An accessory dwelling unit (ADU) is a versatile building you can have in your backyard. Some homeowners build it to make space for friends and family, while others enjoy having additional living space. An ADU provides passive income while living in the main house. You should see an increase in your home’s appraised value.

Today we’ll review a few elements when building your ADU, like an individual apartment you need to consider.

Site Plan

Once you’ve decided to build an ADU, how well does it fit within your property?

This can significantly change the amount you can charge for rent for the ADU. Items such as an individual parking space and a separate entrance for the ADU provides tenants with privacy. This can be difficult as there are going to be multiple structures sharing the lot. However, a simple trick is having the ADU’s entrance in a different orientation than the main building to not communicate a line of sight between the main building and the ADU’s entrance. This can often be enough to divide both buildings and give tenants a private entrance. 

Attached and detached ADUs usually require one parking space. Some projects qualify for exemption from the parking requirements. For example, conversion ADUs and Junior ADUs don’t require parking.

Appliances

ADUs should be outfitted with new, modern appliances, and not the leftover ones from the main house. 

Though it isn’t necessary to provide appliances when renting an ADU, renting an ADU with appliances is a great way to attract more interest from potential tenants. It's well established that the kitchen is one of the most important rooms tenants look at when looking for a place to rent. Appliances like a dishwasher, refrigerator, microwave, and stove can provide tenants with comfort. If you can provide a washer and dryer in the ADU, tenants will appreciate saving time by not having to go to the local laundromat. Good quality stainless steel appliances will not only look great for long periods of time and are easy to clean and sought after by tenants. 

Materials

Think of an ADU like you’re building a house. Ideally, you should choose materials people want to see in their homes. Although spending more money building a rental may seem counterintuitive, the investment is well worth it. Hardwood floors and natural stone countertops like quartz or granite seem expensive for a rental. Though it has multiple benefits, not only will it help your rental stand out, stone countertops are durable, easy to clean, and rarely need to be repaired or replaced. It's an investment you need to worry about only once. 

Hardwood floors are often desirable by tenants due to their ease of maintenance and are generally better for people with allergies. On the rare occasion that the floor suffers damage such as scratches or gouges, the fix can be done without replacing whole boards when compared to the cheaper alternative. 

Good quality tile is an excellent choice for rooms like the kitchen and bathroom. Tile flooring is stain and moisture-resistant, easy to clean, and generally has a much longer lifespan when compared to vinyl or linoleum though the price will reflect this. 

ADUs are an excellent way for homeowners to become landlords. If you need help managing your new ADU or need help deciding if you need a property management company, consider calling us at (562) 888-0247, or feel free to fill out our free rental analysis to see what your rental could yield today.