Frequently asked questions

ADU 101

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What are my ADU options?

In California, single-family properties are allowed one detached ADU, one conversion ADU, and one JADU. Multifamily properties are allowed two detached ADUs, plus the conversion of non-habitable space into ADUs up to 25% of the existing unit count.

Placement options include:

Detached
Attached
Conversion of Existing Structure
Above Existing Structure

ADU 101

How much does it cost to build an ADU?

Each ADU building project is unique. The cost will depend on a range of factors:

The type of ADU (attached vs. detached vs. garage conversion)
The size of the ADU (lower square foot usually means lower cost)
The type of construction (stick-built vs. factory-built)
The existing site conditions
The quality of finishes you desire

On average, the material and labor costs (hard costs) to build an ADU are $290-$300 per square foot for a single-story detached or attached ADU, while garage conversions are lower, typically $215-$225 per square foot. Second-story additions are typically the most expensive options, averaging between $325-$350 per square foot.

Financing Your ADU

Are ADU permit fees waived?

Fees may be waived depending on the area. An ADU Geeks Feasibility Study will show the estimated permitting fees

Permitting and Building Your ADU

Can I rent out my ADU?

Generally, stick-built ADUs have a 10-year warranty.

Leasing Your ADU

Can I build an ADU on my property?

You’ll most likely be able to build an ADU, but it depends on your state and local laws and regulations. You may even be able to build multiple!

ADU 101

What costs should I budget for?

The budget for soft costs (design fees, permit fees, etc.) typically ranges from $22k-$30k for a single ADU, and hard costs (construction expenses) are typically around $225-$350+ per square foot.

Financing Your ADU

How much are permits for ADUs?

From our experience, the average permit fee for ADUs in California is $1400. Permit review fees can vary from $1500-$4500 and beyond, depending on your location and other factors.

Permitting and Building Your ADU

How much rent can I get for my ADU?

Generally, stick-built ADUs have a 10-year warranty.

Leasing Your ADU

What is the typical size for an ADU?

Focus on the ADU's ultimate purpose rather than maximizing size. A studio ADU is usually less than 300 square feet, a one-bedroom ADU between 400-600 square feet, and larger than 600 square feet typically accommodate 2 or more bedrooms.

ADU 101

How can I finance my ADU?

Options to finance an ADU include a cash-out refinance, home equity line of credit, renovation loans, or personal loans.

Financing Your ADU

How much do ADU plans cost?

ADU floorplans for California typically cost $13k+.

Permitting and Building Your ADU

What is cash flow?

Generally, stick-built ADUs have a 10-year warranty.

Leasing Your ADU

How big can an ADU be in California?

The California ADU size limit is generally up to 1200 square feet. Local municipalities may allow for larger units.

ADU 101

What is needed to finance my ADU?

Lenders typically consider your credit score, cash assets, income, and the property’s value.

Financing Your ADU

I already have my plans. Can you help me get permits?

ADU Geeks typically does not submit outside plans. During permit review, there are almost always minor to major revisions that have to be made, and we cannot edit someone else’s plans.

Permitting and Building Your ADU

How can I calculate my return on investment?

Generally, stick-built ADUs have a 10-year warranty.

Leasing Your ADU

How many ADUs can I have on my property?

On a residential single-family property in California, you can typically have one ADU, one junior ADU, and one conversion ADU. Local laws may affect this limit. Book a free consultation with ADU Geeks to learn more.

ADU 101

Are lenders limited to how much they can loan?

Yes, lending caps depend on the loan type and your location.

Financing Your ADU

Can ADU Geeks build my ADU?

Yes, through vetted General Contractors who are experienced in residential construction.

Permitting and Building Your ADU

What is a Junior ADU?

A Junior Accessory Dwelling Unit, also known as a JADU, is an ADU that converts a space in an existing house to a separate dwelling. JADUs have their own set of rules, just like ADUs, and are typically limited to a maximum of 500 square feet. Additionally, the owner of the property is required to sign an owner-occupancy agreement in most jurisdictions.

ADU 101

Can ADU Geeks help me budget for my ADU project?

Our team of experts can help you plan for all the normal costs of building an ADU, including design fees, permit fees, cost of construction, type of financing, and the timing of the financing becoming available during your ADU project

Financing Your ADU

Can I build the ADU myself?

Yes, as an "owner builder," though you must carry the necessary insurance and workers' compensation.

Permitting and Building Your ADU

What is a stick-built ADU?

Stick-built ADUs are constructed onsite with materials brought to the site.

ADU 101

Can ADU Geeks help finance ADUs?

We have lending partners that we can connect our clients with that may be able to help you finance your ADU.

Financing Your ADU

Can I use my own subcontractors?

Yes, although the General Contractor cannot warranty work they didn't perform.

Permitting and Building Your ADU

What is a prefab ADU?

Prefab ADUs are built offsite and shipped to the property, offering a cleaner and faster construction process.

ADU 101

How much does an ADU increase property value?

The addition of an ADU typically increases a California home's property value by $200,000 to $500,000, depending on factors such as size, location, and type.

Financing Your ADU

How long does it take to build an ADU?

Typically 9-16 weeks, not including design and permitting time.

Permitting and Building Your ADU

What are the pros & cons of a stick-built ADU vs. a prefab ADU?

Stick-built ADUs offer flexibility in design and usually have higher resale value but are more costly and take longer to build. Prefab ADUs are more affordable and quicker to build but offer limited customization and typically have a lower resale value.

ADU 101

Who qualifies for a California ADU grant?

The California Housing Finance Agency offers ADU grants to individuals who are considered low-income based on your county. Find your county’s limit on the CalHFA website.

Financing Your ADU

What's the warranty on my ADU?

Generally, stick-built ADUs have a 10-year warranty.

Permitting and Building Your ADU

Will my ADU trigger a tax assessment on my property door?

Building an ADU will be assessed for property taxes but won't trigger a reassessment of your main house's value.

ADU 101

Does an ADU increase property taxes?

Property taxes are approximately 1% of the ADU's assessed value. For an ADU valued at $120,000, the yearly property taxes would be $1,200.

ADU 101

Is building an ADU tax deductible?

Yes, building an ADU is tax deductible in California! If you choose to rent out your ADU, any income you make is taxable.

ADU 101

Can I expense or depreciate my ADU investment?

You can depreciate the cost of the ADU over 27.5 years if rented out. A certified cost segregation study can accelerate depreciation by categorizing expenses into different useful-life categories.

ADU 101

What is a cost segregation study?

Consider the local rental market and amenities offered by your ADU. Rental income potential varies widely depending on location and property features. Our feasibility study can help you determine local rental averages.

ADU 101

Can ADU Geeks do the cost segregation study required to accelerate the depreciation of my ADU building?

We can perform the cost segregation study, leveraging our expertise in taxation to help you maximize your depreciation

ADU 101

How do I know if renting my ADU is a viable option?

The options for your ADU building will depend on the limitations of your property and the unique ordinances for your local jurisdiction. Even if you choose pre-approved ADU plans for San Diego, you’ll still need to do more than choosing a plan to obtain the right permits and customize the plans to your property.
Generally speaking, there are four options for an ADU building. First, there is the classic detached accessory dwelling unit, which can go up to 1,200 square feet. Second, there’s the attached ADU, which can measure to 50% the size of your existing home’s square footage. Third, there’s the garage-converted ADU, which can be a faster value-add for your home. Lastly, you can add or convert a second story or basement into an ADU.
We highly recommend doing a feasibility study with us before jumping into an ADU project.

ADU 101

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