The California housing market has seen exponential growth over the past few years, and the coming years are projected to continue to see a rise in the need for real estate. While many new construction homes are being built throughout the state, the demand for homes in highly populated areas often isn’t as easily achieved due to a lack of available space for development. Luckily, there is a solution, and thanks to recent laws, now more than ever, the chance to add an ADU, or accessory dwelling unit, to your home is easier than ever!
Historically, ADU units were only found on properties with single-family homes as the main structure, with strict laws limiting the unit’s size, location, etc. Thanks to a new law passed in January 2020, all cities in California can now add ADUs to multi-family homes.
How Would You Add an ADU to Multi-Family Properties?
Pending your city's regulations and applicable HOA rules, California allows multi-family properties to construct Accessory Dwelling Units. This can be done in an assortment of ways; a few of the most common include converting:
- Garage Spaces
- Storage Areas
- Unused Outdoor Space (such as a small backyard in a row home or townhome)
- Overflow Parking Areas
Rules & Guild Lines
A lot of planning is needed if you’re considering adding an ADU to your property, as well as a list of different rules and regulations that must be followed for the dwelling to meet inspection codes and classify it as an ADU. For example, common ADU regulations include:
- All bedrooms must have a window to the exterior
- 4’ setback from property lines
- 16’ height limitation (if constructing a new building)
- Only 25% of the building’s units can be accessory dwelling units
Why Adding an ADU Could Be a Good Investment
Naturally, there are costs associated with building an ADU. However, this could be an excellent investment for any homeowner or landlord. These units allow you to skyrocket your income potential, creating additional rental income from space that was otherwise unused. Areas in high demand due to ample public transportation, employment opportunities, city amenities, and entertainment are expected to see a rise in AD rentals and construction, adding extra real estate options to those hoping to call popular California cities home.
ADUs come in all shapes and sizes, from studios to multi-bedroom dwellings; our team of experts can help you determine the perfect place to add to your space. We would love to discuss your options and help you create your own ADU, whether for personal or rental purposes. Contact us today to discuss your options!
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