How an ADU Can Add a Rental Income to Your Long Beach Home

Dustin Edwards • May 16, 2023

An accessory dwelling unit (ADU) is the concept of adding or modifying a property that would be a single-family home to allow for an additional unit. Some homeowners build them to give friends or family a place to live. This is why ADUs are sometimes referred to as “granny flats or mother-in-law units.” ADUs can be a great introduction to becoming a landlord.


Below we’ll provide more information about ADUs and why they’re becoming more popular in real estate.


Different Kinds of ADUs 

Suppose you have extra space in your backyard and are interested in building an ADU. In that case, a few variations exist, such as converting an existing garage, building above the garage, or building a separate structure. The most common form of ADU is the garage conversion. They typically already fall within the 800 sq ft or 50% of the primary residence (whichever is greater) size limits. While the majority of the structure is already built, which can economize the rest of the building. While more expensive upfront, building a separate structure allows you to take the build to its limits. This will enable you to configure the unit how you please, which can significantly affect the ADU rental income. Some cities allow building ADUs above garages. However, this is incredibly limiting and sometimes not allowed. Lakewood, for example, currently does not allow this. Although infrequent, the building code does allow for attic and basement ADUs. 


Building an ADU

While you can configure an ADU to your liking when building it from the ground up, there are regulations you must follow. As previously stated, an ADU can’t be bigger than 800 sq ft unless the main house is big enough to accommodate the extra size. When you build, remember that a dedicated parking may be required unless you are within a half mile of public transportation. ADUs must be designed for long-term rentals, meaning you cannot list them on sites like Airbnb. Remember that an ADU is similar to a duplex because it's part of the property and can’t be sold separately. Depending on your city and county, there may be other regulations for building an ADU. It's best practice to find a reliable contractor and architect to help you with your build.


Buying a Home with an ADU

Because an ADU cannot be sold separately from the house, there are some property listings with ADUs built on the property already. While some listings may outright state an additional unit in the description, sometimes you’ll need to dig deeper to find them. Carefully read the report and look at the provided pictures not to miss them.


Potential ADU Rental Income

When you have an ADU, it's similar to having a duplex. You can live in one unit while renting out the other to increase your monthly income. There are many factors to consider when analyzing how much income an ADU can provide. Such as the location, size, configuration, and what, if any, amenities you’ll be providing to the tenant. For better context, you can search how much apartments and duplexes rent in your area. That being said, ADUs can reach an income of $2,000-$2,200 per month. If you also rent the main house, you could earn an additional $3,0000-$3,300+ monthly.


ADUs are incredibly useful structures, and if you want to dip your toes and become a new landlord, they’re a great way to start. Though if you feel like you may need help finding an architect to design your ADU or need help managing your ADU, we invite you to call us today at (562) 888-0247 or fill out our Owner Application online.

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Beach Rentals Need These 3 Maintenance Items Before Summer Starts

By Dustin Edwards • May 30, 2025
Summer is a great time of year where people enjoy a number of outdoor activities. Though for landlords, summer brings with it a list of maintenance items and preventative care for their properties. Below, we’ve gathered three of the most important maintenance items to do before summer starts. Service your HVAC System Southern California summers are getting hotter and hotter, if you want to maintain tenant satisfaction you’ll need to have the HVAC or any A/C or cooling system properly serviced . Filters should be cleaned or replaced, and the ductwork should be inspected. For rentals with window units or mini-split systems should also be thoroughly inspected as well for optimal cooling. Doing proactive maintenance can reduce the risk of the cooling system breaking down during peak usage while also improving the system’s efficiency. This can lower utility costs for your tenants while extending the lifespan of your cooling system, saving you money in the long run. Additionally, consider inspecting your window and door seals for leaks. If the seals are broken, it allows hot air into the living space, this increases the cost associated with cooling while adding more load to the HVAC or cooling system. While not directly a part of the HVAC system, ensuring there aren’t any breaks in the seals helps extend the lifespan of your cooling system which is beneficial to your bottom line. Inspect your Roof The condition of a roof is oftentimes ignored since they tend to last over twenty years, and some property owners may not even be sure when the roof was last replaced . A poorly conditioned roof is one of the primary ways for a rental property to drive up the costs of repairs and tenant complaints. A damaged roof can inefficiently insulate a home, making it harder to keep it cool. It can also lead to water leaks during rainfall, which can lead to water damage, stains, and mold growth. While summers tend to be dry, the coastal cities such as Long Beach may see unexpected shifts in weather, which can bring sudden rainstorms or increased humidity. Fixing a small roof leak is relatively inexpensive, however, leaving said leak to grow can result in an emergency repair can cost thousands especially if a tenant has already moved in. A thorough roof inspection is a great maintenance item to do during a vacancy period especially as this can result in a positive experience with new tenants. This can lead to a long term stay with many lease renewals. Check for Signs of Pests Pest infestations are one of the fastest ways to ruin a tenant’s stay while also damaging a landlord’s reputation. Pests such as ants, cockroaches, other bugs, and rodents are common in many beach cities, especially during the warmer seasons. Being in a city, you’ll likely never truly be rid of pests, though, even a single complaint about an excess of bugs or rodent droppings can lead to bad reviews online, service calls, and in severe cases, lease termination. These pests not only create an unwelcome environment for your tenants, but they can also cause real damage to your investment property. Cockroaches are known to damage small wiring in appliances, ants can ruin food and get in everything, while rodents can chew through walls, plumbing, and even electrical wiring. Landlords should schedule regular ppest inspectionsto check for early signs of pest activity before the hotter season begins. Much like everything in this article, preventative maintenance is significantly cheaper than an emergency call, in this case to an exterminator. If you want to keep your tenants happy and your property well taken care of, preventative maintenance is a must. If you’re unsure about the signs to look for when doing routine inspections or you need help managing your Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .

What Is A Solar Battery and Does Your Rental Need One?

By Dustin Edwards • May 27, 2025
A Solar Battery is an important party of a solar panel system. However, is it valuable for a rental property? Read on to discover.

If You Have These 3 Things, Consider Putting Solar Panels

By Dustin Edwards • May 22, 2025
As California becomes more and more electric, the idea of installing solar panels becomes more enticing for many landlords. While the initial investment may be quite expensive, there are a few things to consider before making the decision. By keeping these factors in mind, you can greatly reduce the overall cost of installation as well as reduce your operational costs throughout the lifespan of the solar panels. Below, we’ve compiled three considerations you should keep in mind before making your decision to install solar panels on your rental property. Long Term Ownership For landlords whose plan is to own their rental property for a long period of time, a solar energy system can be a strategic investment with long-term benefits. The longer you own a solar panel system, the lower the operational costs can be for your rental property. Unlike a homeowner, who sees their return through their energy bill. A landlord sees their return through lower vacancy rates and higher lease renewals. The initial expense associated with installing solar panels can be offset over time through reduced energy costs, improved property efficiency, and adjusting your property’s rent accordingly. Tenants are quite receptive to features that lower recurring expenses, such as their electricity bill. With so many people working from home, a lower energy bill can result in an improvement in tenant satisfaction , as well as reduced vacancy and turnover rates. The use of solar panels fits well in a long-term investment strategy that focuses on keeping operational costs low and reliable while improving your rental property’s value . Stand Out From the Competition In a competitive rental market, such as in Long Beach, CA. Features such as solar panels can help your property stand out to prospective tenants. Features such as solar panels can increase a rental property’s attractiveness to many tenants, though, specifically environmentally conscious individuals and younger tenants tend to gravitate towards rentals with solar panels more. Properties that are energy efficient appeal to renters who prioritize lower utility bills and more sustainable living conditions. These features may influence a prospective tenant’s decision when choosing between rentals of similar characteristics and space. Additionally, tenants who are interested in sustainability often care for the rental and follow the rules better than others. They are also more likely to opt into lease renewals. This means that solar panels can improve your bottom line through a more consistent monthly rental income due to the reduced vacancy and turnover rates. Your Roof is in Good Shape It goes without saying that your roof needs to be in a structurally sound condition in order to install solar panels. In general, a roof is expected to have a lifespan of twenty to twenty-five years, If your roof still has over fifteen years of proper functionality, it's ideal for installing solar panels without requiring additional costs for repair. If your roof is in good condition and won't require repairs in the foreseeable future, you’re far less likely to face problems that would require you to remove the solar panels temporarily. This can be expensive, which is why it's important you don't properly inspect your roof before making the decision to install solar panels. Installing a solar system on your rental property offers measurable benefits to your bottom line in reducing your vacancies and turnover rates, as well as keeping your rental property competitive in the market. If you’re unsure if your roof is structurally sound to install solar panels or you need help managing your Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .
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