Month: March 2021

Here in Los Angeles, property owners are very eager to add an accessory dwelling unit (ADU), most commonly to residential spaces. This trend to install an ADU is partially attributable to the hot real estate market that is experiencing high values and very low inventory. Building an ADU allows the property owner to achieve a high return on investment compared to the cost of building and the cost to acquire a similar asset in today’s white hot real estate market. With more markets in Los Angeles selling over $700 per sqft, it makes adding an ADU a great investment. In some markets the finished product is adding between $700 per sqft to north of $1000 per sqft. In other words, adding an ADU for at a cost of $100,000 to $250,000 can bring additional value of $300,000 to $900,000! Call us today to get a free consultation on cost and added value to your property. Also ask us about how we can help manage your ADU rental, making this investment stress free and simple!

What is an Accessory Dwelling Unit?

An accessory dwelling unit is a separate living unit built on the same property as the main residence. It is a single unit designed to include a bathroom, bedroom, dining area, veranda, or other living areas.

ADU units are generally designed as an addition to a home or apartment building and are sometimes seen as a separate unit within the home. These units can be builts using existing garage structures, building an addition to the existing property or building a new structure.

What is an ADU used for?

Many people use these units for a variety of purposes including, but not limited to: rental property, guest quarters, housing for elderly family members, housing for adult children and working from home office.

If you live in a single-family home, it is possible to include an accessory dwelling unit as part of a remodeling plan. Executing on the construction of an ADU has many moving parts and it is critical to higher a company experienced in the design, approval process and construction. Additionally, we can help manage your new rental unit for you!

Examples of Accessory Dwelling Unit Designs for Your Home

There are numerous kinds of ADU you can choose from when upgrading your house or property. The most basic construction and designs are detached, attached, or second-floor conversions. 

Home Cottages

A home cottage is an outdoor living area that can be attached or detached from a house. Some of the more popular accessories for the backyard cottage include outdoor fireplaces and outdoor kitchens. Portable grills can also be added to the patio area for some extra cooking time. For an added touch of luxury, chairs or chaise lounges can be purchased to enjoy a beverage outside while appreciating the surroundings.

Garage Conversions

This is another one of the many ADU designs and conversions available today. A well done garage conversion gives you the feeling that the unit is brand new and a thoughtful continuation of the existing home.

Garage conversions can be made of two-layered floor plans to maximize the lot area: one is with a finished lower area that acts as the main living area with the kitchen, dining, comfort room, and a family room; and the other is adding a second floor for the bedrooms and bathrooms. 

What is The Purpose of an Accessory Dwelling Unit?

You can take advantage of various types of accessory dwelling units for multiple reasons, from adding additional living space for your growing family or creating an additional source of monthly income by renting out the ADU, and even as a workshop for new hobbyists and artists.

Do You Need an Architect For an ADU?

It is important to get the right architect if you are building a fully-functional ADU on your property. There are many advantages of having an architect’s services including ease of city approvals, aesthetics and cost-effectiveness. These factors are essential and cannot be ignored, so it is vital to have the best ADU design from the start.

Architectural drawings are necessary for the construction process when getting an ADU approved and built. Suppose you choose to go with a non-experienced designer who does not have accurate blueprints detailed enough to understand and apply the essential construction factors correctly. This will cost you time and money, delays in approvals, added construction cost and delays in construction timelines. Having a full service ADU Design & Builder on your team makes the process smooth and efficient.

Does Adding an ADU Increase The Value of Your Property?

Adding an accessory dwelling unit to your house can significantly increase your residential property’s overall value in the real estate market. Since many people rent their apartments and homes daily, those who own their house with an accessory dwelling unit will reap the full benefits of having these additional living spaces.

Conclusively, an extra living space and house functionality will increase the marketable value of the property for short-term rentals and vacations while at the same time increasing the resale value of the house.

Takeaway: Is an ADU a Good Investment?

In Los Angeles building an ADU as an investment is a no brainer. Given the high value of properties in Los Angeles it makes perfect sense to build an ADU that increased the value of the home immediately. For example, lets say you convert a 400 sqft garage in Los Feliz neighborhood of Los Angeles at a cost of $150,000. That 1 bedroom ADU can bring you $2500-3200 a month in rent. That’s a 20-25% return on your investment! 

ADU projects cost money upfront, but with the increase of property value and the monthly cash flow, the return of your investment is ultimately well worth the money and effort.

Do you have plans of adding an ADU to your property? Angelus Construction has innovative ADU designs and a customer-focused approach to delivering professional projects to valued clients. Visit us here and contact us for a free consultation on our premier services!

Any investor must know the crucial factors involved in constructing an ADU before pouring investment into the property. You need to learn about the types of property structures classified as an ADU, including the requirements for building the unit.

If you plan to build an ADU, but you’re not sure where to start, it may be a good idea to hire an ADU expert to give you reliable information on what are your available options and assist you in the best direction on how to proceed with the planning and construction.

Contact Angelus Construction for premium ADU construction and design programs!

Things to Know Before Investing in an ADU

Here are a few of the primary things you need to know before deciding to invest in building an ADU.

Los Angeles ADU Laws

Local communities throughout Los Angeles have recently implemented regulations for property investors considering building an ADU. 

In recognition of the general issues in real estate pertaining to ADU construction, the state encourages new and existing units to meet the demand for legalization. Therefore, the State of California later assumed particular laws that assist in removing some local obstacles and streamline the process of obtaining a permit to legalize ADU structures.

Some of the issues include processing fees, property size, community disputes, and more. The following are a few of the new fundamental rules that potential ADU investors need to be aware of.

• Senate Bill No. 13 | Accessory Dwelling Units

“This bill would, instead, authorize the creation of accessory dwelling units in areas zoned to allow single-family or multifamily dwelling residential use. The bill would also revise the requirements for an accessory dwelling unit by providing that the accessory dwelling unit may be attached to, or located within, an attached garage, storage area, or other structure and that it does not exceed a specified amount of total floor area.”

• Assembly Bill No. 670 | Common Interest Developments: Accessory Dwelling Units

“The Planning and Zoning Law authorizes a local agency to provide for the creation of accessory dwelling units in single-family and multifamily residential zones by ordinance and sets forth standards the ordinance is required to impose with respect to certain matters, including, among others, maximum unit size, parking, and height standards. Existing law authorizes a local agency to provide by ordinance for the creation of junior accessory dwelling units, as defined, in single-family residential zones and requires the ordinance to include, among other things, standards for the creation of a junior accessory dwelling unit, required deed restrictions, and occupancy requirements.”

• Assembly Bill No. 671 | Accessory Dwelling Units: Incentives

“The Planning and Zoning Law requires a city or county to adopt a general plan for land use development within its boundaries that includes, among other things, a housing element. Existing law provides for various incentives intended to facilitate and expedite the construction of affordable housing. Existing law authorizes a local agency to provide, by ordinance, for the creation of accessory dwelling units in single-family and multifamily residential zones and sets forth standards the ordinance is required to impose on accessory dwelling units.”

Local Zoning Codes

Every community has unique regulations on zoning codes to legalize ADUs at the local government level. It’s recommended to check the local zoning codes to better understand the entire process before progressing on your ADU project. We have experience working with the City of Los Angeles, City of Pasadena, City of Glendale, City of Burbank, Manhattan Beach, Hermosa, Culver City, County of Los Angeles, City of Santa Monica and many more local los angeles area cities.

Can I build an ADU on my property?

To build an accessory dwelling unit, you would have to get the permit to legalize the existing or new construction ADU. About three years ago, the rules for constructing ADUs in Los Angeles weren’t as strict as today. Unlike before, legally permitted ADUs are becoming more conventional for property owners converting old sheds and cottages or building units from scratch.

Several guidelines are laid out by the city of Los Angeles that regulate the construction of accessory dwelling units (ADUs) in residential properties. The restrictions generally vary, but up to 1,200 square feet of ADU structures are allowed for single-family residences and properties even larger.

You have to declare your yard’s exact measurements to know the allowable structure size during the planning. The contractors can include the full measurement information on the requirements you have to file and have approved before starting the construction. 

The local department inspects proposed structures to ensure they’re up to code and assist in the general public’s safety. Even if the department approves a design, it may still have to go through the city’s environmental review board due to environmental impact that can potentially be detrimental.

Pro-Tip: You should check with your local department to know the exact guidelines available in your area. 

How much does it cost to build an ADU in Los Angeles?

Depending on the ADU’s design and location relative to other structures, the actual costs can be a little high, but generally not all that much if you think of it as an investment. 

One factor that is usually associated with the cost of building an ADU in Los Angeles is the building permit requirements. Each proposed structure must meet specific guidelines regarding height, site use, setbacks, zoning, etc. 

Considering the regulations and required energy performance features for the ADU planning and construction projects, you can’t build a unit for less than $175,000, at least for this year. As much as they can be time-consuming projects, their extremely expensive rates can also be part of the challenge.

Another cost factor you might want to know before investing in an ADU is the property tax. The ADU is assessed independently, which adds up to the amount you’ll need to pay for the total property tax, which is also inclined to increase over time.  

In A Nutshell

Every ADU project in Los Angeles requires a building permit before construction can commence. The primary thing to consider is that an accessory dwelling unit requires following local safety code regulations. So, even if you plan to use an existing available structure as a base for your new dwelling unit, it is essential to ensure that the building plan works according to local rules and regulations. And if the building design is not up to code according to the current guidelines, you will less likely get the legalization permit.

Accessory Dwelling Units are a great way to increase your property’s value in Los Angeles. Trust only the best in ADU Design & Construction here in LA! Angelus Construction offers specialized designing, permitting, and building ADUs with reliable and experienced services. Give us a call here today for a free consultation!