FAQs

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A.D.U. stands for Accessory Dwelling Unit. Also commonly referred to as pool houses, granny flats, and casitas, ADU’s are basically an additional home on a property that already has a home. In order to classify your structure as an ADU there are three components it must have:

1. A functioning kitchen

2. A bedroom with a closet

3. A full bathroom with toilet and shower

ADUs can be up to 1,200 sf in size and can be attached to a main residence or detached. These dwellings have exploded in popularity after recent California law changes made them easier to build. They are a great way to expand your family, take care of aging family members, increase your home's value, have an extra space for visiting friends and family, and have a healthy rental income stream.

Here are all the reasons our clients have chosen to build ADUs:

1. Expand your family

2. Take care of aging family members

3. Increase your home's value

4. Have an extra space for visiting friends and family

5. Have a healthy rental income stream

6. Utilize your detached garage for more than just storage

There are 3 common types of ADUs that we build.

1. Garage Conversion: These are the most cost effective ADU projects because the foundation and framing work is minimal and often times there are some existing utilities near the garage.

2. Detached New Construction:

These are the second most cost effective ADU projects because there is minimal demolition and no existing foundation and framing to tie into. There can be however a lot of utility tie-in issues being further away from the primary residence.

3. Attached Addition: These are the least cost effective ADU projects because there is a lot of demolition to the primary residence and usually difficult framing tie-ins. Often times the primary home has difficult to match roofing which means the whole house may need to be re-roofed to look right.

The costs can vary greatly depending on size, finishes and location of existing utilities. Let’s say you have a 3-car garage you are converting to an ADU. There is very minimal sewer tie in work, minimal exterior framing and almost no foundation work. This may cost $130k. Now let’s say you want to build a 1200 sf ADU on the far back of your property away from the utilities with quality cabinetry, multiple bathrooms, and top end appliances. You could spend as much as $400k for that build. We've seen million dollar ADUs here in Sacramento. It all depends on what your needs are.

Rents from an ADU are comparable to 1–2-bedroom apartments. In California this average rent is somewhere between $1,800 and $2,000 per month. Let’s say we are somewhere around $230k to build a detached ADU that rents for $1,800. If you account for a 10 percent vacancy rate and 5 percent rent increase per year you would have an 8 and half year return on investment. It’s not unreasonable to assume a 7–10-year return for these projects. Though 7-10 years seems like a long time, remember that if this is your forever home, you will also have increased home value, an extra space for visiting friends and family, and a healthy rental income stream.

Budget the following timelines for these projects:

Custom Home Build: 8-12 months

ADU Build: 4-7 months

Kitchen Remodel: 3-5 months

Bathroom Remodel: 8-14 weeks

Kitchen Update: 2-7 weeks

Because an ADU is considered as a dwelling, the same electrical requirements for a 2000 square foot apply to a 600 square foot ADU. This means that the average ADU will have around 12-16 circuits with a 100-200 amp electrical service. Exterior lighting must have a timer or solar switch, exterior outlets must be weather resistant and most interior outlets will need to be arc fault protected. Most lighting is also required to be on a dimmer switch as well as a vacancy switch in the bathroom. Smoke detectors must also be interconnected so that multiple sound off when one is triggered.

Thinking of building something in California this year? Make sure to budget for these new REQUIRED green building standards.

1. All buildings with some exceptions will be required to have a minimum size photovoltaic solar system and homes 5,000 sf or greater will require a battery storage system

2. HVAC units must now have a minimum efficiency rating of 15 SEER which will mean a greater up-front cost but a lower heating bill over time.

Please note, these are required IN ADDITION TO Title 24 Requirements.

Title 24 Requirements have a HUGE impact on your ADU design. Title 24, aka California’s Energy Code, is basically a points system that rewards energy efficient building and punishes building that leads to more energy usage. Every code cycle, California creates a model home of efficiency to which a new home must meet or exceed in efficiency. 

Some of these measures may be: Quality insulation, high efficiency HVAC systems, or hiring a third-party inspector to verify the home has met various green building standards. 

There are hundreds of different ways to get the Title 24 points required and the costs can vary GREATLY. So, it’s extremely important to hire a contractor and design team that can find you ways of meeting Title 24 that aren’t high in labor or material cost.

Most ADU's have a simple, rectangular layout because they are often garage conversions or additions. Here are 3 tips to help give your ADU the character it deserves:

1. Add some ornate door and window trim with an accent color.

2. Introduce as much lighting as possible: downlighting with sconces and up lighting below landscaping.

3. Consider mixing 2 or 3 types of siding with wainscoting or a full height wall section.

Not considering how your propertydrains can be a costly mistake during your ADU build. Before you consider your ADU placement it's critical to check your backyard during the rainy season and know where water is pooling or moving into a neighbor's yard. A simple thing like poor downspout placement can mean a very angry neighbor and a lot of landscaping removal to install an underground drainage system. Sometimes drainage systems have to be installed no matter where you place your ADU but it's better to know you'll need one BEFORE you start.

A junior ADU can help maximize your rental income. A Junior ADU is a small ADU that is attached to a main residence. These ADU's must be 500 square feet or less and they may share a bathroom with the larger residence. Junior ADU's may also be attached to a normal ADU as well which is great because you can have two ADU's in one structure. Because most jurisdictions allow for one ADU and one Junior ADU, this is a clever way to have multiple tenants in one structure giving you great rental income potential.

Egress is the ability to escape a room in an emergency. There must be a clear path of escape with minimum dimensions of doors, windows and hallways. It is especially important in an ADU because of their proximity to neighboring trees and fences that can fall down in a storm and block entrances. Make sure you have a clear path of egress from each ADU bedroom and immediately outside to an open area.

H.E.L.O.C. stands for Home Equity Line Of Credit. HELOC loans work like a credit card based on the equity of your home and even the potential future equity of your home after an ADU is built. In today's high interest rate environment, this loan option is great because it doesn't affect the existing rate on your home’s mortgage. So, you only pay the higher rate on what you pull out for your ADU project. Here’s how it works.

Say your home is worth $1M and you owe $500k. In other words, you have $500k in equity. With a HELOC, you are basically opening a credit card for up to $500k. You will then only pay today’s higher interest rate, let’s say 7% on the amount that you spend on this line of credit. Let’s say you spend $300k on a new ADU. You will only pay 7% on this $300k vs a cash out refinance where your entire mortgage will be affected by the higher interest rate.

Home maintenance projects are often overlooked and can be very expensive. When you buy a home it's important to know when the last time it was carpeted, roofed, painted, had mechanical equipment replaced, etc. Here's a list of how often the most common maintenance projects need to be done and how much they currently cost:

1. Roof replacement (25-40 years) ($20-60k)

2. HVAC replacement (15-20 years) ($10-20k)

3. Tank Water Heater replacement (8-12 years) ($2-5k)

4. Exterior Painting (7-15 years) ($4-20k)

5. Carpet Replacement (6-10 years) ($5-10k)

As of 2023, no jurisdiction can impose a height restriction less than 18 feet unless under very specific circumstances. It’s difficult, but not impossible to keep a two-story ADU at 18 feet height or less. You may have to introduce engineered lumber ceiling joists and a low-pitched commercial style roof, but it’s now almost guaranteed you can get your two-story ADU anywhere in California.

The city of Sacramento recently released (3) new sets of pre-approved plans. The plans are simple, rectangular ADU’s designed for multiple lot locations including zero lot lines! One plan is for a studio, one plan is for a one bedroom, and the largest includes space for two bedrooms! If you’re looking for an expedited, less expensive ADU option in Sacramento city limits check out adu.cityofsacramento.org. 

1. Plumbing fixture optimization: One of the largest costs of an ADU is the plumbing, if you locate the water heater, kitchen sink, and bathroom closer together they can share vents, supply lines are shorter, and there is less trenching. This small change can save you thousands!
2. Shape: A rectangular layout is substantially cheaper than an "L" shape or "U" shape. The amount of labor in the roof for the more ornate layouts is substantially greater than a simple rectangle.
3. Reduce cabinetry: Another large cost in ADU construction is cabinetry. Doing an inventory of exactly what you'll need to store and providing only enough cabinetry for those items      can save as much as ten thousand dollars on a typical build.

The design process for a new build often takes longer than the build itself and can be a bit overwhelming. The first person you will want to consult with is the contractor, they can give you a rough idea of cost and point you in the right direction to a quality architect. The architect will take care of turning your rough ideas into a permit-ready set of plans. Once this set of plans is complete, I highly recommend using an interior designer to pick out your finishes. You’ll then return to the contractor for a final estimate, and you are ready to turn the plans into the building department!  

When talking to people about ADU’s I get asked the question “Is that like a tiny home?” The answer is NOOOOOO! While a tiny home may be classified as an accessory dwelling unit if connected to a permanent foundation and tied into utilities, they typically are not. Usually, tiny homes are designed to be mobile; they are made of very light construction materials and are narrower than a car lane. The most common reason for our clients to build an ADU is to move in aging family members. A two story, loft bed might not be the best option for grandma.

Before you build your ADU it's important to check with your local building department to see your maximum lot coverage. Lot coverage is the total combined square footage of all structures on your property. This means if the maximum lot coverage is 40% and your home takes up 30%, your ADU may be limited so you don't go over the 40% threshold. Sometimes there are exemptions with ADU's so in some cases you may go over these limits.

Often times a homeowner will be so excited to start their ADU build or remodel that they will want to apply for the permit as an owner-builder then hire a contractor later. Not such a great idea. During the submittal process, the city or county will typically ask for documents from the permit applicant that involve technical construction information. If these documents are filled out incorrectly it could mean a lengthy work stoppage at the first inspection until the problem gets resolved. In some cases, it could mean having to apply for a whole new permit! Save yourself the headache, let your contractor pull the permit.