You can build ADUs in single-family properties, but what about ADU multi-family in California? The good news is that you can construct ADUs on duplexes, triplexes, fourplexes, and even apartment buildings. Undoubtedly, ADUs have and are playing a vital role in resolving the housing shortage problems in the state. Besides, you can earn additional rental income with ADUs in your multifamily. Want to know how else they can benefit you? Well, for that, you have to keep reading!
Your Guide to ADU Multifamily in California
If you are an investor, multifamily owner or a real estate professional, knowing about Multifamily ADUs can benefit you BIG-TIME! Here is all you need to know about ADU multi family in California:
Multifamily ADUs – Comprehensive Guide Chart | |
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What is ADU Multifamily?
You should know that ADU refers to additional dwelling units that you can build on your multifamily property. Most people are unaware of this but yes, you can add ADUs in multifamily properties, including your duplex, triplex, fourplex, etc. And this is not all! You can even build ADUs in apartment buildings. (Hey, multifamily owners! Think about how much benefits you can enjoy with this news). Besides, investors can also explore different multifamily strategies to maximize ROI.
“An accessory dwelling unit or ADU in Multifamily is a secondary unit that can help you provide housing to a relative or earn additional income.” – Investopedia
Moreover, you can take ADUs as mini homes (or an extension to your existing living space. Besides, they are independent on their own, featuring their own kitchen, bathroom, and living area. You should know that these structures can be attached or detached to the main structure. Apart from this, you can also convert the existing garage or basement in your multifamily property into Accessory Dwelling Units.
What Types of ADUs are Allowed within a Multifamily Property?
There are different types of Accessory Dwelling Units or ADUs you can build in your multifamily properties. These include:
- New Construction ADUs
- Converted ADUs
The development of converted ADU Multifamily in California involves converting non-residential spaces in your property into residential spaces. These can include parking areas, storage spaces, garages, or basement. Moreover, these additional units can be both independent or attached structures. On the other hand, converted ADUs are developed from the ground up on vacant land, rather than being repurposed from an existing building. Besides, if you plan to build an ADU or ADUs on your Multifamily property, you have to abide by a certain set of legal regulations. In case you fail to comply with them, you are not permitted for the development of any additional unit at your property.
What are the Requirements for Building an ADU in Multifamily Properties?
Undoubtedly, building an ADU Multifamily in California can be a great opportunity for homeowners and investors. Besides, it’s also a great way to enhance housing supply in areas where there is shortage. But first, it is important to understand the general requirements that govern their construction. After all, these guidelines ensure that ADUs are developed safely and efficiently.
- You can build one attached ADU (or up to 25% of the existing units, whichever is greater) and up to two detached ADUs on the property.
- If you are converting existing space into an ADU, the existing setbacks and distance requirements must be maintained.
- For new constructions or additions to existing structures, side and rear setbacks must be a minimum of 4 feet, with a required building separation of at least 6 feet from any other structure.
- No additional parking is required if the property is located within half a mile of public transit. As a result, it is easier to accommodate more units without the need for extra parking spaces.
- The maximum height for converted spaces remains unchanged. However, for new constructions, the maximum height is capped at 18 feet if located within half a mile of public transit.
- You may also add an additional 2 feet to match the height of existing structures on the site, allowing for the possibility of two-story ADUs.
- Fire sprinklers are not required for ADUs if the existing units do not have them. However, this requirement may vary based on your zoning.
- There is no requirement for the property owner to occupy the ADU, providing flexibility for rental opportunities.
Quick Question: How Many ADUs Can You Develop on a Multifamily?
According to California Law, you are allowed to construct one attached ADU or two detached ADUs on your multifamily property. Moreover, up to 25% of the existing units of your property are convertible into accessory dwelling units.
What are the Benefits of Multifamily ADUs?
Whether you are an investor or just a homeowner who needs some extra space, ADUs can be really beneficial. Apart from increased spaces, they can also be a great income opportunity. How so? Well, let’s find out! Here are the major benefits of Multifamily ADUs you should consider:
⭢ Flexible Uses
One of the key benefits of multifamily ADUs is their flexibility. After all, you can use these units for various purposes. For instance, you can use them as rental spaces, guest accommodations, or home offices, multifamily ADUs, etc. Undoubtedly, they can easily transform to meet different lifestyle demands. Therefore, developing ADUs maximize the utility of the property. Apart from this, multifamily ADUs are a smart investment for the future.
⭢ Increased Income
Multifamily ADUs significantly enhance income potential for property owners. How so? By adding more rental units. As a result, homeowners can generate a steady stream of passive income, helping to offset mortgage payments and other expenses. Moreover, ADUs attract tenants looking for affordable housing options. Furthermore, the presence of ADUs can increase the overall property value. Ultimately, this is a strategic way to boost financial stability and long-term wealth.
⭢ Enhanced Property Value
Those who plan to sell their multifamily property in the future can benefit a great deal from ADU development. After all, they increase the living space of the property. This is not all! They also increase income opportunities for potential buyers. So, it will become a more attractive multifamily investment option. In other words, the presence of ADUs can significantly increase the resale potential of your multifamily.
⭢ Affordable Housing
Accessory Dwelling Units (ADUs) serve as vital affordable housing solutions in states like California. After all, it addresses the pressing issue of housing shortages – efficiently so. Moreover, ADUs offer low- to moderate-income families more accessible housing options without the need for extensive new developments. This is an innovative approach that led to major diversifications in the housing market.
Did You Know?
The recent increase in ADU construction resolved the housing shortage problem in California.
⭢ Community Building
This is a benefit no one really talks about. More ADUs mean more housing opportunities. And more housing opportunities mean building a diverse community. Moreover, ADUs can help you build a dense neighborhood. Besides, it also enhances opportunities for interactions. Moreover, this sense of community can lead to improved safety, shared resources, and collaborative initiatives.
Need any assistance with ADU decisions, feel free to contact Evelyn Baez! She is always ready to help you out with all your investment needs.
Conclusion
Multifamily ADU in California comes with a lot of benefits for homeowners, investors, as well as tenants. These additional units increase your property’s resale potential as well as income opportunities. Besides, they are also suitable for various personal uses, be it a home office or more living space. Anyways, there are two types of ADUs you can choose to build: converted or new development. You can choose any of these based on your needs, financial goals, and preferences. However, you have to comply with a certain set of guidelines specified by the California authorities.
