What is an ADU? An accessory Dwelling Unit is a tiny residence that shares the same property as or is attached to a single-family home and is known as an auxiliary dwelling unit (ADU). For instance, it may be a separate home in the backyard, a basement apartment, or an apartment over the garage. An ADU may be rented out to generate extra revenue or accommodate a family member, for instance: Your mother-in-law or a visiting cousin, among other examples. It is not only a real outstanding state investing tool but also a needed infill housing option.
Now that you know what an ADU is let’s examine in more depth a few areas where people tend to stumble so that we can become experts on the local zoning law.
1. Verify if your property can accommodate an ADU:
We all make sure that our ADU designs fit within our budgets, but it’s also crucial to make sure that your land is appropriate for the ADU. You need to be aware of the zoning, regulations, and setback requirements for ADUs. You can easily understand everything when you work with ADU builders who are the best in their game.
2. Make sure the team you choose is experienced:
It’s amazing how frequently people begin a construction project only to discover later that the company they’re working with is either unlicensed or underfunded. Using an unlicensed company is never a smart move. It’s unprofessional and a big red flag for potential issues. Even if an unlicensed contractor can do quality work, they are usually fly-by-nighters seeking fast money. Unfortunately, since construction projects are paid in large lump sums, there is little recourse if you hire an unlicensed contractor and they never show up to the job site. Finding them again is challenging, and it’s unlikely that you’ll ever get your money back.
3. Choose whether to create an ADU or purchase an already-built one:
We advise you to buy a house with the ability to add an ADU. Costs for an ADU might range from $80k to $200k. However, the payout is incredible and may pay for itself in 5–10 years, depending on your rentals, if you take into account the rents you would receive. Want to purchase an existing ADU? Do it; it will help you have the financial flexibility to invest a bit extra in a property and provide you with the cushion of additional rent to pay your mortgage. There are benefits to both strategies.
4. Consider the advantages of constructing an ADU:
One of the best financial moves a homeowner can make is to build an ADU. The ADU is significantly less expensive than a care facility if constructed for a loved one with special needs. As an alternative, several clients have been able to use the additional money from renting their ADU to pay for their ADU or backyard house and their mortgage.
5. Be mindful when designing:
ADUs offer privacy and independence while keeping your loved ones nearby, making them a fantastic option for an in-law suite for elderly parents. Make sure your design considers aging gracefully by including curbless showers and more significant entrances for ease of mobility.
6. Keeping utility connections in mind:
Just like the occupants of your primary house, the renters of your ADU will need access to power and water. You won’t often need to install any new utilities. Instead, you can hire a contractor to connect to the gas and water lines that run through your primary residence.
7. Keeping state policies in mind:
Local authorities are constrained in their capacity to demand design review for ADU projects as opposed to any other project type since these projects are based on California state legislation. Months of design review hearings and related expenses can be avoided if the project is no taller than the main home that already exists and is typically comparable in style and construction to that structure.
8. Conduct research and pose key queries to yourself:
Always do a cost-benefit analysis before beginning. Think about things like how much money was spent overall to develop the ADU compared to the projected monthly rent. Am I making a profit? Is the loss of parking and privacy worth the cash flow? How long will it take for my money to be returned? Could I earn more money by putting my money into a different project? All of these are crucial inquiries to make before deciding to construct an ADU.
9. Make sure your builder provides a warranty:
Most builders provide a warranty that lasts up to 90 days, starting on the first day of construction. However, a 90-day guarantee is not something you should be looking up to, considering that it is something you will have to live with and use for, on average, ten years. Therefore, it is recommended to hunt for superior service providers who do excellent work rather than choosing a shorter time of security.
10. Pros and Cons of ADUs:
Before deciding to build an ADU, make sure you weigh all the benefits and drawbacks. This will help you determine whether the investment is worthwhile for you.
So now that you have a general understanding of how to choose the most excellent ADU builder for yourself, one who can provide you with a safe, secure, and high-quality building. Do your research and choose the finest people to conduct the best work and construction on your ADU. Before deciding to build an ADU, make sure you weigh all the benefits and drawbacks.