Rental Survey of a Single Family Home with an ADU

[William Tsai]

I am doing an appraisal of a single family home with an ADU on a 1004 form. The client has also requested a rental survey (i.e. 1007) along with the 1004. The subject's main house and the ADU are occupied by different tenants. The subject property is generating two separate rental incomes. So, the subject essentially has two units although it is a legal single family home. How do you do a rental survey on a 1007 for two units? Would you do two separate rental surveys - one for each unit? ACI software does not allow you to attach a second 1007 form to the same report. Or would doing this assignment on a 1025 form be more appropriate? I would appreciate your input on this.

 

[Michigan CG]

Write an addenda for the two separate units explaining the rent for each one and then combine them on the 1007.

 

[Lee Lansford]

I am doing an appraisal of a single family home with an ADU on a 1004 form. The client has also requested a rental survey (i.e. 1007) along with the 1004. The subject's main house and the ADU are occupied by different tenants. The subject property is generating two separate rental incomes. So, the subject essentially has two units although it is a legal single family home. How do you do a rental survey on a 1007 for two units? Would you do two separate rental surveys - one for each unit? ACI software does not allow you to attach a second 1007 form to the same report. Or would doing this assignment on a 1025 form be more appropriate? I would appreciate your input on this.

RE "1004 or 1025": Isn't that the question to be answered via H&BU analysis? Yes.

 

[Renee Healion]

Some jurisdictions allow an ADU only if one unit is owner-occupied. Another wrinkle!

 

[CANative]

RE "1004 or 1025": Isn't that the question to be answered via H&BU analysis? Yes.

Deleted

 

[sputnam]

Yep. Income from Unit 1 + Income from Unit 2 = Income for the property. To be truly comparable, you would have to report rental comparables that were also SFR with ADU. Make sure that you provide enough commentary... in prominent places... so that no one would read your report and think the property was a SFR.

 

[Gregory Beck]

It all depends on the zoning for the area too.

 

[J Grant]

does the client want the rental survey only for the ADU unit ?

Ask client.

IF they only need rental survey for the ADU, it is not germane whether or not the main dwelling is rented ( though I would disclose that it is in the appraisal)