Introduction to ADUs

Why not build a separate property in your own backyard? With an abundance of laws and regulations, it can be intimidating and complicated to get started on construction projects. Learn everything you need to know about ADU construction in Los Angeles right here!

ADUs are steadily gaining attention from homeowners because of their versatility. Whether you’re looking for a specific place to house guests or in-laws, host your house parties, or want a separate dwelling unit that can be rented out, an ADU can fulfill your needs.

What Is an ADU?

An ADU or Accessory Dwelling Unit is a secondary housing unit on a single-family lot. It’s generally smaller than the main house and is often detached from the central unit.

This unit is also known by many as granny flats or a mother-in-law house. Historically, owners built these structures to provide dwellings to extended family members or newly-wed partners without compromising the privacy of individuals.

In short, ADUs are secondary housing units or apartments that share the same lot as an existing home. They are essentially independent living spaces with all the necessities of a home.

Watch this video to learn more about ADUs.

What Can You Do With an Accessory Dwelling Unit?

Nowadays, homeowners build these structures for various reasons. Here's what most Los Angeles homeowners do with their ADUs:

A rental property: ADUs can be a great source of rental income. Some homeowners generate significant returns by converting their ADUs into rental spaces.
A guest house: Of course, you can always use ADUs to serve their traditional purposes, to house guests or extended family members traveling from afar.
A pool house: An ADU can be the perfect pool house where you can change, shower, and relax after a swim. This is also an ideal place to host your pool parties without going inside your main house.
A dedicated workspace: In the age of technology, many people now work from home. If you want to separate your work from your personal life, an ADU can be the perfect place to set up your home office.
A recreational space: A gym, an art studio, a music room, or even a home cinema – your ADU can be anything you want. You can even turn your ADU into a commercial space to start your small business. The sky's the limit.

What Qualifies as an ADU in Los Angeles?

In Los Angeles, homeowners of single-detached houses can build an ADU of up to 1,200 square feet in size. ADUs are commonly built detached from the main house but can also be attached through a garage or an enclosed breezeway.

So long as the structure has its own entrance, a kitchen, and at least one bathroom, it can be considered an ADU in Los Angeles.

How Much Does It Cost To Build an ADU?

The cost to build an ADU varies widely, and it all boils down to the size and complexity of the project. First, you must find someone to design your ADU, find a trusted contractor to build it, and then finally submit that information for approval from the Department of Water and Power and the Department of Building and Safety. On average, homeowners spend around $150,000 to build an ADU in their backyard.

However, it’s essential to note that the median cost of building an ADU is $86,500, which suggests that many residents were able to keep their costs down.

Conditions and Permitting

As long as there is an existing home on the land, an ADU can be built in most residentially zoned lots but does require a budding permit (as it is after all, a new building). In Los Angeles, permitting costs can vary wildly - anything between between $1,800 and $8,000 depending on location and complexity.

Different Types of ADUs

There are generally two major categories of ADUs: attached and detached.

As the categories suggest, an ADU can either be as an attached addition to the existing home structure or as a separate, stand-alone building.

A detached ADU can resemble a small backyard cottage or studio flat. It is also sometimes referred to as a granny flat, laneway house, or casita.

Meanwhile, a common example of an attached ADU has converted garages and bump-out ADUs. Additional structures on top of existing garages also count as attached ADUs.

Interior ADUs may be considered as a type of attached ADU, as it is technically attached to the primary home. The difference is that interior ADUs are built inside actual home structures. The best example of an interior ADU has converted basement apartments.

Benefits of ADUs

Perhaps the two best advantages of ADU construction in Los Angeles are the additional living space it offers and the lower cost of construction.

These two benefits serve as the foundation of all other benefits of accessory dwelling units.

Other major benefits include:

1. Earn Passive Income

ADUs can become a stable source of extra, passive income. As ADUs in Los Angeles are generally required to have their own entrance, living room, kitchen, dining area, bathroom, and bedroom, it can easily be rented as a separate living residence.

2. Higher Property Value

Aside from earning passive income, ADUs have become a popular home addition to help raise the value of the property. Data shows that adding an ADU to your property can increase a home’s resale value by 35%.

3. Host Family and Friends

ADUs are a perfect solution for homeowners who love hosting friends and family but do not have enough space inside the house. The units you allow to accommodate visitors while also providing them their own space.

4. House Senior Family Members

In some places, ADUs have earned the nickname mother-in-law suites and granny flats. They serve as an ideal solution to help senior family members retain a level of independence as they age.

5. Adult Children & College Graduates

A study from TD Ameritrade found that 50% of Americans under 30 plan to move back in with their parents upon graduating college. ADUs can be an affordable way for parents to have their house for themselves while still helping fresh graduates and young adults with rising housing costs.

Los Angeles ADU Rules & Regulations

In October of 2019, Governor Gavin Newsom signed Assembly Bill 68 (AB68) into effect. This bill outlines the necessary requirements needed in order to make construction and development of ADU’s in Los Angeles.

Over the past five years, the state government has passed laws that made it increasingly easier to build ADUs. This has led to the widespread popularity of ADU construction in Los Angeles, which has now become the leading city in ADU percentage across the U.S.

As per California law, for a structure to be considered an ADU, it should have “permanent provisions for living, sleeping, eating, cooking, and sanitation.”

The following are other rules and requirements for ADU construction in Los Angeles:

A minimum of at least four feet of setback on your property
The ADU must be less than 16 feet tall. If you are building the ADU within an existing structure, you are allowed to build it as tall as that existing structure.
An attached ADU connected to an existing home can only be 50% of the size of the main unit.
A detached ADU can be up to 1200 square feet, regardless of the size of the main unit.
The living room/bedroom must be at least 70 square feet.
The kitchen must be at least 50 square feet.
The bathroom must be at least 30 square feet and must contain a toilet, sink, and a shower stall or bathtub.
Single piece composite, laminates, interlocked metal sheathing, or wooden shingles for the exterior and roofing are prohibited.
Windows must have double-pane glass that is labeled for building use, and they must not have an exterior trim.
Can be built on properties with single-family or multifamily residential homes
No parking spot requirement for units built within half a mile from public transportation.
It is important to note that certain counties in California do not permit the use of ADUs as short-term rentals. However, long-term occupancy is permitted.

Ready for ADU Construction Los Angeles?

Building an ADU in your backyard is a great way to revamp your place. Not only will you have a secondary dwelling unit that you can use for various purposes, but you will also be increasing the resale value of your home.

If you’re planning to build an ADU in Los Angeles, it’s crucial to know the legal ordinances that come with the project. Make sure to consult with a professional to avoid any complications down the road.

Getting started with an ADU project

If you’re looking to build an ADU on your property, working with an experienced team of structural engineers, architects and contractors is critical to the success of your project. At Sterling-Watson Collective, we are well positioned to help with a professional team with backgrounds in design, architecture, and construction, and considerable ADU experience.

To get started, simply get in touch with us and book an initial free consultation.

If your property has the space, it would benefit you to look into the cost of constructing an ADU on your property. Most residential conditions in Los Angeles County can support some type of ADU on the property.
Developing plans for ADUs typically takes about 6-12 months. The construction can be as quick as a few months depending on the construction team you work with, the number of stories, existing conditions and other factors. Some construction can take over a year.
ADU permit cost can vary depending on the extent of construction, number of stories, surrounding conditions, and other factors. Generally, an ADU permit cost will range between $2,000 to $8,000.
Building an ADU can help offset the cost of the mortgage and is one of the best ways to create passive income. Contact your nearest contractor to get an idea of construction cost and timeline.

ADU Construction Los Angeles