanding that you will need to register the ADU with the rent board but it will not be under rent control regulation. You are not supposed to use it as an AirB&B or short-term rental but can charge any rent you want.