Author Topic: realtor terminology - owning while renting a portion  (Read 485 times)

nereo

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realtor terminology - owning while renting a portion
« on: December 18, 2018, 09:17:50 AM »
Someone help me with this simple question (google searches have been unfruitful).

We're considering purchasing a home to live in with a separate efficiency that we would rent out while using the main house as our primary residence.  One agent we spoke to immediately said "oh that's a _____, good idea." 

What's the term (realtor lingo) when you buy a home with the intent to both live in and rent out (simultaneously).  I want to do some research on potential rules/regulations (including how it might affect lending) before meeting with potential agents.

thnx
~n~

geekette

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Re: realtor terminology - owning while renting a portion
« Reply #1 on: December 18, 2018, 09:20:49 AM »
Probably Accessory dwelling unit (or ADU).

Around here (US South), I've heard them called "granny flats", too.
« Last Edit: December 18, 2018, 09:22:38 AM by geekette »

cchrissyy

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Re: realtor terminology - owning while renting a portion
« Reply #2 on: December 18, 2018, 09:56:43 AM »
in my city, the term is "a golden duplex"


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Q:  I am interested in buying a house that has an in-law unit on the property. My realtor says it's a "golden duplex" and therefore not subject to rent control. What exactly is a golden duplex and why would it not be under rent control?

First, for Rent Board purposes, a duplex is any two-unit property. Some duplexes are exempt from rent control, or "golden," while others are not. A duplex is exempt from rent control if an owner lived in one of the units as his or her principal residence on December 31, 1979 and an owner currently occupies one of the units as his or her principal residence (it need not be the same owner). "Owner" in this context means an owner of record with at least a 50 percent interest in the property.
The rationale for this exemption from rent control is the belief that an owner who shares a small property with a tenant will have a more familial relationship with his tenant and, therefore, there is less need for external rules to protect the tenant from unwarranted rent increases.

tralfamadorian

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Re: realtor terminology - owning while renting a portion
« Reply #3 on: December 18, 2018, 10:41:57 AM »
ADU
granny flat
mother-in-law suite

nereo

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Re: realtor terminology - owning while renting a portion
« Reply #4 on: December 18, 2018, 10:43:38 AM »
Thanks for the input thus far, but...  the term used was neither ADU nor "golden duplex".  I thought it started with a V, but it went by so quickly I didn't catch it.  Seemed in reference to the kind of mortgage arrangement one could get - basically showing the bank that the property could generate some rental income.  The property isn't a true duplex, but a single-family home with a small basement apartment with its own entrance (an efficiency).

Thanks for the input thus far.