In Los Angeles, the talk of the town among investors is Assisted dwelling units also know as ADU’s. One of the properties my wife and I own is a duplex, and adding an ADU not only would bring in some extra income every month, but it would also add value to the property as well. So, I called around-contractors, and city-planners and finally got some answers of whether or not a duplex could have an ADU built.
Can you add an ADU to a Duplex? Yes, you can add an Adu to a duplex however, the rules regarding the build are very strict in comparison to a single-family home. The city will be restricting the additions of ADU’s based on your properties specific zoning ordinances.
The Adu laws were once again revised in 2020, so this gives us hope that we still may be able to build an ADU on our property. Learning about ADU’s is an interesting process because it’s new to me, continue reading to learn about what ADU’s are, and how you might be able to build one.
Adding An ADU To A Duplex
As the home prices began to rise and rent constantly increases, it’s no surprise that the ADU laws were once again revised. Allowing multi-family homeowners to build ADU’s on their properties. Since the city will be restricting the construction of multi-family residences, it makes it more challenging to build on a multi-family lot. For instance, every zone has a total amount of units allowed on the property based on certain metrics.
The measurements they use to determine if an ADU can be built on your property is the maximum number of units and by the lot and floor area ratio. So, if your lot is maxed out with the total number of units existing on the property, then you may be prohibited from building an ADU.
However, the fact that the ADU laws have been revised gives those who own multi-family homes the option to expand, which is awesome news!
How does this affect me?
Last year I spent my wheels calling contractors and city planners trying to determine if I was allowed to convert the garage on our property. I soon realized prior to 2020 that ADU’s were not allowed to be built on multi-family properties. This news was relevant until the new revision so, I’m going to go back to city planning and determine if they’re allowed in this zoning ordinance.
What Is An ADU
On my commute to work, and run errands, I’m always admiring real-estate; from the architectural design of the homes down to the neighborhood layout. What I’ve always noticed more than once was the conversion of garages, and additional rooms creating additional living space.
In 2016 California passed several legislative bills that were aimed at increasing housing for Californians. Three of the laws assist and encourage homeowners to build ADU’s, in which they feel will help California with the housing crisis. These bills help everyone including the homeowner and the renter. By allowing home-owners of single-family and multifamily residences to build assisted dwelling units.
ADU’s have a wide range of designs but can either have an additional building constructed or convert an existing garage attached to your home. They can be rented out and used as a source of additional income. However, any designs over 750 sq will increase value to your home, affecting your property tax payment structure.
Those illegal conversions can now be converted to legal construction through the new ADU laws in place.
Why Are They Becoming So Popular
ADU’s have always been around, however there gaining popularity from the Home TV shows, Investors, and home-owners. Investors see it as a way to increase there selling price to potential buyers and home-owners see it as a way to bring in some extra income.
All in all, it’s a win-win for everyone as a whole, California has noticed a growing housing problem and this is there way to fix it. Nearly a quarter of all home-improvement permits last year were related to ADU construction. So, the building of ADU’s is beginning to pick up steam.
A large majority of home-owners are using ADU’s to increase there income. But there’s a variety of other reasons why home-owners are building them as well.
I’m sure you can get creative and come up with other ideas of what you would use your ADU for; here’s a list of what I’ve seen home-owners turn them into.
- Personal home gyms
- Yoga rooms
- Recreational rooms
- Additional living space for there family
- Man Caves
Since the legislation of ADU construction laws now we’re allowed to rent out an ADU. Also, if you reside in a rent-controlled area then the ADU does not fall under the standard rent control ordinances, which is a great benefit.
When renting out an ADU the additional the rent payments will have to be filed as income. For example, if you charging $1000 a month for rent; then your yearly income will increase by $12,000 annually. Lastly, the property must be owner-occupied in order to rent it out.
Building More Than One ADU
Another great benefit of ADU’s is that you can build more than one. There’s a maximum of two allowed on a single property. The individual units have specific size requirements; an ADU cannot exceed 1200 sq and the junior accessory dwelling unit (JADU) can not exceed 500 sq.
The size of the property and the zoning for your city all play a role in how many ADUs you’re allowed to build.
Can An Adu Have A Second Address
A second address is not required on an ADU, but if one is desired you’re allowed to add a 1/2 to your current address. It’s different than a duplex which may have a completely different address. The address addition needs to be filed with the mapping and Property Management Division.
Related Questions
What is the legal definition of a duplex?
A duplex is a property that consists of two individual residences knows as units. These individual units have a different address and may have separated utilities for the ease of billing payments.
The units can vary in design, ranging from up and down, to side by side, and detached. If you’re interested in learning more about the design, you can review a post I made about the layout here. Residential multi-family goes up to four units, and anything over four units is considered a commercial property.
You can think of a duplex as two individual houses situated on one lot, it’s a great alternative to buying a single-family home. Because the additional unit generates extra income, assisting you with your mortgage payments.
Summary
As a property owner, whether if it’s a home, multi-family residence, or an apartment, it’s a great benefit to have options. Options of building an ADU to increase your income, or maybe you’re a yoga instructor and you decide to hold personal sessions.
Whatever the case may be, because the laws have become lax towards the building of ADUs, it presents us with a great opportunity to grow our property value in more ways than one.
If you own a home, duplex, or you’re thinking about purchasing a home always have a long-term plan of what potential the property has for growth.