ADU’s Demystified

What is an ADU anyway? I get this question on an almost daily basis. ADU stands for ‘accessory dwelling unit’ and is a secondary structure to a primary residence with a full kitchen and bathroom. They’re most often observed as detached garage conversions in Los Angeles and an ordinance passed on May 30th allowing homeowners to build a new ADU structure provided there is room for it on their property.

What constitutes as room?

Below are the minimum city requirements for building new ADU’s or converting existing structures on a property:

• 5 feet minimum setback from the rear and sides of the property.

• No less than 150 square feet and maximum allowable size of 1,200 sq. feet with minimum area requirements as follows:

• Living/bedroom area: 70 sq. ft.

• Bathroom (Must include toilet, lavatory and bathtub or shower): 30 sq.ft.

• Kitchen/closets/hallways (Kitchen area with sink, stove, and refrigerator): 50 sq. ft.

What are the benefits of an ADU?

First and foremost, ADU’s can be used as rentals and collect income. This helps the community by providing additional housing, helping ease the shortage. From an investment standpoint, they can be a great source of additional income for homeowners and present a significant value-add when it’s time to sell.

How much value are we talking?

By constructing an accessory dwelling unit you are adding additional square footage to the property. Average cost per square foot is around $300 and if you consider the average value of homes in your neighborhood worth per square foot, many exceeding 800.00/sq.ft., it’s easy to see an instant equity gain through the project.

Beyond that, you also now have the added benefit of a flexible space that can be rented or used for family.

Additional considerations to keep in mind:

• ADU’s have their own address for mail purposes, but cannot be sold separately from the primary or main single family residence.

• Any single-family residence that is zoned for residential can build an accessory dwelling unit.

• The accessory dwelling unit cannot be sold separately from the main home.

• Fire sprinklers are not required for an accessory dwelling unit unless they are required for the primary residence. (This saves homeowners around 7K!)

• California passed Senate Bill 1069 in an effort to increase the supply of housing to the state. For this reason, any accessory dwelling unit may be used for a long-term rental. Local government decides if short-term rentals allowed.

If you have any questions about ADU’s, are curious about or would like to learn more, contact me.