ADU construction, also known as Accessory Dwelling Unit conversion, is rapidly gaining popularity in Los Angeles as homeowners seek to increase property value and generate passive income. When embarking on an ADU project, it’s crucial to select a reputable contractor based on their reviews and reputation to ensure a successful outcome.
According to a recent ADU Impact Report by Cottage, a San Francisco-based ADU builder, Southern California is currently the hottest ADU market in the country, with demand surpassing the actual number of builds. This highlights the growing interest and potential in ADU conversions in the region.
1. Increased Property Value
An ADU (also known as a granny flat, casita, or guest house) is an excellent way to add value to your property. It also makes home ownership more attainable for first-time buyers who might struggle to afford the high prices of LA real estate.
The income generated by your ADU can help pay off the mortgage, enabling you to eventually own your entire property outright. The increased property value will make your home a more desirable investment when it comes time to sell.
ADUs are increasingly popular among homeowners who want to age in place, as well. By building an ADU on their property, they can move into it when they need to downsize, and continue to rent out the main house to offset costs. This is one of the many reasons why ADUs are becoming so popular in California and across the nation.
2. Stream of Passive Income
If you build an ADU for rental purposes, you can generate a steady stream of passive income. This can help you pay off the cost of your new ADU and can also be used to cover living expenses or to save for retirement and other goals.
ADUs are also a great way to help combat the growing homelessness crisis. Since California is experiencing such high housing prices, it is important to provide as many people with a place to live as possible.
By converting your garage into an ADU and renting it out, you can help provide much-needed affordable housing in Los Angeles. This is why cities across the state are encouraging homeowners to build ADUs. With some recent changes to the law, it is even easier for Los Angeles homeowners to build ADUs and earn a steady stream of passive income. By doing so, you can contribute to a solution for the homeless problem while increasing the value of your property.
3. Increased Privacy
If you’re like most homeowners, you’ve heard of ADUs or “granny flats” before. You may have even seen your neighbors convert their garage into a backyard home or casita.
Recently, both Los Angeles and California have relaxed the rules and regulations that surround building these secondary dwellings on residential property. This has created a surge of interest among homeowners for adding an ADU to their home.
Whether you’re looking to increase your property value, generate an income stream, or simply provide your guests with a remarkable place to stay, an ADU is a great investment to consider. But before you dive into the construction process, it’s important to understand the laws and guidelines that apply to your area. To find out if your property is eligible, you can undergo an ADU feasibility study. This will help you determine what type and size of ADU you can build on your property. It will also allow you to learn about local zoning restrictions that might affect things like height and setback requirements.
With the current affordable housing crisis, it makes sense to look into adding more living space to your property. Converting a garage into an ADU is one way to do this. It can be a great option for providing privacy for friends and family without the need to build new structures. This type of ADU is also less expensive than building a brand-new house.
ADUs can be either internal or detached, or even a JADU (Junior ADU). Depending on your property and local laws, you may have the opportunity to build multiple ADUs on your property.
Prior to 2023, ADU laws were unclear, but they now clearly state that you can build an attached and/or detached ADU as well as a JADU on the same property. This is a major change and allows most LA homeowners to have the potential to add ADUs to their property. The only caveat is that any JADU built on a Coastal Overlay zone requires a Coastal Development Permit.