Bulding an ADU — Passive income for Homeowners
In January of 2017, a new California state law took effect that encourages homeowners to build “granny flats.”
The legislation did several important things to encourage ADU construction. It involved two reforms–easier permitting and reduced parking requirements.
These housing units go by many names (backyard homes, secondary units, garage apartments, and the one we use here: accessory dwelling units or ADUs). They have been established by permit.
- ADU’s can be properties as small as these living units.
But many homeowners do not know that the City of Los Angeles has made it easier than ever to add a legal rental unit to a single-family home.Most homeowners can imagine many ways to use a rental unit on their property — for an elderly relative, extra income, a caregiver, or a grown child living at home.
ADUs generally include living, sleeping, kitchen and bathroom facilities and have a lockable entrance door.
A detached ADU is the same concept, but the living area is in a separate structure, normally in a backyard cottage of some sort.
ADUs are different than a legal duplex.
A legal duplex is a home with two dwelling units in a multi-family zone, will not have restriction on rentals.
An ADU often requires the property owner to live in one of the dwelling units.
Types of ADUs:
1) Detached new construction ADUs
2) Garage conversion ADUs
3) ADUs above a garage or workshop
4) Addition ADUs
5) Basement conversion ADUs
6) Internal ADUs
There are 1970 applications for ADU permits in Los Angeles as of Nov. 2017.
Each city has their own ADU policy, so for more information or a guidebook to ADU, contact your city’s Departments of Planning and Building and Safety!