Should You Build An ADU On Your Los Angeles Property?

ADUs have become quite popular in Los Angeles and California in recent years. If you own a residential property in LA and live in it, chances are high that you have thought about building an ADU at some point. Maybe your friends or neighbors have done the same? This article is here to help you get closer to deciding if an ADU Los Angeles is a good decision for you. Read on.

What is an ADU?

ADU stands for Accessory Dwelling Unit. An ADU is a secondary housing unit on your property. It could be joined to your primary housing unit or it could be detached and located separate from the primary unit. An ADU, unlike storage sheds or garages, is a livable unit. These units also go by different names such as granny flats, guest houses, etc. It is almost important to note that ADUs can be commercial units that other people pay to live in or they could be non-commercial units where friends, guests or family members are housed either permanently or temporarily.

Is it worth it to build an ADU?

ADUs in Los Angeles are definitely worth it. Due to ever-increasing housing prices and a ballooning population, ADUs have become a highly sought-after commodity and with good financial returns to their owners.

However, despite the financial attractiveness, your decision to build an ADU should primarily be guided by the need you are looking to fill. That is, what do you want to do with your ADU? There are several possible reasons that guide most to build ADUs in LA. They include:

To earn rent and create extra income.

To move into the ADU and rent the main unit and earn even more rental income.

To expand their living space and accommodate more family members.

To rent out to children or in-laws at prices lower that prevailing market rates and thereby create a win-win situation for all.

How much does an ADU cost in Los Angeles?

If you are thinking about building an ADU in Los Angeles, it is wise to talk to various contractors and look at multiple quotes first. On average, an ADU can cost anywhere from 100K to 200K with the average being around 150K. Financing options include cash, leveraging your mortgage, leveraging your home equity, and leveraging your expected rental income. At Kofler Design Build, we do construct ADUs and would love to discuss designs and costs with you.

What qualities make a good ADU?

o Modern design

o Fully furnished and move-in ready

o Fully equipped with kitchen and bath. Does an ADU need a kitchen? Yes they do!

o Some allocated outdoor private space, e.g. backyard or verandah

o Privacy between the main unit and the ADU.

Challenges you may encounter with ADUs

• Finding good ADU contractors.

• Obtaining planning permissions.

• Getting past community by-laws.

• Maintaining privacy between yourself and the ADU occupants.

At Kofler, we offer design and build Los Angeles ADU services. Let us help you find the answers you are looking for such as; is an ADU right for you, where should you situate your ADU? How much income can you get from your ADU, and more. Call us today and schedule a free consult.