Ways To Convert Existing Structures into ADUs for Extra Income

Dustin Edwards • June 21, 2025

An accessory dwelling unit (ADU), also known as a granny flat, is a great way for new investors to test the waters of being a landlord. ADUs can be a great source of extra income, though the initial investment may be high. If you’re choosing to convert an existing structure, you can cut some of the costs while maximizing your potential income.


Today, we’ll go over how to convert unused rooms or garages into an ADU to earn extra monthly income.



Types of ADU

There are mainly two kinds of ADUs that we’re going to go over. A standard ADU, which is typically its own structure, is either built from the ground up or built using the existing frame of a previous structure, such as a garage. The other is a Junior ADU; these are typically smaller with different rules, though in California, they must be located within the existing walls of the primary home. 


A JADU is a great way for first-time landlords to make extra income while renting out a private room with its own entrance. JADUs are limited to 500 square feet and are contained within the walls of the primary residence. It will need its own kitchen, though the bathroom can be shared with the main house; however, this can deter prospective tenants looking for more privacy. Other limiting factors include the homeowner living in either the JADU or the main house if you plan on renting it out. Though a JADU can be significantly more affordable than building a full-sized ADU.


In Long Beach, as of the summer of 2025, a standalone ADU can be up to 1200 square feet; it does need its own bathroom and kitchen. Keep in mind, you’ll need to provide parking for the residents of the ADU unless it's located within a half mile walking distance of public transit, as well as other exemptions. ADUs have an advantage in that you don't have to live within the property to list either the main home or the ADU for rent, meaning there is potential for a much higher return.


Converting a Garage into an ADU

Before converting a garage into an ADU, consider checking your local zoning laws and building codes first. These can change, which can slow down builds. Ensure you’re aware of any changes to building codes, or hire a reputable contractor to help out. Owners should consider planning for essential living features for prospective tenants. For example, flooring, at first, you may consider going for the cheapest option, though this can change if you plan on allowing pets, meaning you’ll want less carpet. To keep your future tenants feeling comfortable and safe, consider exterior lighting to improve visibility and deter thieves. Finally, if you intend to maximize privacy, there are many landscaping designs that can give each tenant a sense of privacy and safety.


Converting an Existing Room into JADU

When converting an existing room, it's important to pick the right one. If you already have a room with its own entrance, this will be ideal. Though if you don't already have a room with its own entrance, consider using an exterior, corner bedroom if one is available. You’ll have to install a lockable door to separate the JADU from the rest of the residence, and a kitchenette will also be needed, though this can be done with a sink, refrigerator, and basic cooking appliances. As previously stated, a bathroom is not required as it can be shared with the main home, though having a private bathroom can significantly increase your rental income.


For improved tenant comfort and satisfaction, consider adding noise-canceling insulation in walls that are shared or using noise-suppressing paint. Lighting both inside and outside of the JADU is also important here as well as it improves safety and makes the unit feel more inviting.


Converting an existing room or structure into an ADU or JADU is a practical way for landlords to start their real estate journey without needing to invest in a brand-new investment property. Keep in mind there are limitations and rules that can slow down build times, so knowing your local building codes and laws is important. If you need help understanding the regulations of building an ADU 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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By Dustin Edwards • June 12, 2025
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ADUs and Junior ADUs, which one is the right one for your property?

By Dustin Edwards • June 6, 2025
With the real estate market as competitive as it is, many landlords are looking into building an Accessory Dwelling Unit (ADU) or Jr. ADU to improve their bottom line with additional monthly income. While this is a great way to earn more, you need to be sure you’re investing in the right upgrade to your property. Below are some of the key differences between ADUs and Jr. ADUs; this way, you can make the right decision for your property. Differences between Junior ADUs and ADUs On the surface, the primary difference between an ADU and a Jr. ADU is the square footage. However, there are many considerations for each type of ADU , significant differences include costs and build limitations. ADUs are generally seen as a larger and more versatile build when compared to a Jr. ADU. They can be built detached from the main home, converting an existing structure, most commonly the garage. In Long Beach, an ADU can be up to 800 square feet or 50% of the gross floor area of the primary dwelling, whichever is smaller. For reference, an 800 sqft living space can be arranged as a 2-bedroom 1-bath home, though with creative use of the space, many investors have been able to fit 2 bedrooms and 2 bathrooms comfortably. If listing the ADU for rent is the goal, this can produce a higher yield, though at the cost of a higher initial investment. Jr. ADU, on the other hand, can only be a maximum of 500 sqft and must be built attached to the existing single-family home. While you can build an entire new addition to accommodate the Jr. ADU, it's not uncommon for homeowners whose homes are bigger than they need to convert a bedroom into a Jr. ADU in order to have additional income . A Jr. ADU does still require an efficient kitchen. Bathrooms can be shared with the main house, though this can deter some prospective tenants. Additionally, the utilities are oftentimes shared with the main house, which can simplify installation, though it can complicate utility costs with your tenant. When an ADU is Right Being able to build a full ADU provides an entirely separate and private living space, which is more desirable to prospecting tenants. This is the preferred choice for most investors, especially those who have unused space in their property. By being built apart from the main house, an ADU may cause less disturbance to those living in the main house, whether that be yourself or another tenant. In Long Beach, CA. ADUs can’t be listed as short-term rentals on apps like Airbnb; that being said, an ADU can command more in rent because of the aforementioned features. If you’re looking for a long-term investment, ADUs increase your property’s value while generating a consistent cash flow. Finally, if you ever plan on selling your rental property, the additional ADU can improve the appeal of your property to future buyers. When a Jr. ADU is Right While a Jr. ADU doesn’t have the same potential as a full-sized ADU, Jr. ADUs are far more budget-friendly. These are a great option for investors who have limited funds. Since Jr. ADUs generally require less work to be done in less time, allowing you to begin making a return sooner. Finally, if your property doesn’t qualify for a full-sized ADU permit due to the size of the property lot, a Jr. ADU can be built primarily through interior work, which may only require reconfiguring existing interior space. Whether you choose a full-sized ADU or a Jr. ADU, the decision depends on more than just the size of the structure, you’ll have to manage filling the vacancy and managing the new tenant. If you need help choosing which ADU is right for you 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 .

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 .
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