Orange  County General Contractor Specializing in ADUs, Decks, & Patios

 

Building an ADU is a great way to add value to your property and drive passive rental income, but there’s a lot to consider. Here’s a quick rundown of the key things to keep in mind:

Legal Considerations

Know the rules: Every city has its own ADU laws. You’ll want to have a clear understanding of the ADU regulations in your local jurisdiction so that you’ll have clarity around what you can and cannot do.

Plans & Permits: You’ll need a permit in order to build legally. That means you’ll need a draftsman to create a full set of construction drawing and a licensed engineer will need to “stamp” your plans.

Money Matters

Cost it out: ADUs can be expensive. Make sure that you know the “all-in” costs upfront. Figure out how much you can spend and understand your ROI. Calculate your potential return on investment and make sure that building an ADU will be worth it.

Financing: How will you pay for it? Savings, loans, or something else?

Your Property

Space Planning: Is there enough room for an ADU? Will it work with your property’s layout? A “setback” refers to the minimum distance your ADU must be positioned from your property line, primary dwelling, and any easements that may exist within your lot lines. California ADU law calls for 4 feet of space between an ADU and the edge of your property lines. However, in most cases it’s a good idea to have a bit more space (we normally recommend 5-6′ when possible) in order to make the space around the ADU more usable, but also to potentially save significantly by avoiding additional “fire rated construction” requirements.

Conclusion

Building an Accessory Dwelling Unit (ADU) can yield one of the highest returns on investment of all home improvement projects, but it’s critical that you plan carefully. With the proper guidance, even a new homeowner or novice real estate investor can successfully incorporate an ADU into their property with relative ease. Do your research, plan ahead meticulously, understand the local regulations, and and choose a builder that you trust.