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Maine’s landmark housing legislation, LD 2003, was designed to expand housing opportunities across the state by making it easier to build and rent accessory dwelling units (ADUs).

Under this law, long-term rentals, like a monthly or yearly lease, are allowed for ADUs in most areas of Maine, and there is no state-level requirement that the property owner must live on-site. This means homeowners can rent out either the primary residence or the ADU.

However, under the new law, municipalities may establish their own rules, which can include minimum rental periods (like 30 days or one year), permitting or registration requirements, or limits on the number of short-term rentals in a neighborhood. These restrictions are especially common in coastal or tourism-heavy communities such as Kennebunkport or Boothbay.

Since every town may apply its own ADU rental policies, it’s essential to check with your local Planning Department or Code Enforcement Office to determine whether short-term rentals are allowed, if there’s a required minimum rental period or if owner-occupancy is mandated.

You will want to have these four basic items checked off your list before you move forward any more steps toward signing a new tenant.

• Confirm the new street address for your ADU. You’ll need this street address to establish utility services and to set up your lease.
• Set up utilities.
• Get the right insurance policies in place.
• Develop a bookkeeping plan to manage your finances.

There are many benefits to sharing your property with a tenant, but renting also comes with many responsibilities.

You will want to understand the laws related to being a landlord, especially around discrimination. You’ll also want to have a good sense of the laws governing rental agreements and think about the issues that might arise from welcoming a new neighbor into your space.

A written lease is recommended, and fair housing laws must be followed.

Complete preparation might mean consulting with a real estate lawyer to make sure your plans and paperwork are in full compliance with the Maine Landlord-Tenant Act.

Some homeowners may be motivated to rent their ADU affordably to community or family members because they serve essential roles and might have difficulty finding housing that meets their needs. You will still want to create rental agreements in these cases.

However, if you financed your construction with a loan, consider the loan length, interest rate, any reserve funds you have and municipal ordinances around raising rental rates before settling on a rate that makes sense.

To help determine how much rent to charge, you can use online calculators such as those offered by Zillow and Rentometer.

Make sure your lease (or rental agreement if it is month-to-month) clearly identifies all the expectations for you and your future tenant.

You will need a rental application to give to prospective tenants and a lease or rental agreement if it is month-to-month. Samples are available online, including a Model Lease Agreement from the Maine Human Rights Commission.

Once you select a tenant, another way to protect yourself is to collect a security deposit and first month’s rent when you sign the lease. Conducting a move-in inspection with your tenant is also a good idea.

If you don’t have a specific occupant ready to move in, research how to successfully advertise your ADU and select a good tenant. Along with word of mouth or posting your rental online, you can also contact nearby schools, faith communities or other similar locations to see if any teachers, staff or community members are looking for housing.

Other methods for advertising rentals include neighborhood-based email listservs, social media groups or chatting apps like WhatsApp. If you post a “for rent” sign on your property, make sure to look up local rules about real estate signs, which may limit the size, quantity and other characteristics of your signage.

Screening tenants is key to protecting yourself, even if they are known to you. Following up with multiple references is a common practice, and if you’re casting a wide net, running background checks might be advised.

Maine law requires landlords to maintain a habitable unit. Plan for regular upkeep and repairs. Think through a long-term plan for the care and upkeep of your ADU, how shared responsibilities might be split and how to address any issues that might occur with your tenant.