California ADU Lease Agreement: What to Include in 2026

An accessory dwelling unit may be smaller than the primary home, but the rental relationship is not informal. The agreement should identify the exact unit, all tenants, the lease term, rent, security deposit, permitted occupants, included areas, utilities, maintenance responsibilities, and rules that apply to shared parts of the property.

California state ADU law primarily governs how ADUs are created and approved. The rental relationship is also affected by statewide landlord-tenant law and, depending on the address, local rent-control, just-cause, registration, and disclosure requirements.

Do not identify the rental only by the street address if the main house and ADU share one parcel. State whether the tenant rents the detached ADU, attached unit, converted garage, or junior ADU, and describe any exclusive patio, parking space, storage area, mailbox, walkway, or laundry access.

• · Use the unit designation shown in official records where one exists.
• · Separate exclusive-use areas from shared areas.
• · State whether parking, storage, and outdoor space are included or merely permitted.
• · List appliances and furnishings delivered with the unit.

ADU disputes often come from daily use of a shared property rather than rent. A useful lease explains trash locations, paths of travel, gates, parking, shared laundry, package delivery, outdoor areas, pets, guests, and quiet hours in language that both sides can actually follow.

Avoid rules based only on the landlord’s later judgment. For example, “no unreasonable noise, especially between 10:00 p.m. and 7:00 a.m.” is clearer than a promise that the tenant will never disturb anyone.

The lease should say which services have separate meters, which are shared, who receives each bill, how the tenant’s share is calculated, what records the tenant may inspect, and when reimbursement is due. A percentage, fixed monthly amount, submeter reading, or documented allocation can produce very different outcomes.

If the landlord bills a tenant for utility service through a shared meter, California Civil Code section 1940.9 may impose specific disclosure and billing requirements. The lease should match the actual metering arrangement rather than use generic “tenant pays utilities” language.

Confirm whether the property is exempt from or covered by the Tenant Protection Act, whether a local ordinance adds stronger protections, and whether the tenant must receive any city-specific notices. A statewide template is a foundation, not a substitute for checking the city and the property’s regulatory history.

• · Verify the legal unit description and occupancy approval.
• · Document shared and exclusive areas with a simple exhibit or move-in photos.
• · Confirm the utility-meter arrangement before choosing an allocation formula.
• · Check local rent, just-cause, registration, and notice rules.