Depends mostly on what your city and state laws are when it comes to un registered or non compliant housing units. If that space has a kitchen and bath of its own On the lighter side of it inspections can order you to evict the tenant, as well as order you to remove a second kitchen, If your city or county has any ords that spell out fines to owners thats a consequence , in some places tenants are able to go after specific financial penalties in civil court against LLs who rent illegal units. If this person leaves with out incident when the time comes a better choice is for a owner to live in the non compliant space ( doesnt mean local govt wont raise a stink , or to simply share all common areas and treat it as roomate set up where roomate may have own living room and bedroom and bath but can use your kitchen) your local library should have a copy of your city /county zoning rules and ordinances as well as your states Landlord tenant laws so you can learn more about the consequences of being a landlord.