adding inventory on the market without the painful and expensive process of development and plan- ning. Cities don’t have to build new streets, expand utility systems, or create new schools. California specifically allows owners to not replace parking as long as the ADU is within a half-mile from public transit, which promotes leveraging systems already in place. Most importantly, ADUs get Main Street money to the table helping cities with
home is now where we live, work, and educate. ADUs are a way to make that happen. Additionally, homeowners looking to augment income can use ADUs to add beauti- ful and functional space to a property at a reasonable price to generate extra income for college, retirement, vacations, or to simply pay off the mortgage quicker. RESIDENTIAL LANDLORDS ADUs are a huge opportunity for residential landlords. It’s almost impossible to build a new detached home for $80,000-$150,000 when you account for the costs of land, materials, and government fees. Landlords have existing inventory, access to private capital, experience managing tenants, and they understand that thoughtful design is important to increasing property values and quali- ty of life for tenants. Would you be
willing to spend $100,000 to build a new ADU that rents for $1,500 on an existing rental? Does this change your average vacancy rate? Cash flow? Depreciation? Quality of tenant you’re able to attract? COMMERCIAL LANDLORDS ADUs on the commercial side come with fewer politics. If you own multifamily or commercial, chances are you won’t have any NIMBY issues as you’re operating in zoning meant for density. In California, multifamily and apart- ment owners have the ability to add up to 25 percent more units by converting unused storage, parking, or underutilized amenity spaces. If you have a 20-unit apartment, that’s potentially five additional units. Owners can also build up to two detached units. Not every state has ADU regula- tions. Even if they do, it may not be
affordable housing instead of everyone relying solely on the government.
WHO SHOULD CARE? HOMEOWNERS It appears that remote work and distance learning are here to stay. This changes the space needs of homeownership since the
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