ADU PART 3: Common ADU Questions Answered
Part 3 in my ADU series, we’re going to do rapid fire Q&A, quickly answering all of your ADU questions and more, coming up.
Hello everyone, my name is Cameron Stephens, the entertainment industry’s real estate agent and the owner of Stephens Real Estate, a real estate experience tailored to the creative client.
Ok let’s get straight to it, rapid fire Q&A, let’s go!
Q: What is an ADU?
A: ADU stands for Accessory Dwelling Unit. It is a second structure on a property that can be used as a separate home, including bedrooms, bathrooms, and a kitchen.
Q: Did the California state laws recently change with regard to ADUs?
A: Yes, California passed new ADU laws in 2018 and again in 2020. In 2020 they expanded ADUs to multifamily properties and added Junior ADUs that allow up to two additional units to be built on single family. They also expanded grandfather laws and retrofitting to make ADUs even easier to build throughout the state.
Q: Why are Los Angeles homeowners building ADUs?
A: There are many potential uses for an ADU including rental income, housing family, a dedicated office space, additional living quarters for a nanny or guests, as a fitness, music, or art studio, as well as for retirees to live in so they can rent their main home and downsize.
Q: Why are ADUs becoming so popular?
A: ADUs are currently an extremely popular project in Los Angeles due to their flexibility of uses. Also, it’s generally cheaper to build an ADU than to buy a home with more space (on a per square foot basis).
Q: What kind of ADUs are there?
A: There are generally three types of ADUs: A garage conversion into an ADU, a new detached ADU, a new attached ADU.
Q: What kind of property qualifies to build an ADU?
A: Any residentially zoned property – single-family or multifamily.
Q: Is there a minimum lot size necessary to build an ADU on your property?
A: No, there is no minimum lot size.
Q: Where on my property can I build an ADU?
A: The ADU must typically go in the backyard. It must be located at least 4 feet from the rear and side property lines (unless converting an existing garage). It can be fully detached or attached to the main house or to a garage.
Q: What size ADU can I build?
A: You can build up to 1,200 sf if detached. If attaching an ADU to your house, it can be the lesser of 1,200 sf or 50% the size of the main unit. It can be either one or two stories.
Q: Do I have to provide parking for an ADU?
A: One parking space is required for an ADU, except that no parking is required for an ADU that is:
a. Located within one-half mile walking distance of a public transit stop, or located within one block of a designated pickup and drop-off location of a car share vehicle; or located in an architecturally and historically significant district, or most importantly, part of the proposed or existing primary residence or an accessory structure.
Q: Can I rent an ADU to a tenant?
A: Yes, you can rent an ADU to a tenant. California rental laws apply.
Q: Can I sell an ADU without my house?
A: No, you can’t sell an ADU without selling your house.
Q: Must I live on the property?
A: No, you can rent both the main house and the ADU. The owner-occupancy requirement has been waived for ADUs until at least 2025. If you have a Junior ADU in addition to the main ADU and single family residence, you must live in one of the three residences if you plan on renting two of the three.
Q: Do ADUs require pedestrian access from the street?
A: Yes, a walking path access of 3’ wide is required from the front yard/sidewalk to the ADU. A driveway is acceptable.
Q: Can I build an ADU on a duplex, triplex, or other multifamily property?
A: Yes, but there are unique restrictions that pertain to multifamily properties.
Q: I have a unique property or situation, where can I get advice to determine if I qualify to build an ADU?
A: You should consult with an experienced ADU architect/designer or speak with the LA City Building Department (Zoning Section) located at LADBS.org
Q: What is a JADU?
A: JADU stands for Junior Accessory Dwelling Unit. A JADU is a dwelling unit that can be built within the ‘envelope’ of an existing home (ie. inside an attached garage or bedrooms). A JADU is limited to 500sf and comes with some other limitations.
Q: Can I build both an ADU and JADU on my property?
A: Yes, you can build both an ADU and JADU on any single-family property, however you should know there is still an owner-occupancy requirement for JADUs.
Q: Can my Homeowners Association stop me from building an ADU?
A: According to the most recent state laws, an HOA cannot prevent you from building an ADU.
Q: Can I still convert my garage into an ADU if it is located less than 4 feet away from my property line?
A: Yes, an existing garage location is “grandfathered-in” as long as it was legally permitted when it was originally built, and it can be converted into an ADU regardless of the setbacks.
Q: Where do I start if I want to consider building an ADU?
A: You’ll want to start researching the costs and viability by doing a little research like reading our other blogs and other resources online. Next, you’ll want to speak with both an architect and contractor experienced with ADUs to get guidance specific to your property. I’m also happy to hop on a consultation call to talk through some common questions and recommend contractors, builders, and other people that can help!
Q: How much does it cost to build an ADU?
A: That depends on whether it’s a garage conversion or a new-built ADU. A standard 2-car garage conversion will usually cost $70,000-$100,000 but can be less or more depending on your needs. A new build ADU will usually range $300-400 per square foot.
Q: How much does an architect charge for ADU plans?
A: Depending on the size and complexity, full ADU plans should cost between $4,000-$12,000 with an average of about $6,000.
Q: What kind of city fees do I have to pay to build an ADU?
A: According to the latest state laws, cities are not allowed to levy impact fees on an ADU under 750sf. You will just need to pay plan check and permit fees to the building department; which are often a few thousand dollars. Some independent cities, including Beverly Hills, Santa Monica, Culver City, Burbank, and Glendale, may have higher fees than LA city.
Q: Are there ways to save costs when building an ADU?
A: A garage conversion is the most affordable ADU. Otherwise you can save money by using prefab sets from Ikea for a lot of the kitchen cabinetry, and use cheaper tile and flooring to save money.
Q: Are there ways to finance the costs of an ADU?
A: Yes. The options include getting a home equity line of credit, cash-out refinance, a construction loan, or a renovation loan.
Q: What are some ‘not so obvious costs’ of building an ADU?
A: Don’t forget about the ‘soft costs’ that include designing and processing the plans with the building department as well as city plan check and permit fees. In terms of actual construction, often overlooked costs are fencing, landscaping, concrete patios, and utility trenching repairs. The sewer line is usually the biggest expense overall since it will need to be underground.
Q: How long does it take to build an ADU?
A: Construction of a garage conversion will take 2-3 months, while building a new ADU might take 4-6 months depending on size.
Q: How is an ADU built?
A: Several ways. Most often, it’s built like a traditional wood-frame home right on site. Also, there are modular (pre-fab) companies that build the entire ADU in a factory and assemble it (or crane it in) onsite. Finally, there are other unique solutions like ADUs constructed from recycled shipping containers.
Q: Is an ADU like a small house?
A: Yes, an ADU is essentially a smaller version of a home, so it’s not a minor project. It needs all the same utilities including water, sewer, electric and possibly gas, and all the same comfort and safety requirements.
Q: Can I legalize an unpermitted Accessory Dwelling Unit or garage conversion?
A: Yes, but you will need to bring the ADU up to code and pay for the construction that is required. For these types of ADU questions, a good contractor can look at your property and give a rough estimate of the costs involved.
Q: Can I connect ADU utilities to the existing home?
A: You can connect electrical service to your home, but the city will require you to connect your sewer line directly to your lateral in the front yard and your water line to your water main.
Q: Can I build an ADU above my existing garage?
A: Yes, however, it’s likely your existing garage wasn’t built to support a second floor, so it will require additional structural and/or foundational support to be constructed before adding the second story.
Q: Can I have separate utility meters for the ADU?
A: Yes, you can have separate meters for water and electric service but it will cost more to install. You can also investigate installing ”sub-meters” as a lower-cost alternative.
Q: What improvements do I have to make to my garage to convert it into an ADU?
A: That depends on the age and condition of your garage. A good contractor can give you specific guidance, but in general, you may have to add structural supports to your garage framing, and you may need to deepen portions of your garage foundation.
Q: Does building an ADU on a single-family property make my home subject to rent control?
A: Possibly. Because the ADU is brand new, it shouldn’t be subject to rent control, however, the main house, if it was built prior to 1978, could be subject to rent control if it’s rented out.
Q: If I have DWP power lines at the back of my property, where can I build an ADU?
A: A new accessory dwelling unit or garage conversion which is more than 10’ away from the edge of the powerlines is acceptable. An ADU within 10’ of the powerlines must file for a DWP encroachment permit. A garage that is currently under the powerlines may have more difficulty being legally converted to an ADU.
Q: Is building an ADU a good investment?
A: This depends on several factors, but it can be a good investment because you’ll get cash flow from renting it PLUS it adds to the value of your home when you go to sell.
Q: Can my ADU have a separate address and mailbox?
A: Yes, Los Angeles will issue you a separate address for your ADU.
Q: How large should I make my ADU?
A: That depends on how you plan to use it. You’ll probably have just one kitchen, one dining area, and one family room, so the decision really comes down to the number of bedrooms and bathrooms. As a rental unit, more bedrooms equate into higher rent.
Q: How do I ensure that the ADU & main home maintain their own privacy?
A: This is important to consider, especially if the ADU will be tenant-occupied. Building your fencing in a location that allows outdoor space for the ADU resident and also separation/privacy between the two homes would be a good idea.
Q: Are ADUs good for seniors and retirees?
A: Yes, and they are even sometimes called “Granny Flats”. Their small size is ideal for a retired single person or couple. People are building ADU’s in their yard specifically to house their aging parents.
Q: Does building an ADU turn my property into a duplex?
A: Not officially because the zoning of your property doesn’t change. But for all intents and purposes, you will have a duplex-like property with two units you can rent.
Q: Are ADUs good for first-time buyers in Los Angeles?
A: Yes, they can be advantageous for first-time buyers who might struggle to pay the high home prices in LA. By buying a home, building an ADU, and renting it out, first-time buyers can use this rental cash flow towards their mortgage, thereby reducing their monthly housing costs.
Q: What kind of appliances do I put in an ADU?
A: In the kitchen you need a fridge, range and likely a microwave. You should look for appliances that are smaller than the standard size used in a house. Ideally, you’d create a space for a washer and dryer, there are stackable units that fit well in an ADU. A dishwasher is nice if you have the room for it in the kitchen, but not required.
Q: How much can I rent my ADU for?
A: That depends on significantly on size and location, but studios in Los Angeles rent from $1,200 to $1,800, 1 bedrooms around $1,700 to $2,200, and 2 bedrooms as high as $3,500 dollars. An important thing to consider for an ADU is privacy; if the unit is detached and has its own sectioned yard space, it will rent for more.
Q: Will my property tax go up if I build an ADU?
A: Most likely, the tax assessor will increase the value of your property to include your new ADU but will not re-assess your existing home.
Ok there you have it! Thank you for watching, I hope you learned something about ADUs and I hope I answered all your questions, that was a lot of them! If you have more, reach out, I’m happy to help.
At Stephens Real Estate we specialize in working with creative professionals, entrepreneurs, and especially people in the entertainment industry because I spent 7 years of my life working in animation and visual effects. That is why I designed Stephens Real Estate to be tailored to the creative client.
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