One Property, Two Rents: Analyzing A Home With An ADU

A main home and an ADU can have different rents, conditions, and costs. Let's give each dwelling its own assumptions, then bring the property budget together. This fictional example has an existing main home renting for twenty-four hundred dollars and an accessory dwelling renting for sixteen hundred. Those rents still need verification.

Together, those rents add up to four thousand dollars a month before vacancy or any costs. It is scheduled income, not profit. In ProformaPilot, set up the dwelling schedule under Main Home And ADUs. Enter each dwelling's rent separately. Do not put those same rents into Other Income, or the analysis would count them twice.

For each dwelling, record whether it is existing, planned, or under construction. Review the permit and rental-approval status, and decide whether its rent should be included. Including planned dwelling rent creates a stabilized scenario after completion and lease-up. It does not mean that income is available today, or that the project has been approved.

Add the extra dwelling's project budget and owner-paid expenses where they belong. Keep property-wide taxes, insurance, and financing in the shared budget. For this illustration, shared and dwelling-specific fixed costs total eight hundred dollars a month. We also use five percent vacancy, eight percent management, five percent maintenance, and five percent capital reserves.

The scheduled rent of four thousand dollars becomes thirty-eight hundred dollars after vacancy. Operating costs total one thousand two hundred ninety-four dollars, including management, maintenance, and the eight hundred dollars in fixed costs. Capital reserves use another one hundred ninety dollars. After the twenty-two-hundred-dollar property loan payment, one hundred sixteen dollars remains. More rental income does not remove the need to examine the full budget.

Check the whole property against records, the listing, and what you know. A data provider may not separately identify the ADU or its rent. Confirm local rental eligibility and realistic income with appropriate professionals. Ask your lender how the accessory income is treated. The application's verification status records your review; it does not independently approve a dwelling.

Review the dwelling summary and whole-property results in ProformaPilot. Try excluding accessory rent while retaining the costs that still apply, then compare saved versions. Start with the free example at ProformaPilot dot com slash demo. Separate the rents, count each cost once, and keep the distinction between today's income and future plans clear.