ADU PART 1: Introduction to ADUs and Garage Conversions

ADU is term you’ve heard thrown around by now, but what does it mean, how can you build one, why you would build one, and what changes have new laws in Los Angeles brought? All that 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.

Today I want to talk about ADUs, accessory dwelling units, that have become extremely popular in Los Angeles for good reason.

The first is this: The state of California has a shortage of housing supply and really really really really wants you to help them by adding to it. So much so that they have continued year over year to expand the laws to make them easier to build new ones, easier to retrofit old ones that were done without permits, and even allowed you to build more of them as of new laws passed in 2020. 

Then the pandemic hit, and would you love to have a bonus office, gym, studio, in-law suite, or just some rental income? Yeah, a lot of people said yes to that, and ADUs have absolutely exploded. 

The two primary options are either building a new ADU unit in the backyard or converting an existing garage to an ADU. A garage conversion is the most cost-effective option because the basic structure already exists. You’ve got wood framing, roof, a foundation, electricity, you’re already part way there. The downside is the limitation in size – most 2-car garages are only 300-400 square feet.

This is still enough space for a ‘studio’ or small one-bedroom unit, with both a kitchen and a bathroom. Alternatively, you could build an addition to your garage and convert the entire space to an ADU, which is a cost-effective way to create a larger ADU with 600-800sf and 2 bedrooms.

A new ADU, however, can take many forms. It can be attached to an existing home, attached to a garage in the rear of the lot, or detached completely. It is typically one story but absolutely can go to two stories if the square footage requirements are there.

It must be in the backyard or side yard area and not in front of the existing home, so you can’t just stick one right in your front yard. A new detached accessory unit is limited to 1,200 sf, while an addition attached to an existing home is limited to the lesser of either 1,200 sf or 50% of the size of the existing home.

A 400-600sf ADU is ideal for a one-bedroom floor plan and a 600-1,200 sf structure is enough to be one or two stories, with up to three bedrooms and multiple baths! Yep, I’ve seen those, you can do them two stories high with a rooftop deck. They can be as cool as your budget allows!

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The city of Los Angeles ADU ordinance has allowed ADUs on most residentially zoned lots regardless of their size as long as the structure meets the basic restrictions and there is an existing home already on the property, meaning most LA homeowners have an opportunity to add an ADU on their property. 

Los Angeles ADU’s are also allowed on multifamily properties such as duplex, triplex, four-plex, and apartment buildings. These properties generally have different guidelines for the construction of ADUs, but they also have the potential to build several ADU’s on a single property, which is a massive change as of 2020.

A new accessory dwelling unit must be at least 10’ away from the existing house and garage or it must be attached to either. Also, a new unit must be at least 4’ from both the rear and side property lines. A garage conversion into a living space, however, does NOT need to meet these setback requirements, which means yes, garage conversions are super easy to get done.

One of the cool new things as of 2020 as well is the ability to do a Junior ADU as well, so you can have up to three units on a property that is zoned for single family. Yes, that means investors or people looking to utilize portions of their property to rent can effectively turn a single family home into a triplex.

The Junior ADU is limited to 500sf, but that’s plenty of space for a studio or 1-bedroom unit. A junior ADU does come with occupancy restrictions, as you must live in one of the units on a property with a junior ADU. That means on a home with a single family house, an ADU and a Junior ADU, the owner can only rent out two of the three units. 

The JADU guidelines state that this unit must be within the existing ‘envelope’ of the main home. What does that mean? Well, if you have an attached garage, it is considered within the envelope of the existing home, so you could convert that into a JADU at a maximum 500sf. Or if you have an extra bedroom you’re not using, you could ‘wall it off’ to separate it from the rest of the house and add a small kitchenette to create a JADU. You’d have to add its own separate entracte, but very doable on say a home with 3 to 4 bedrooms on separate wings. Little bit more limited, but definitely options there. 

But wait, there’s so much more to talk about when it comes to ADUs. In the next video of this series I’ll talk about how much ADUs cost, how to finance them, how long they take to construct, and more.

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.  

I also designed a few value adding programs for both buyers and sellers that no one else is offering. For buyers, we put together a full marketing plan that paints you as the right buyer for your dream home. We can help recommend local lenders that will fit your financing situation, even if you’re freelance. And don’t worry about the inspections, we’ve got you covered. They’re free, all of them, no questions asked.

And If you’re looking to sell your home, we offer the ability to REMODEL NOW, and PAY WHEN YOU SELL with Zero fees, no interest, no upfront costs. Plus, we pay for all of the aspects of digital marketing from photography, drone footage, videography, 3D walkthrough and virtual open houses, social media campaign, custom website, targeted emails and more.

So, if you like my energy and personality, and think my expertise and the programs I offer would benefit you, please don’t hesitate to reach out. Additionally if you know someone that would benefit from connecting with me, I’d absolutely love an introduction.

Thanks again for watching, and at the end of this video there will be a QR code you can scan to be taken directly to my website, or a link somewhere down there where you can click to learn more.