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ADU (Accessory Dwelling Unit)
What is an ADU or accessory dwelling unit? An ADU is a second living structure or dwelling on the same property as your primary living structure. Other names for ADUs include granny flats, in-law units, backyard cottages, and carriage houses. Regardless of what you call them, ADUs are some of the best ways property owners can contribute to the much-needed affordable housing causes in San Jose and the state of California.
The cost of living in California is higher than the national average, making accessory dwelling units an essential avenue for many young adults and professionals starting to become independent. Not only do ADUs benefit those who live in them, but also property owners who have them built.
Benefits of Accessory Dwelling Units – Insights From a San Jose ADU Builder
As a property owner in San Jose, you can benefit greatly from an ADU being built on your property. ADUs can generate passive income for homeowners by offering long-term rental space or a short-term option like Airbnb. You can easily rent out an affordable secondary living dwelling to a young professional or market it as an Airbnb. In either case, you are adding additional income to your existing. If you’re looking to get started, working with an experienced ADU builder in San Jose such as DreamHome Remodeling & Builders can help you build the ADU that you want.
By renting out your ADU to another individual, you can make your money back in no time because these structures are affordable to construct. Since most of these dwellings are made from cost-effective wood frames, you can expect lower costs than other types of structures.
Many San Jose homeowners use ADUs to support multigenerational living, whether it’s aging parents, adult children, or extended family who want their own space. As we already mentioned, granny flats and in-law units are other names for accessory dwelling units. As these names suggest, many choose to have ADUs on their property in order to have family members nearby with their own living space and privacy. Those worried about a senior family member may consider housing them in an ADU for safety reasons.
It is important to mention recent legislation passed by the state of California requires cities (such as San Jose) and counties to promote and incentivize the creation of ADUs. With such a push from the state, you can expect a higher demand for accessory dwelling units moving forward—and having a reliable San Jose ADU builder on your side can make this process less stressful and complete it smoothly.
When you think of an accessory dwelling unit, you may think of a guest house or small cottage near the primary living structure. This is a common type of ADU, but it isn’t the only one.
Types of ADUs We Build in San Jose
We build several types of ADUs to fit your needs and lot layout, including detached ADUs, attached units, interior conversions, and garage remodels.
Interior ADUs: This type of ADU is built inside of the primary living structure. The most common spaces converted include basements or attics.
Attached ADUs: Convert an attached garage or a separate living space attached to your home. These ADUs are directly attached to the primary living structure.
Detached ADUs: Like some garages or a shed, detached ADUs are built away from the primary living space. Cottages, converted garages, and tiny homes are common options for a detached ADU in San Jose.
If you are interested in building an accessory dwelling unit, you have many different directions you can go. DreamHome Remodeling & Builders team can guide you through architectural design, permitting, and construction to make sure your San Jose ADU project moves smoothly from plans to completion.
Accessory Dwelling Unit FAQs
The city of San Jose has an ADU checklist that may address some of your questions on how to get started. We also recommend taking a look at our Complete Guide to ADUs in California, featuring everything you need to know about these structures. You can find a few frequently asked questions answered below:
How much does it cost to build an ADU?
The construction cost of your accessory dwelling unit will vary on the type you choose. Converting an attic or basement will have fewer costs because you already have the primary structure built. However, you can drive up costs based on the type of materials and quality of features you use. Most of the time, attached ADUs are less expensive compared to detached versions. Again, the quality of materials and features will have a direct impact on price.
Above all, the cost of your ADU will be determined by several different factors. Contact DreamHome Remodeling & Builders to receive an accurate estimate for your accessory dwelling unit.
How much does an ADU increase property value?
Determining how much an ADU will increase your property value is difficult because of the little research gone into the question. Additionally, accessory dwelling units are a relatively new idea, so people are still pinpointing the value of ADUs.
With that said, a study performed in 2012 found ADUs contributed 25% to 34% of each properties’ value. In addition to this finding, the study concluded accessory dwelling units improved the value of the home by an average of 51%.
Does adding an ADU increase property taxes?
California’s property tax rate is 1% of your entire property’s value. Any time your property is sold or adds new construction, like an accessory dwelling unit, the property is revalued. Since adding an ADU does increase the value of your property, you can expect property taxes to increase. Even so, your property taxes can only be increased by no more than 2% per the Consumer Price Index (CPI).
What are the zoning requirements for building an ADU in San Jose?
How long does it take to build an ADU in San Jose?
Timelines can vary depending on your design, the permitting process, and whether you’re building from scratch or converting a garage. On average, it takes a few months from the first plans to move-in day. Some builds go faster, especially if the design is straightforward and all your paperwork is in order. Working with a local contractor, such as DreamHome Remodeling & Builders, who knows the ins and outs of San Jose’s permitting process can help speed things up.
Get Your Free Estimate
Receive a free estimate for your accessory dwelling unit from DreamHome Remodeling & Builders. A project manager with years of experience and industry knowledge will assist you in finding the right ADU type for your property. You can schedule an appointment by calling
(415) 650-2586 or request a free estimate via our contact form.
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