Do You Want to Make the Most of Your Home?

California Homeowners Can Legally Add a Rental Unit to Their Property!

Do You Want To Make The Most of Your Home?

Hey, we’re Framework First. We’re determined to make the most of each and every home. Will yours be next?

In California, just about everything is expensive, especially rental units. These days the easiest way to purchase a rental unit is to just add it on to your existing property. Accessory dwelling units (ADUs) are legal in California and homeowners have been exploiting this by renting them out. Most of the homeowners who are doing this typically dabble in real estate investing, as they see adding an ADU as just another source of income to an existing property. But now, there are more options than ever before – which allows the everyday homeowner to make the most of their home. Completely legal, completely possible for you!

What Types of Rental Units Can I Add to My Property?

There are many different options today for California homeowners looking to find the right ADU rental unit for them. Even if you have a limited space, there is sure to be an ADU for you. You can convert almost any existing space, that is large enough, into a JADU (junior accessory dwelling unit). JADUs include a bedroom/living area, small kitchen, and it can share the existing bathroom with the main residence. These can be perfect for a family member or relative that you’re okay with sharing a bathroom with. For a JADU, either the main house or the JADU must be owner-occupied, meaning you have to live in one of them. Still a great option and still an opportunity to bring in some rental income.

Want to keep your house to yourself? No problem. You likely have a garage that is filled with stuff you never use and maybe a washer and dryer. Why not convert that into a fully self sufficient living space for a new ‘neighbor’ that helps pay your rent every month. By adding on a side door (or maybe there is one already there) and a window or two, you can make a great living space. Remember, these are your least expensive options because they already have walls, some electrical and plumbing.  

  • Garage conversions = rental
  • Separate a bedroom and add an exterior door = rental
  • Add a detached ADU in your backyard = rental
  • Add on a bedroom, bath & kitchen to your home = rental
  • Convert a separate out building into living space = rental
  • Empty basement = rental

Now Is the Time for All California Homeowners to Get Their First Rental

Now is the time to transform your property into an asset that can produce income. Add on a rental unit to your property and let that passive income help pay for your mortgage. There has never been a better time to add a rental unit onto your existing property. Just think of all of that recurring income coming in month after month, even when you retire!

There are a couple of easy steps to finding a great tenant. Make sure you follow every step to increase your chances of finding the perfect tenant:

  1. Make your rental space is nice and clean, even if you’re on a budget. Make it so nice that you would want to live there. Nicer the space, nicer the tenant.
  2. Charge good rent. A lot of rent. No low ball rents, this is a nice space and you want a nice respectful tenant who appreciates it. But, make sure you can keep up with the number you post it for, be reasonable.
  3. Use a screening service to background check them. All of them. All of the adults who will be living there.  The only thing you can really screen is their credit. And don’t take cash. They need to go to your bank and deposit the money. 
  4. Remember the law is 1 bedroom = 3 people. Every bedroom is 2 people plus one more. Follow the law.
  5. Be respectful of your new tenant, but lay down the rules. And build a fence.  

(you know what they say about fences making the best neighbors)

It really is easy to find a great tenant, but you need to follow the rules. Following these basic rules will help everything run smoothly. Becoming a landlord does require some work, but the long term rewards of having rental income coming in every month can be a huge benefit to yourself and your family. After your initial investment in converting part of your property into an ADU, all rents can become long term passive income. ADUs are an amazing opportunity! 

In Conclusion

ADUs serve as an enormous asset that adds value to your existing property. The first step to building your ADU is a feasibility study, which will tell you everything you need to know about your property, regulations, and requirements. Next, would be to decide which type of ADU is the one right for you. And, how large can it be? 

If you are building an ADU strictly for the rental aspect or establishing it as your ideal workspace, it is best to build a detached ADU over an attached one – it tends to be the most comfortable option. 

Although, if the goal of building an ADU is to expand the space of your main house while creating additional living space for a close family member, you may want to consider an attached ADU.

Regardless, accessory dwelling units offer outstanding benefits for all homeowners, whether it is providing financial security, helping someone have an affordable living space, housing a loved one, or making it easier for everyone to have access to comfortable housing, they are a great investment. 

About Framework First

Framework First is a construction company that specialized in ADU, and has over 38 years of construction experience. With a drive to change homeowner's lives, only one question remains, will your home be next?

Table of Contents

Leave a Comment

Your email address will not be published. Required fields are marked *