Blog Post

How an ADU Can Add a Rental Income to Your Long Beach Home

Dustin Edwards • May 16, 2023

An accessory dwelling unit (ADU) is the concept of adding or modifying a property that would be a single-family home to allow for an additional unit. Some homeowners build them to give friends or family a place to live. This is why ADUs are sometimes referred to as “granny flats or mother-in-law units.” ADUs can be a great introduction to becoming a landlord.


Below we’ll provide more information about ADUs and why they’re becoming more popular in real estate.


Different Kinds of ADUs 

Suppose you have extra space in your backyard and are interested in building an ADU. In that case, a few variations exist, such as converting an existing garage, building above the garage, or building a separate structure. The most common form of ADU is the garage conversion. They typically already fall within the 800 sq ft or 50% of the primary residence (whichever is greater) size limits. While the majority of the structure is already built, which can economize the rest of the building. While more expensive upfront, building a separate structure allows you to take the build to its limits. This will enable you to configure the unit how you please, which can significantly affect the ADU rental income. Some cities allow building ADUs above garages. However, this is incredibly limiting and sometimes not allowed. Lakewood, for example, currently does not allow this. Although infrequent, the building code does allow for attic and basement ADUs. 


Building an ADU

While you can configure an ADU to your liking when building it from the ground up, there are regulations you must follow. As previously stated, an ADU can’t be bigger than 800 sq ft unless the main house is big enough to accommodate the extra size. When you build, remember that a dedicated parking may be required unless you are within a half mile of public transportation. ADUs must be designed for long-term rentals, meaning you cannot list them on sites like Airbnb. Remember that an ADU is similar to a duplex because it's part of the property and can’t be sold separately. Depending on your city and county, there may be other regulations for building an ADU. It's best practice to find a reliable contractor and architect to help you with your build.


Buying a Home with an ADU

Because an ADU cannot be sold separately from the house, there are some property listings with ADUs built on the property already. While some listings may outright state an additional unit in the description, sometimes you’ll need to dig deeper to find them. Carefully read the report and look at the provided pictures not to miss them.


Potential ADU Rental Income

When you have an ADU, it's similar to having a duplex. You can live in one unit while renting out the other to increase your monthly income. There are many factors to consider when analyzing how much income an ADU can provide. Such as the location, size, configuration, and what, if any, amenities you’ll be providing to the tenant. For better context, you can search how much apartments and duplexes rent in your area. That being said, ADUs can reach an income of $2,000-$2,200 per month. If you also rent the main house, you could earn an additional $3,0000-$3,300+ monthly.


ADUs are incredibly useful structures, and if you want to dip your toes and become a new landlord, they’re a great way to start. Though if you feel like you may need help finding an
architect to design your ADU or need help managing your ADU, 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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