California ADUs
What’s an ADU ? 
ADUs are known by many names, including accessory dwelling units, granny flats, in-law units, guest house, second units, and casitas. No matter what you prefer to call them, ADUs are separate, complete homes for at least one person that are located on the same property as another, primary home. That means that ADUs have a place to live and sleep, a kitchen, and in most cases, their own bathroom.
Different types of ADUs
ADUs can take a few different forms.
Detached ADUs are located in free-standing buildings that are separate from the main single-family home or multi-family building.
Attached ADUs involve adding on to a single-family home.
Conversion ADUs are constructed by converting part of an existing single-family or multi-family home, or by converting all or part of an accessory building (like a garage, shed, or studio). This includes garage conversions.
Junior ADUs (JADUs) involve converting part of the single-family home into a new dwelling unit that’s no more than 500 square feet and that may share a bathroom with the main home.
Benefits of ADUs
There are many benefits to ADUs! They include:
Rental income. The amount you can rent your ADU out for will vary depending on the location of your property, the size of the ADU, and the amenities the ADU provides.
Increase in property value. A rough estimate is that your property value will increase by 100 times the ADU's monthly rental value. Meaning, if you can rent out your ADU by $1,000/month, your property value will increase by roughly $100,000.
Housing for relatives, friends, and/or caretakers. ADUs are often used to house adult children returning home, retired parents, and people who assist with child and/or elder care.
Opportunity to downsize while staying in your community.
ADU Q&A's
How long does it take to plan, design, and build an ADU? Generally, the amount of time it will take will vary based on several factors, including the design selected, whether your ADU is built on-site or built ahead of time in a factory, and the availability of your architect or builder.
How much does an ADU cost? The cost of an ADU depends on lots of things, including the size of the ADU, the design of the ADU, whether the ADU is built on-site or ahead of time in a factory, and the cost of materials and labor.
Can ADUs be rented? Yes, your ADU can be rented out, although most cities don’t allow short-term rentals of ADUs. This means you can probably only rent your ADU out for a period of month or longer.
Does the owner need to live on the property that the ADU is built on? Generally, the property owner will only have to live on the property if a JADU is built on it.
Does building an ADU impact property value? An ADU will increase the value of your property. The exact amount is difficult to predict, but a very rough estimate is that your property value will increase by 100 times the ADU's monthly rental value. Meaning, if you can rent out your ADU by $1,500/month, your property value will increase by roughly $150,000.
Does building an ADU impact property taxes? Your property taxes will slightly increase based on the added value of the ADU. The base value of your property will not be reassessed. As an example, if an ADU will add $100,000 in value to your property, and your property tax rate is 1.1%, then your property tax would increase by $1,100 ($100,000 x 1.1%).
The information contained herein is not intended to be utilized in lieu of government, tax, legal, or contractor advice.
Please contact your local government, accountant, attorney, and qualified contractors before making your ADU building plans.
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