Everything You Need to Know About Residential ADUs (Accessory Dwelling Units)
An ADU is an affordable solution to help solve the housing issues in Los Angeles. Many people refer to an ADU as a granny flat or a mother-in-law unit or a back house. No matter what they are called, they provide separate and complete living space on your property. There is no set size or shape requirement for an ADU, and they serve a variety of purposes, including passive income or housing for relatives.
Put simply, yes, ADUs are legal to build in Los Angeles. It used to be that trying to get permits and building approval for ADUs in Los Angeles was difficult at best; Los Angeles ADU contractors had to cut through a lot of red tapes to get permits and approval for adding ADUs to the backyards of any single-family residence. In 2016 a series of laws was passed in the California Legislature that got rid of all the red tape. The state legislature then passed Assembly Bill 68 in 2019 that got rid of even more restrictions.
For 360 Builders to construct an ADU on your property, a few basic requirements need to be met. Your backyard needs to be big enough to house a building with a footprint of 20 feet by 24 feet with a 7-foot clearance from your primary residence. This gets tricky if you have a detached garage and limited space, but the garage can be removed, and the ADU built in its place. If you have space, the garage can stay.
Our Los Angeles ADU contractors are able to offer you a variety of designs so you can find just what you are looking for. We offer a variety of sizes and designs for you to choose from, but we can also do garage conversions and custom designs.
The overall cost to build an ADU on your property depends on the size and design of your ADU. Our ADU contractors will outline all of the costs associated with building your ADU for you in a clear and concise estimate. Before we begin the construction process, our team will go over all of your financing options so you can find a solution that works best for you.
How much you can make renting your ADU depends on a variety of factors, including the going rate for rent in your area and how you financed your unit. To maximize how much money you can make, it is beneficial to refinance your home and include the ADU in the refinance. Managing the property yourself also cuts back on expenses, so you keep more of the rent collected.
Always consult with a tax professional for accurate information on tax deductions. Most rental owners, though, can deduct a portion of the utilities, property taxes, mortgage insurance, mortgage interest, and depreciation.
In most cases, adding an ADU to your property will increase your property taxes. Most homeowners discover, though, that the increase is not that much. Once an ADU is built in Los Angeles, the city comes in and does a blended assessment. This type of assessment takes the cost of the addition and adds it to your ORIGINAL property value, not the current property value. For most homeowners, this means an increase of a couple of hundred dollars a year.
In some cases, your homeowner’s insurance will go up a small amount to cover the liability of having another person living on your property. Always notify your insurance company that you have a renter living in your ADU to ensure all losses are covered.
One of the great things about building an ADU on your property and generating income from it is that it increases your property value, which in turn increases the home’s market value. Many homes with ADUs sell faster than those that don’t.
As a separate living space, your ADU will come with everything your tenant could need, including their own parking space. All of our ADUs come with a full bathroom, refrigerator, cooktop, air conditioning, heating, laundry room, and more.
Once construction begins, you can expect the project to be completed in about six weeks. Construction may take longer depending on the design you have chosen and if there are unavoidable delays.