ADU is a great way to increase the value of your home, create additional living space, or even generate rental income. But before you get started, there are several key points to consider. Here is a simple guide to help you plan an ADU project.
Know the Rules
Every city has its own set of rules for ADUs, so start by checking local zoning laws and building codes. Here’s what to look for:
Zoning: Is your property in an area where ADUs are allowed?
Setbacks: How far does the ADU need to be from property lines or other structures?
Size Limits: What’s the maximum size allowed for your ADU?
Pro tip: Some cities are more ADU-friendly than others, so research early to avoid surprises.
Plan Your Budget
Building an ADU is an investment, so it’s important to plan your finances carefully.
Costs: ADUs can range from from $50,000 to $400,000 for a custom-built unit.
Financing: Explore options like home equity loans, refinancing, or personal loans to fund your project.
Pro tip: Get multiple quotes from contractors to ensure you’re getting the best value.
Design with Purpose
Your ADU should be both functional and compliant with local regulations.
Size & Layout: Make the most of your space while staying within size limits.
Functionality: Think about how you’ll use the ADU—whether it’s for family, renters, or a home office.
Pro tip: Work with a designer or architect to create a layout that maximizes space and meets your needs.
Utility Connections
Your ADU will need access to water, sewer, gas, and electricity.
Existing systems: Can your current utilities handle the extra load, or will upgrades be needed?
Separate meters: If you plan to rent out the ADU, consider adding separate utility meters.
Pro tip: Consult a professional to assess your utility needs and avoid costly mistakes.
Navigate the Permitting Process
Getting permits can be one of the trickiest parts of building an ADU.
Detailed plans: Provide plans that comply with local building codes and zoning laws.
Fees: Be prepared to pay the permit fee which depends on the location.
Inspections: Your ADU will have to be checked during and after construction.
Pro tip: Hiring a professional to handle permits can save you time and headaches.
Consider Property Value & Taxes
An ADU can increase your property’s value, but it might also affect your taxes.
Higher value: An ADU can make your property more attractive to buyers.
Tax impact: Be prepared for a potential increase in property taxes.
Pro tip: Check with a tax professional to understand how an ADU might affect your finances.
Think About Your Neighborhood
Your ADU should fit seamlessly into your community.
Aesthetics: Design the ADU to match your main house and blend with the neighborhood.
Privacy: Ensure the layout respects the privacy of both your household and your neighbors.
Pro tip: A well-designed ADU can enhance your property’s curb appeal.
Rental and legal aspects
If you plan to rent out your ADU additional steps need to be taken.
Local laws: Understand rental regulations in your area.
Lease agreements: Create a clear, legal agreement to protect yourself and your tenants.
Pro tip: Consult a lawyer to ensure your rental agreements comply with local laws.
Final Thoughts
Building an ADU is a big project, but with the right planning, it can be a game-changer for your property. At EG Modern Construction, we specialize in helping homeowners like you navigate every step of the process—from design and permits to construction and beyond.