Welcome to the world of accessory dwelling units (ADUs). You’re in for a treat. These small homes have proven to be a fruitful option for homeowners all over California and beyond and we can clearly see why. Also commonly referred to as in-law suites, ADUs offer a myriad of opportunities to get a leg up in property value, generate rental income, or create flexible living spaces for family members and friends.
And with any large project like this, you probably have questions. Well, we have answers. Maxable is the leading ADU educator, having helped thousands of homeowners get their projects to the finish lines with our blogs, Youtube channel, and comprehensive E-Course.
Let’s dive into some of the most frequently asked questions we get asked by our clients.
What is an ADU?
An ADU (accessory dwelling unit) is a small living unit built on the same property as a single-family residence. Homeowners typically build them in the backyard of the main residence, but they can also convert an existing garage, basement, attic, or other structure on the property.
ADUs must contain everything required for long-term housing (at least 30 days). This is includes:
- Full kitchen with countertops and appliances
- Full bathroom
- Bedroom or sufficient space for a sleeping area if building a studio
- Private entrance
- Utility connections including water, electric, and sewage
Think of an ADU as a regular home, just on a smaller scale, like an apartment.
Your ADU will also need to meet local building and safety codes for housing units. These codes will vary based on your jurisdiction, but our team of ADU experts have eyes on these regulations all throughout California. You can schedule a free consultation with our team to get answers about your specific property and jurisdiction.
Pro Tip: In California, you can also build ADUs on multi-family properties.
Do I need a permit to build an ADU?
Yes, you are required to obtain a permit before you can begin construction on your ADU project.
The primary permit you’ll need is a building permit. A building permit explicitly grants you permission to make major changes to your property. Your general contractor will ask for this before they break ground.
How do I get an ADU permit?
Step 1: Evaluate your property
Start by assessing your property’s space, layout, and zoning regulations. Determine where an ADU could fit best.
Step 2: Hire an ADU designer
Unless you have experience designing ADUs yourself, you don’t want to skip this step. An experienced local ADU designer will know exactly how to move you through the process. Click here to get matched to a vetted ADU designer in your area.
Step 3: Develop your permit set
After brainstorming with your designer to talk specifics, your designer will get to work drafting your ADU permit set that will be submitted to the city. This is a large 20+ page packet of documents typically printed on 24×36 paper. These permit sets are no joke!
The city wants to see exactly how your ADU will be placed, how it interacts with its surroundings, its impact on the neighborhood, etc. That’s why these permit sets are so detailed and extensive. Luckily, your designer is responsible for drafting all of it.
Step 4: Submit to the city
Once completed and with your sign off, your designer will submit the ADU permit set to your local planning department to go through the permitting process. This will usually take one to three months depending on your jurisdiction.
While you wait, this is a great time to begin vetting ADU general contractors.
Step 5: Get your building permit!
With your building permit in hand, you’re ready to start building your ADU.
Can I rent out my ADU?
Yes, you can legally rent out your ADU. However, the permitted rental duration may vary depending on your local regulations.
Long-term rentals, defined as terms longer than 30 days, are permitted in all jurisdictions throughout California. Most homeowners renting out their ADUs prefer one-year lease terms, as they offer stable income with minimal maintenance requirements.
Rental terms under 30 days are often referred to as vacation rentals and are commonly listed on platforms like Airbnb and Vrbo. However, some cities prohibit ADUs from being rented for less than 30 days.
What are the best types of ADUs?
The best types of ADUs are the ones that align with your needs, budget, style, and property constraints. Below are the most popular ADU types among our clients:
- Garage conversion ADU
- Garage conversion and expansion ADU
- Detached custom-built ADU
- Attached custom-built ADU
- Above garage ADUs
- Detached prefab ADU
We have real examples of all of these ADU types on our ADU tours page.
Garage conversion ADUs are excellent for homeowners that are looking for an affordable option and are tight on space on their property. Plus, you benefit from regulatory benefits. If your garage is found to be in poor condition, it may need to be demolished and rebuilt to complete your ADU project.
A detached custom-built ADU provides the greatest flexibility among all options, though it’s often one of the more expensive choices. However, if customization is a top priority, the additional cost may be well worth it.
And sometimes, it’s necessary.
Justin and Lauren knew they wanted an ADU in the backyard of their San Diego home, but the only available space was a small sliver of land behind their pool. With some design magic, they were able to transform this narrow area into a beautifully functional one bedroom ADU that maximized every inch.
An above-garage ADU preserves not just the garage, but the backyard space too. Most garages are not built to support a second-story, so the garage will need to be reinforced before construction on the ADU can begin. With that in mind, an above garage ADU is the most expensive option.
How long does it take to build an ADU?
An ADU will take about 10 to 18 months to complete from design to construction finish. This will also depend on the complexity of your project. Below is a general timeline of the ADU process:
Design: 1 to 3 months
Permitting: 1 to 3 months
Construction: 8 to 12 months
If you are looking for a faster turnaround, a prefab ADU can cut the construction process to as little as one month. Modern prefab ADUs offer a wide range of customization options, allowing you to tailor the space to your needs.
Will an ADU increase my property value?
Yes, an ADU will almost certainly increase your property value by up to 35%. An additional living space not only enhances the functionality of your property but also makes it more attractive to potential buyers.
When building a garage conversion ADU, some homeowners are worried that losing their garage may deter some buyers. But, studies show that many buyers prioritize additional living space over a traditional garage, especially in urban areas where parking may not be as critical. The added value of an ADU often outweighs the loss of a garage, making it an appealing feature for future buyers.
How can I finance my ADU project?
Building an ADU can be a significant investment, but there are several financing options available to help make your project more manageable.
1. HELOC (Home Equity Line of Credit)
A HELOC allows you to borrow against the equity in your home, providing a flexible line of credit to fund your ADU project. You can draw on this line as needed and only pay interest on the amount you use. This option is ideal if you want to access funds gradually as construction progresses.
2. Home Equity Loan
A home equity loan is a lump-sum loan that’s secured by your home’s equity. This option offers a fixed interest rate and predictable monthly payments, making it a stable choice for homeowners who prefer a set repayment schedule. It’s ideal for those who need a clear and immediate amount of funding for their ADU construction.
3. Construction Loan
A construction loan is a short-term loan specifically designed to fund the building phase of a project. This type of loan typically covers the cost of labor, materials, and permits. Once construction is complete, the loan can often be converted into a traditional mortgage or paid off with other financing options. Construction loans can be ideal for those planning a major ADU build, as they provide upfront funds for the entire construction process.
How do I start my ADU?
These answers should start you off on the right foot to kickstart your project, but when it comes to building your own ADU down to your needed specifications, a helping hand is always valuable. Maxable connects you with vetted designers and general contractors in your area, ensuring you have the right team to bring your vision to life. Connect with us today to get started on your ADU journey!
