Do You Want to Make the Most of Your Home?

What are ADUs and How Do They Work in 2022?

Do You Want To Make The Most of Your Home?

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Accessory dwellings units (ADUs) are small houses which are constructed on a property that has an existing home on it. ADUs can either be attached to the primary residence or detached from the home. ADUs are an affordable way to provide additional housing without purchasing another separate home.

Are ADUs Legal in California?

California laws have changed and now everyone can construct an ADU on their property. These small homes have a few different names, so you may recognize them by a different name. ADUs provide additional, affordable, housing for those looking to create more livable space on their property. ADUs have been shown to be a popular choice for California residence as the cost of housing in California can be quite expensive. ADUs have many names:

Granny Units
Casitas
In-Law Quarters
Cottages
Rental Studios
Secondary Homes
Guest Houses

Okay, so that seems pretty easy to understand – homeowners can construct a second home on their existing property. The new laws give homeowners the option to modify or add onto their existing property; legally, that is. This is a game changer for all homeowners who need to house a family member or want another source of income to help pay for their mortgage with a rental unit. In the expensive state of California, where the possibility of becoming a landlord seemed out of reach for most people.

What Could I Use an ADU for?

Accessory dwelling units have many uses to homeowners, and now more regulations and laws in California are making ADUs even more powerful. Previously, many homeowners hid their ADU in a garage or elsewhere and rented it out to family and friends on the down-low. If you got caught with an illegal rental unit in California, you could be facing a large fine and at the very least, you would have to completely remove all traces of your kitchen, bathroom, and living space. The local Building Department would even require homeowners to completely remove or concrete over ester and sewer pipes. Now, legal ADUs give homeowners options to use their property as needed:

Living space for an aging parent
Adult children to have an affordable place to stay that feels their own
Rental income unit
Home office space
Homeowners who want to downsize and use their main home as a source of income
Non-owner occupied rental units

The possibilities are endless! Since 2019, California’s Governor Newsom signed the first law into effect, there have been additional changes and improvements to help homeowners.

“An ADU is an accessory dwelling unit with complete independent living facilities for one or more persons and has a few variations:

Detached: The unit is separated from the primary structure
Attached: The unit is attached to the primary structure
Converted Existing Space: Space (e.g. master bedroom, attached garage, storage area, or similiar use, or an accessory structure on the lot of the primary residence that is converted into an independent unit.
Junior Accessory Dwelling Unit (JADU): A specific type of conversion of existing space that is contained entirely within an existing or proposed single-family residence.”

Why would I want an ADU?

So, basically, yes you want an ADU, maybe even two! Even if you have a small lot or property, you can usually at least convert your garage into an ADU. After all, most people just store ‘stuff’ in their garage and not even a car these days. You could add a small kitchen and bathroom to your existing garage and possibly a bedroom or a studio style living space. This could have it’s own separate entrance door on the side of your property for someone to come and go completely separate from the main house. Add a window for light and a safe means to exit in case of an emergency or fire and you can have a great small home for you, your family or a tenant. You might be surprised at how much income you can get from a garage conversion ADU.

Need more options? You can also likely separate a section of your existing home into a JADU or junior accessory dwelling unit of no more than 500 square feet. This could be a bedroom that could have it’s own separate entrance and small kitchen. This unit could share a bathroom with the main house making it the most affordable option for possibly a family member while still maintaining a separate entrance. And of course, there is still the opportunity to use this as a small rental unit. Or keep this space for yourself and rent out the rest of the house. Either the JADU or the main house, one of these, needs to be owner occupied.

How Much Could You Rent your ADU for?

Rents vary greatly all over the State based upon location and how nice your garage studio apartment is finished. While you don’t want to overspend your budget, investing into the nicest finishes you can afford will help to rent your ADU for the highest rent and the quickest. Quartz countertops, stainless steel appliances and nicer than basic light fixtures will attract high quality tenants. Here are some example monthly rents found on Zillow:

San Diego $1,894
Los Angeles $1,788
Palm Springs $1,200
Fresno $ 750
Monterey $1,300
Morgan Hill $1,800
San Jose $1,552
Pleasanton $1,700
San Francisco $2,000
Redding $600

These rents are not the same for everyone and your best reference is to look at your local rentals as you know the neighborhoods in your city the best. Besides location and finishes, there are other variables which will make a big difference. Are you pet friendly, this is huge! Do you have private outdoor space, parking space, laundry, pool access or other special features? These can make a big difference. Keep in mind, the law requires over 30 day rental terms, no short term rentals. The goal of these new ADU laws is to help with California’s housing crisis, not to add ‘hotel rooms’.

How Do I get an ADU? Where Do I Start to Get An ADU?

So, where do you start? Are the rules the same for everyone in California? Unfortunately, there are slightly different rules and regulations for every City and County in California. There are a few local offices that you need to contact to confirm the regulations for your property.

Planning Department – Restrictions and lot coverage
Water Company – Well and water restrictions
Sewer Local – Municipality or environmental health
Fire – Zone or sprinkler systems
Building Department – Restrictions & plan requirements
Solar – Requirements
Cal Green – Building materials & recycling

This seems like a lot, right? We offer feasibility studies at FrameworkFirst.com, or there are other companies that provide this service also. Basically, we gather all of the information relevant to your property and explain it to you in an easy to understand format.

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.