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Benefits of Accessory Dwelling Units In Long Beach

Dustin Edwards • Jul 06, 2023

Long Beach, CA, is a city that provides alluring opportunities to a diverse population. There will nearly always be a demand for rentals of various shapes and sizes. One of which is Accessory Dwelling Units (ADUs). These structures have different benefits, from expanding your real estate portfolio to dipping your toes into the industry.


Below is a short list of five significant benefits an ADU in Long Beach can provide.


Benefit #1 Increased Property Value

Like with many home improvement projects, there should be an increase in your home’s appraised value once an ADU is built. It’s relatively straightforward. Increasing the living space increases potential value. Whether you choose to use an ADU as a rental or as additional living space for your family, an ADU can increase the potential value of your property. It’s like building an apartment in your backyard. While the increase can vary depending on the neighborhood and location of your property, some people see a potential increase of roughly 20% to 30% of the property's value. 


Benefit #2 Rental Income

One of the biggest benefits of an ADU is that it can provide passive rental income once it's built. If you’re building an ADU as a rental, you must be prepared for long-term tenants. This can provide a steady flow of income every month, and when you find great tenants, that cash flow is likely to continue. ADUs in Long Beach do not qualify for short-term rental, meaning you cannot list them on sites like Airbnb. However, this opens up the opportunity to tip the main house as a short-term rental while the ADU can be lived in by long-term tenants or yourself.


Benefit # 3 Minimize Living Expenses

As suggested, you can live in the ADU while renting out the main house. This is a great way to reduce your living expenses. It's an incredibly viable solution for people looking to downsize after the kids grow up and move out or if you want to simplify your current lifestyle. This also allows you to list the main house as a short-term rental. However, many homeowners prefer to avoid cleaning and managing short-term rentals and would rather have long-term tenants.


Larger Tenant Pool

An ADU can be used to attract a much wider range of tenants. This includes people who are single, couples, or small families. An expanded tenant pool can increase the likelihood of finding stable, reliable, and qualified tenants faster. This has the added benefit of lowering vacancy rates. Vacancies can be highly costly to landlords as it halts rental income and means you must spend money to repair the unit for another tenant. 


Lower Maintenance Costs

Because ADUs are usually smaller and on the same property as the main home, yard work and landscaping maintenance costs can sometimes remain the same. Due to the ADU being a new structure, most of the maintenance done within the first five years should be minor upkeep and inspections to ensure the ADUs systems are functioning well. Naturally, there can be outliers. For new landlords, this presents a unique opportunity to find reliable tradesmen and vendors you can work with in the future.


Building ADUs can be helpful for new landlords and experienced investors alike to improve their bottom line without breaking the bank. If you are planning on making an ADU or need help managing your Long Beach rental properties, we invite you to call us today at (562) 888-0247 or fill out our
Owner Application online.

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By Dustin Edwards 01 May, 2024
Everyone wants to feel safe in their homes. As an investment property owner, it's up to you to decide whether or not to include security measures in your property. Many of the costs associated with the security measures can be included in the rent, meaning not only can you keep your property safe, but you can earn more income in the long run. However, you would still want your tenants to have renters insurance to protect their assets. Today, we’ll discuss the top five security measures you can add to your property and why they're beneficial to you and your tenant. Security Cameras Cameras are probably one of the first security measures people think about when asked about security. Cameras provide more benefits than just surveillance. They provide an extra level of security for the safety of the tenants and their belongings. Additionally, security cameras can be useful when repairs are required. Cameras can aid in supervising repairs and maintenance to ensure you’re receiving the agreed-upon work. During vacancies when the property is empty, security cameras can help keep the property safe from potential intruders. Doorbell cameras are incredibly popular now. They provide the aforementioned safety of a camera that can be accessed remotely, as well as the ability to communicate with visitors. Although one must be careful never to say you're not home, just say you're unavailable to strangers. Security Lights Security lights with motion detectors are another effective tool when adding security measures to your property. These lights brightly if a potential intruder attempts to get near your home. They can provide enough illumination to see the intruder or, at the very least, scare them off. Nowadays, you can find a combination of security cameras and motion-activated security lights, such as the floodlight cam wired plus from Ring . Additionally, because these lights only turn on when motion is detected, they’re more cost-effective than traditional lights with a switch. Illuminate the Property Light generally deters intruders as it's more difficult to hide. Adding lighting to the landscaping can increase the security of the property while creating a relaxing atmosphere. Lights can also be used in other areas of the property to accent features such as trees, benches, or artwork. This can help your property stand out while giving your tenants an additional feeling of safety. Keyless Entry Keyless entry is seen as both a convenience feature and a security feature. They usually use an electronic passcode, biometric data, or grant access through a smartphone app. Physical keys can be lost, stolen, or duplicated. You reduce the risk of unauthorized entry by eliminating the need for a physical key to enter the property. Many keyless entry systems include several features, such as remote locking and monitoring. Although keyless entry is a great new technology for keeping your tenants and properties safe, they’re best used with other security systems. Security Company Nothing beats having an extra pair of eyes on your property for security. This is where security companies like ADT and SimpliSafe come in. While companies may deal with security in varying ways, they aim to protect your investment. While safety is the primary role of a security company, remember that many tenants may be willing to pay more for a premium amenity like a home security company. Keeping your property and tenants safe is incredibly important to the longevity of an investment property. If you’re looking to improve the security of your Long Beach rental property or need help managing your beach city rental property, we invite you to call us today at (562) 888-0247 or fill out our Owner Application online .
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