top of page

The Complete Guide to Planning and Building an Accessory Dwelling Unit (ADU)


Modern white building with glass sliding doors, green potted plants, and a blue roof. Bright, sunny backyard setting with a white fence.

Why ADUs are Beneficial

Accessory Dwelling Units (ADUs) have become a popular choice among homeowners due to their versatility and numerous advantages. At Build To Perfection, your trusted local general contractor, we understand the value an ADU can bring to your property.


1. Increased Property Value

Adding an ADU to your home can significantly enhance its resale value. Many buyers are drawn to properties with additional living spaces for their rental income potential and multi-generational living options.


2. Rental Income Opportunity

ADUs offer a fantastic opportunity to generate passive income. Whether you choose long-term tenants or short-term vacation rentals, an ADU can help offset mortgage payments and boost your financial stability.


3. Multi-Generational Living

For families who want to stay close but maintain privacy, ADUs are an ideal solution for housing elderly parents, adult children, or extended family members.


4. Sustainable Living

Building an ADU promotes efficient land use and helps reduce urban sprawl. Many ADU designs also incorporate energy-efficient features, contributing to a greener environment.


5. Flexible Space Usage

From home offices and guest houses to art studios or caregiver accommodations, ADUs provide unmatched versatility.


Understanding the Laws and Regulations Involved

Navigating local regulations is essential for a successful ADU project. Here's what you need to know:


1. Zoning Requirements

Key zoning factors include:

  • Minimum lot size

  • Property zoning designation

  • Maximum allowable ADU size


2. Building Codes

ADUs must meet local building codes, covering areas such as:

  • Structural safety

  • Electrical and plumbing systems

  • Fire safety regulations


3. Permitting Process

A typical permitting process includes:

  • Submitting architectural plans

  • Receiving approval from planning and building departments

  • Obtaining necessary construction permits


4. Setback Requirements

Setbacks specify the distance an ADU must be from property lines. Local ordinances detail front, side, and rear setback requirements.


5. Utility Connections

ADUs may share utility connections with the main residence or require separate ones, depending on local rules.


6. Parking Requirements

While some areas require additional parking spaces, many cities have relaxed these rules to encourage ADU development.


7. State and Local Regulations

For instance, California leads the way with ADU-friendly legislation like AB 68 and SB 13, simplifying the approval process.


Modern gray two-story house with wooden fence in sunny suburban neighborhood. Tall tree behind, blue sky with clouds. Peaceful mood.

The ROI of Building an ADU

Investing in an ADU can yield substantial returns:


1. Rental Income

ADUs can generate steady rental income. In high-demand areas, monthly returns can be impressive.

  • Example: Renting an ADU for $1,500 monthly amounts to $18,000 annually.


2. Property Value Appreciation

Homes with ADUs often sell at a premium compared to those without.


3. Cost Efficiency Compared to Traditional Housing

ADUs generally have lower per-square-foot construction costs compared to standalone homes.


4. Potential Tax Benefits

Homeowners may qualify for tax deductions on ADU construction expenses, such as loan interest.


5. Long-Term Flexibility

ADUs can adapt to changing needs over time, whether for rental income or family use.


Steps to Plan and Build an ADU


1. Assess Your Property’s Potential

Evaluate whether your property meets zoning and space requirements. Consider factors like available yard space and access points.


2. Define Your Goals

Determine the purpose of your ADU, whether for rental income, family use, or a home office.


3. Budget Planning

Include costs for:

  • Design and architectural fees

  • Permits

  • Construction

  • Utility connections

  • Landscaping


4. Hire Professionals

Partner with experienced local general contractors like Build To Perfection to ensure a seamless construction process.


5. Obtain Permits

Submit plans and secure permits before starting construction.


6. Construction

Manage the process carefully to ensure compliance with regulations and quality standards.


7. Inspection and Approval

Schedule inspections during key construction phases to meet building codes.


8. Final Touches and Landscaping

Complete the project with interior finishes and landscaping.


9. Move-In or Rent Out

Once complete, your ADU is ready for occupancy or rental.


Building an ADU is a strategic investment that offers countless benefits, from increasing property value to generating additional income. As your trusted local general contractor, Build To Perfection is here to guide you through every step of the process, ensuring your ADU meets your needs and exceeds your expectations.


Contact us today to start planning your ADU project.

bottom of page