What is it like to live on the same lot as your tenant?
Close, and it works when the rules are written down. In a duplex you share a wall with the person who pays you rent. With an ADU you share a yard and a driveway. A problem in their home reaches you the same day, so a leak or a broken lock gets caught early.
WHAT MOST PEOPLE ARE NEVER TOLD
The owner is the landlord, and the landlord lives a few steps away. Nobody stands between you and your tenant, so every soft yes at the door becomes a permanent rule. Put the rules in writing before anyone moves in.
Decide these before move-in, write them down, and apply them the same way every time:
- How rent is paid, and what happens when it is late.
- How a repair gets reported, and how fast you will answer.
- Noise, parking, the yard, and whatever else you share.
Expect what any shared wall brings, with money attached: late rent, noise complaints, awkward hallway encounters. You give up some privacy, and you are easy to reach at any hour, about anything. You can pay a manager to stand between you. Add that monthly fee to your cost before you buy.
If the home comes with a tenant, their lease usually stays in force after the sale. Ask for it and read it before you offer. Have an attorney confirm what carries over, and check your own rules against your state's landlord-tenant law.
GOOD TO KNOW
Before you buy, ask yourself whether a shared wall and a late knock about a repair suit you. The loan asks you to live there at least a year, so settle that first.
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WHERE THIS COMES FROM
- The House Hacking Bible, chapter 13: You Live Where You Work Now (Series Homes)
- Fannie Mae Selling Guide B2-1.1-01, Occupancy Types
- Fannie Mae Selling Guide B2-1.5-03, Legal Requirements (Rental Property Leases)
- Fannie Mae Selling Guide B3-3.8-02, Rental Income from the Subject Property
Researched and written by Series Homes. Checked against its sources on . Lending rules change. This page is general information, not a loan offer or legal or tax advice.