Looking to Maximize Income from your San Diego Rental Property - Build an ADU!
An Accessory Dwelling Unit, or an ADU, is defined as a separate dwelling that is either attached to or detached from a main home. You might know them as granny flats, in-law suites, casitas, guest houses, backyard homes, or companion units.
No matter what you name them, ADUs are an effective, innovative, and affordable way to add much-needed housing in California. Backyard homes are also eco-friendly and conserve land usage by being added to property already used for residential or multi-family housing. Adding an ADU is cheaper than buying an additional home or rental property since you already own the land and have access to existing utility hookups. They can be used for short-term rentals (30 days or more) or they can be rented out to a long-term tenant.
At Onyx Property Management, we happen to specialize in helping property owners leverage space to build and rent out ADUs. We work with our sister company, OneStop ADU, to ensure that all the state and county restrictions, regulations and structural requirements are met.
Benefits of an ADU to San Diego Real Estate Investors
The San Diego housing market is in a crunch. Inventory is low and there’s a high demand for well-maintained housing. As prices increase, there’s a need for affordable housing and homeowners are looking for ways to leverage their own property and space. With an ADU, you can add a rental unit to your existing property and contribute to housing solutions and gain some extra income potential.
Why is building an ADU a great investment?
- You already own the land on which the ADU will be built.
- Even if you don’t reside in the main home, you can rent out your ADU.
- The equity in your main home allows you to access the capital you may need for construction.
- You can use your granny flat as a home for aging parents or adult children.
Long-term vacation rentals are also allowed. You cannot rent your backyard home for fewer than 30 days in San Diego, but you may attract visitors who are in town for a few months.
ADU Regulations and Restrictions in San Diego
ADUs can be built on property in San Diego that is zoned for either single-family or multi-family residences. Always check with the city before building on the land, or work with a company that can help you navigate the requirements and walk you through the process. You’ll also must obtain a permit and the property must be free of code violations.
If the property you currently own does not have any existing space such as a two-car garage that can be easily turned into an extra living space, consider constructing a separate structure. Want to learn more? Watch the video below!
Work with OneStop ADU
When you decide you want to add an ADU to your home, our sister company OneStop ADU, can help turn your San Diego backyard dream home into a reality. We take care of design, permit processing, inspections, construction, project management and property management. In addition, OneStop ADU has teamed up with some of the top lenders in San Diego that will match you with the best loan programs currently available.
By partnering with this qualified team, you can expect a turnkey solution that helps you take advantage of the ADU opportunity. We offer:
- 6 pre-designed floor plans
- 3 style options and customized finishes
- Permit processing and project management
- Lender matching program
- Property management once your ADU is ready to rent
OneStop ADU clients will also enjoy these bonus inclusions:
- ADU feasibility study provided at no charge at initial in-person consultation
- Construction drawings are included for our 6 pre-designed plans with signed contract
- Permit processing (does not include city fees) included with signed contract
- Solar is included with construction for our 6 pre-designed plans (San Diego Zone 7 requirements)
A consultation and feasibility study costs you nothing.
We’d be happy to tell you more about how the application and approval process works. When we meet, we can give you our thoughts on whether your property is an ideal fit for an ADU.