Does an ADU Increase Property Value?

Property renovations are a great way to increase the beauty and value of your home. But improvement projects aren’t always easy or straightforward; if you don’t take the time to plan out your remodel and stick carefully to the budget a project could create more drain than benefit.

Adding a secondary residential space on to your property—known as an ADU or accessory dwelling unit—can be done for any number of reasons, and at a reasonable price if you understand your needs and vision early on in the process. An Expert in the booming ADU Los Angeles market, Levi Construction, recommends seeking professional assistance even in the planning stage.

Many professional outfits, including Levi, offer free consultations that cover building permit requirements in the City of Los Angeles, realistic expectations for an initial investment, and other basic information to get you off the ground. The average homeowner has never taken on an ADU expansion project, so understanding the multi-step process for what it is should be one of the first things you do.

Also important is deciphering the main reason for converting your primary residence into a multi-use residential property: You might be thinking of renting the ADU to make a few extra dollars, or you might be hoping to move your in-laws or an elderly parent into the additional space, these have come to be known lovingly as granny flats. Understanding the primary reason for building a detached ADU or segmenting your main house into multiple occupancy spaces should be the first priority when considering building additional living space.

When it comes to taking the next step, it’s important to think about amenities that will boost the value of the property, both in cost-cutting with state or federal tax credit and in resale value down the road. Utilizing solar power in your main home as well as installing residential solar panels to power the new accessory dwelling unit can achieve both. Solar panels are cropping up everywhere in Southern California, and with new state law due to take effect, they will only become more ubiquitous above California homes. This year, new homes will be required to include solar panels in an effort to reduce emissions across the state.

The California Energy Commission expects a net reduction in homeowner costs due to this dramatic shift in energy sourcing. The rush for new solar technology has created a competitive market for a product that has been commercially available for about fifty years and conceptualized for more than a century. While the installation of a solar system isn’t cheap, the current demand makes for a favorable buyer’s market. As well, solar cells have never been more efficient than current models, making the availability of free energy for your home easier to claim than ever. Finally, the addition of federal solar tax credits—another program in long-standing—makes the prospect of splashing out now more attractive for generating resale value in the future.

Community development is only going to continue progressing toward self-sustaining and intelligent modes of building. If you are considering expanding your current property either for family or as a rental property with an ADU, consider fitting the add-on with modern features that improve quality of life for those who will take up residence in the structure. Low or non-existent energy bills are a major draw for renters looking to maintain slimmed-down monthly bills, coupled with a modern interior your property will be a hot commodity on the rental market. Similarly, giving your guests their own palatial treatment will make them feel welcome and at home as they move from their own primary residence and into yours.

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