Is an ADU Right for Your Property? Key Considerations

 

Can You Build an ADU on Your Property?

Wondering if you can build an ADU on your property? The answer is most likely yes, thanks to California’s updated regulations! Here’s a quick checklist to determine your eligibility:

  • Type of Property: Single-family properties can usually build up to one attached ADU, one detached ADU, and one JADU.
  • Zoning: Ensure your lot is zoned for residential use.
  • Lot Size: No minimum lot size requirements, per Assembly Bill 881.
  • Setbacks and Height: Generally, setbacks are reduced to 4 feet, and the height limit for detached ADUs is 16 feet.

Note: Always confirm with local authorities to ensure compliance with additional local rules.

An Accessory Dwelling Unit (ADU), also known as a granny flat, in-law unit, or JADU (Junior Accessory Dwelling Unit), is a secondary residential unit on a property with an existing home. Recent laws in California, such as AB 68 and SB 13, have made it simpler and more affordable for homeowners to add these versatile units.

My name is Michael Kootchick. I have over two decades of experience in real estate development, focusing particularly on multifamily housing. Here at OneStop ADU, we help homeowners steer the complexities of building ADUs, making the process as seamless as possible.

Quick checklist for building an ADU in California: Type of Property (Single-family or Multi-family), Zoning (Residential use), Lot Size (No minimum), Setbacks (4 feet), Height Limit (16 feet) - can i build an adu on my property infographic pillar-5-steps

Can I Build an ADU on My Property?

Jurisdiction and Ordinance

The first question often asked is, “Can I build an ADU on my property?” The answer largely depends on your location and local regulations.

Jurisdiction refers to the legal authority governing your property. This could be your city or county. Each jurisdiction has its own set of rules, known as ordinances, which can affect your ADU project. For instance, while state laws provide a framework, cities and counties can tweak these rules to better fit local needs.

Example: In Los Angeles, the local ordinance might allow more flexibility than state laws, making it easier to build larger ADUs. Always check your local jurisdiction’s website or contact city hall for the most accurate information.

Overlays are additional layers of regulations that might apply to specific areas, like historic districts or coastal zones. These can add more requirements to your ADU project.

Types of ADUs

When considering “Can I build an ADU on my property?” know the types of ADUs you can build. Each type has its own set of rules and benefits.

Detached ADU: A stand-alone unit separate from the main house, usually located in the backyard.

Attached ADU: These are physically connected to the main house. This could be a new construction or a converted part of the existing home, like a garage.

Garage Conversion: One of the most popular options. You can convert your existing garage into an ADU. For inspiration, check out 37 Garage Conversion Ideas.

Over-Garage ADU: This involves building an ADU above your existing garage. It’s a great option if you don’t want to lose your garage space.

JADU (Junior Accessory Dwelling Unit): A smaller type of ADU, up to 500 sq. ft., created within the existing home. JADUs have specific rules, like requiring the homeowner to live on the property.

Single-Family and Multi-Family Properties

Single-Family Properties: Good news! If you own a single-family home, you can generally build at least one ADU and one JADU on your property.

Multi-Family Properties: Owners of duplexes, triplexes, and other multi-family buildings can also build ADUs. The number of ADUs allowed will depend on the existing units and the type of ADU you plan to build.

Zoning Laws and State Exemptions

California has made it easier to build ADUs by relaxing several restrictions.

Zoning Laws: These determine where ADUs can be built. They can dictate the size, height, and location of your ADU. However, thanks to state exemptions, certain restrictive zoning laws like minimum lot size and floor-area-ratio (FAR) do not apply to ADUs up to 800 sq. ft.

Minimum Lot Size: There are no minimum lot size restrictions for building an ADU in California. This means even if you have a small lot, you can still build an ADU.

Understanding these basics can help you determine if adding an ADU is feasible for your property. For more detailed guidance, you can always reach out to OneStop ADU for a free consultation.

 

 

Benefits of Building an ADU

Financial Benefits

Rental Income: One of the biggest perks of building an ADU is the potential for rental income. Depending on your location, you could charge anywhere from $1,200 to $2,200 per month. This can help cover mortgage payments or other expenses.

Property Value Increase: Adding an ADU can significantly boost your property value. A rough estimate is that your property value will increase by 100 times the ADU’s monthly rental value. For example, if you rent out your ADU for $1,000/month, your property value might increase by approximately $100,000.

Home Equity: Building an ADU can also increase your home equity. This added equity can be beneficial if you decide to take out a home equity loan or line of credit in the future.

Cost-Effective Construction: Building an ADU is often more cost-effective than buying a new property. Utilizing existing spaces, like a garage or basement, can save on construction costs. Plus, prefabricated ADUs offer a faster turnaround and minimal on-site construction, making the process even more efficient.

Social and Practical Benefits

Housing for Family: ADUs are perfect for housing relatives. Whether it’s adult children returning home, retired parents, or other family members, an ADU provides a separate, comfortable living space. This can be especially useful for multigenerational families.

Aging in Place: ADUs offer a great solution for elderly parents who want to live independently while staying close to family. Often referred to as “granny flats,” these units provide the perfect balance of privacy and proximity.

Caregiver Accommodation: If you need a live-in caregiver, an ADU can provide a separate, comfortable living space for them. This ensures privacy for both the caregiver and your family.

Community Character: Adding an ADU can help retain your neighborhood’s character while increasing your property’s flexibility. By utilizing existing infrastructure, ADUs contribute to more sustainable and integrated communities.

Privacy: ADUs offer a private living space for both the homeowner and the tenant. This is especially beneficial if you plan to rent out the unit. Features like a separate entrance and its own living amenities ensure that both parties maintain their privacy.

Building an ADU can offer numerous financial and social benefits, making it a smart investment for many homeowners. Next, we’ll dive into the key regulations and requirements you need to know before starting your ADU project.

Key Regulations and Requirements

When considering can I build an ADU on my property, understanding the key regulations and requirements is crucial. Here’s what you need to know.

Permits and Approval Process

Permits are essential for building an ADU. They ensure your construction meets safety and zoning standards. The process can be complex but manageable if you know what to expect.

  1. Initial Consultation: Start by meeting with a contractor to discuss feasibility.
  2. Detailed Feasibility Study: This study outlines the maximum buildable size, required setbacks, and site constraints.
  3. Permit Application: Your contractor should handle this, including architectural, structural, and Title 24 reports.
  4. Approval and Inspections: Once permits are approved, regular inspections ensure compliance.

Fact: In some regions, permitting can take several weeks if not handled properly. Contractors familiar with local regulations can expedite this process.

Setbacks and Height Limits

Setbacks refer to the distance your ADU must be from property lines and other structures. In California, the minimum setback is usually 4 feet from the rear and side property lines. These rules help ensure safety and space between buildings.

Height Limits vary by jurisdiction but typically range from 16 to 25 feet. This ensures that your ADU fits well within the neighborhood’s architectural style and doesn’t block views or sunlight for neighbors.

Fire Safety is another critical aspect. Your ADU must comply with fire safety regulations, which may include installing sprinkler systems, especially if the unit is over a certain size.

Utility Easements must be considered. These are areas reserved for utilities like water, gas, and electricity. Building over these easements is generally not allowed, so plan your ADU layout accordingly.

Parking Requirements

Parking can be a significant consideration when building an ADU. The state of California has relaxed many parking requirements to encourage ADU construction, but local rules can still apply.

  • Public Transportation Proximity: If your property is within half a mile of public transportation, you may not need additional parking for your ADU.
  • Car-Share Vehicle: If there’s a car-share vehicle located within one block of your property, additional parking might not be required.
  • Historical Districts: Properties in historical districts might have different parking requirements, so check with your local planning department.
  • Garage Conversions: If you convert your garage into an ADU, you usually don’t need to replace the lost parking space.

Understanding these regulations and requirements will help you plan effectively and avoid costly mistakes. Next, we’ll discuss the costs and financing options available for building your ADU.

Costs and Financing Options

Construction Costs

Building an ADU in California can be a significant investment. The starting cost is about $150,000. However, in areas like the Bay Area, expect to start at around $180,000 due to higher labor costs.

Factors Affecting Costs:

  • Design and Size: Larger and more complex designs cost more.
  • Materials: Wood frame construction is cost-effective but prices for materials can fluctuate.
  • Permits: These usually cost less than 6% of your total budget.
  • Labor: This is where most of your money will go.

Typical Construction Budget Items:

  • Excavation and Foundation
  • Frame and Roof
  • Plumbing and Electrical
  • Insulation and Drywall
  • Flooring and Paint
  • Appliances and Fixtures

Pro Tip: Keep your ADU under 750 square feet to avoid Development and Impact (D&I) fees.

Financing and Grants

Securing the right financing is crucial for making your ADU project a reality. Here are some options:

CalHFA ADU Grant Program: This program offers up to $40,000 to cover predevelopment costs like permits and design fees.

Local Financing Programs: Many cities and counties offer their own financing options. For example, the City of San Jose provides pre-approved ADU plans and support.

Forgivable Loans: Some local programs offer forgivable loans, which don’t need to be repaid if certain conditions are met.

Pre-Approved Plans: Cities like Chico and Stockton offer pre-approved ADU plans, which can save you time and money during the design and permitting process.

Understanding these costs and financing options will help you plan your ADU project effectively. Next, we’ll answer some frequently asked questions about ADUs.

Frequently Asked Questions about ADUs

How Many ADUs Can I Have on My Property?

In California, the number of ADUs you can build on your property depends on whether you have a single-family or multi-family property.

Single-Family Properties:
– You can typically build one ADU and one JADU (Junior Accessory Dwelling Unit). The ADU can be detached or attached to your main house.
– For example, if you have a single-family home, you could add a detached ADU in your backyard and convert part of your garage into a JADU.

Multi-Family Properties:
– You can add multiple ADUs, but the exact number depends on the type of ADU and how many existing units are on your property.
– For instance, you could convert unused spaces like storage rooms or garages into ADUs. You can also add detached ADUs in available yard areas.

How Much Does an ADU Add to Property Value?

Building an ADU can significantly increase your property value. The exact amount varies based on several factors such as location, size, and rental potential.

Property Value Increase:
– A rough estimate suggests that your property value will increase by 100 times the ADU’s monthly rental value. For example, if you can rent your ADU for $1,500/month, your property value could increase by roughly $150,000.

Rental Value:
– ADUs are popular rental units due to their privacy and access to yard space. This makes them highly attractive to tenants, ensuring a steady rental income.

Return on Investment (ROI):
– The ROI from an ADU can be substantial, especially in high-demand areas. Besides rental income, the added living space can make your property more appealing to potential buyers.

Can I Rent My ADU in California?

Yes, you can rent your ADU in California, and many homeowners do so to generate extra income.

Long-Term Rental:
– You can rent your ADU to long-term tenants. This is common and usually involves lease agreements of six months or more.

Short-Term Rental:
– Depending on your jurisdiction, you might be able to rent your ADU for short-term stays (less than 30 days) on platforms like Airbnb. However, most cities have restrictions on short-term rentals, so it’s crucial to check local regulations.

Owner Occupancy Requirements:
– For standard ADUs, California has waived owner occupancy requirements indefinitely. This means you can rent both your main house and the ADU without living on the property.
– However, if you have a JADU, the owner must live in the main residence to rent out the JADU.

Renting your ADU can be a profitable venture. Just make sure to inform your designer if you plan on renting, so they can incorporate features like extra storage and privacy considerations.

Next, we’ll explore key regulations and requirements you need to know before building an ADU.

Conclusion

Building an ADU is a significant investment with many benefits, from increased property value to additional rental income. But navigating the complexities of design, permits, and construction can be daunting. That’s where OneStop ADU comes in.

Comprehensive Services

At OneStop ADU, we specialize in making the ADU process as smooth and efficient as possible. Our team of experts is well-versed in modern, minimalist architectural designs, but we also accommodate other styles like contemporary, craftsman, and traditional. This versatility allows us to tailor your ADU to meet your specific needs and preferences.

Design to Permit Processing

We manage every aspect of the ADU project, ensuring a seamless transition from concept to completion:

  1. Initial Consultation: We start with a detailed discussion to understand your vision and requirements.
  2. Feasibility Assessment: Our team evaluates your property to ensure it meets all zoning and building code requirements.
  3. Design Phase: We create a design that maximizes space, natural light, and energy efficiency.
  4. Permit Processing: We handle all the paperwork and interactions with local authorities, ensuring a seamless approval process.

Time and Cost Efficiency

We know that time is money. Our streamlined process minimizes delays and reduces costs, making your ADU project more affordable. By using pre-approved plans or modifying existing ones, we can save you both time and money.

Ready to Get Started?

Building an ADU is a big step, but with OneStop ADU, you can rest assured that your project is in capable hands. Our expertise and comprehensive services make us the ideal partner for your ADU journey.

Ready to make your ADU dream a reality? Contact us today for a free property analysis and estimate. Let’s build something great together!

 

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