ADUs and DADUs: What to Look for When Buying Property

Are you looking at properties with the intention of adding an attached Accessory Dwelling Unit (ADU) or a detached Accessory Dwelling Unit (DADU)? There are a few important things to think about when considering if a property is right for you and your ADU or DADU goals:

1. Is the property in a good rental market area?

The addition of an ADU or DADU on a property presents a few different rental options:

• Rent out the ADU as a short or long-term rental, or provide housing to family or friends at lower than market rates.
• Live in the ADU and rent out the primary house at market rates (or to family or friends at lower than market rate!).
• Rent out both the ADU and the primary house separately at market rates, though this option is only allowed with no owner-occupancy requirement.  Of course, every jurisdiction will have unique regulations that specify what type of rentals are allowed.

2. How ADU friendly is the jurisdiction?

Each jurisdiction will have its own regulations for ADU’s. How ADU friendly a jurisdiction is will have an impact on the timeline for your project. In an ADU friendly jurisdiction, an internal renovation may be completed in weeks while a fully customized DADU could take over two years to design, permit, and build.

Depending on the jurisdiction, you will need to submit an ADU application, construction addition/alteration permit, or comparable building permit. In addition, any electrical, mechanical, plumbing, and sewer work will require standard permits.

A pre-approved DADU plan from Magellan Architects.

Some jurisdictions are currently evaluating their permit processes to become more ADU friendly. This may include providing off the shelf pre-approved plans and models that do not need additional approvals, cutting weeks out of the permitting process.

3. Is the property close to transit, freeways, job centers, or services?

ADUs and DADUs that are near major transit and job centers, freeways and services offer a variety of benefits:

• Opportunity: ADUs provide more options for people of all incomes to live near jobs, schools, transit, and parks.
• Stability: They can also help build economic security and housing stability for middle- and low-income families by providing workforce housing near job centers.
• Sustainability: The addition of small, efficient ADU or DADU homes in existing neighborhoods helps prevent sprawl, cuts traffic and commutes, tames infrastructure needs, and fights climate change.

4. Is the property on septic or sewer?

If the property is on septic, ensure that there is capacity and enough space for an ADU. Any plumbing and sewer work will require standard permits.

There are a few options for potential ADU/DADU additions to your property- basement conversions, backyard cottages, or over the garage conversions may be possible.

5. Are you building a detached ADU (DADU)?

If you are building a DADU, look for a larger relatively flat back yard. Slopes, odd shaped lots, wetlands and geologic hazards, and thick vegetation can decrease viability and increase site development costs.

6. Are you building an attached ADU?

Whether you are adding an ADU over the garage or converting your attic or basement into an ADU, there are a few important considerations to keep in mind. Look for ease of entry, high ceilings in basements, and ease of adding a bathroom and kitchenette.

Contact us today for a list of potential ADU/DADU properties!