What should I know before building an ADU on my property?
Before building an ADU on your property, consider local zoning laws and building codes, construction costs, requirements for maintaining safety standards, landlord and insurance responsibilities if you plan to rent it out.
1. Zoning laws: Make sure that the location and size of your property are appropriate for an ADU and that you are allowed to build one according to your local zoning laws. You should also understand zoning requirements, such as minimum lot size, maximum building size, and parking requirements.
2. Building codes: Make sure your proposed ADU complies with all applicable building codes, including requirements for fire safety, structural integrity, and energy efficiency.
3. Financing: Building an ADU can be a significant financial investment. You should consider construction costs, materials, permits, and professional fees and determine how you will finance the project. You can finance the construction of an ADU with a home equity loan or a mortgage or pay cash.
4. Maintenance: As the owner of the ADU, you will be responsible for maintaining the unit and ensuring that it meets any applicable safety and health standards. This may involve regular inspections, repairs, and upgrades.
5. Tenants: If you plan to rent out your ADU, you should know your legal responsibilities as a landlord and familiarize yourself with applicable fair housing laws. Consider purchasing rental property insurance to protect your investment.
6. Impact on property value: Building an ADU may affect the value of your property. In most cases, an ADU can increase the value of your house by providing additional living space and rental income. However, in some cases, it may decrease the value if it negatively affects your property's appearance or functionality.
TIP: Use our ADU construction cost calculator to estimate your ADU's price in California.
