Benefits of Accessory Dwelling Units In Long Beach

Dustin Edwards • July 6, 2023

Long Beach, CA, is a city that provides alluring opportunities to a diverse population. There will nearly always be a demand for rentals of various shapes and sizes. One of which is Accessory Dwelling Units (ADUs). These structures have different benefits, from expanding your real estate portfolio to dipping your toes into the industry.


Below is a short list of five significant benefits an ADU in Long Beach can provide.


Benefit #1 Increased Property Value

Like with many home improvement projects, there should be an increase in your home’s appraised value once an ADU is built. It’s relatively straightforward. Increasing the living space increases potential value. Whether you choose to use an ADU as a rental or as additional living space for your family, an ADU can increase the potential value of your property. It’s like building an apartment in your backyard. While the increase can vary depending on the neighborhood and location of your property, some people see a potential increase of roughly 20% to 30% of the property's value. 


Benefit #2 Rental Income

One of the biggest benefits of an ADU is that it can provide passive rental income once it's built. If you’re building an ADU as a rental, you must be prepared for long-term tenants. This can provide a steady flow of income every month, and when you find great tenants, that cash flow is likely to continue. ADUs in Long Beach do not qualify for short-term rental, meaning you cannot list them on sites like Airbnb. However, this opens up the opportunity to tip the main house as a short-term rental while the ADU can be lived in by long-term tenants or yourself.


Benefit # 3 Minimize Living Expenses

As suggested, you can live in the ADU while renting out the main house. This is a great way to reduce your living expenses. It's an incredibly viable solution for people looking to downsize after the kids grow up and move out or if you want to simplify your current lifestyle. This also allows you to list the main house as a short-term rental. However, many homeowners prefer to avoid cleaning and managing short-term rentals and would rather have long-term tenants.


Larger Tenant Pool

An ADU can be used to attract a much wider range of tenants. This includes people who are single, couples, or small families. An expanded tenant pool can increase the likelihood of finding stable, reliable, and qualified tenants faster. This has the added benefit of lowering vacancy rates. Vacancies can be highly costly to landlords as it halts rental income and means you must spend money to repair the unit for another tenant. 


Lower Maintenance Costs

Because ADUs are usually smaller and on the same property as the main home, yard work and landscaping maintenance costs can sometimes remain the same. Due to the ADU being a new structure, most of the maintenance done within the first five years should be minor upkeep and inspections to ensure the ADUs systems are functioning well. Naturally, there can be outliers. For new landlords, this presents a unique opportunity to find reliable tradesmen and vendors you can work with in the future.


Building ADUs can be helpful for new landlords and experienced investors alike to improve their bottom line without breaking the bank. If you are planning on making an ADU or need help managing your Long Beach rental properties, we invite you to call us today at (562) 888-0247 or fill out our
Owner Application online.

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By Dustin Edwards May 8, 2025
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