Do you have an old laundry room you’re not using or a garage that’s been collecting dust for years? If so, converting these unused spaces into an Accessory Dwelling Unit (ADU) is one way to reduce the impact of inadequate California housing.
These secondary living units are a hot topic since California started fast-tracking its development as a way to offset its housing supply issues. By converting decommissioned spaces into rental units, you make room for new income while providing a much-needed service to those seeking reliable housing.
It’s a win-win situation for property owners and the state, says Rick Hoegler, CEO of Pan American Properties.
“Say you invest $50 to $60,000 to complete the ADU; in terms of returns, you’ll get your investment back in rent in roughly five years. In addition, you’ll add incredible value to your property because you’ve just taken an 11-unit building and made it into a 12-unit building,” Rick says.
Getting ADUs up to code
Having an architect on board from the beginning to assess your ADU project is vital because there are specific prerequisites. “The first step is to see if your project qualifies as an ADU,” Rick says. “The next step is planning and development—that’s where a skilled general contractor comes in. Pan American currently has several ADUs in various cities going through planning. We have an architect lined up to do an assessment, and we have a team in place. We can either coordinate it for you or do it in-house.”
ADUs aren’t just for multi-unit property owners. For example, Pan American is currently planning to build an ADU for a young man who bought a single-family home. “He wants to rent it out as a way to offset his mortgage,” Rick says. Others may want to update their mother-in-law units, convert old bonus rooms, or look at large maintenance rooms and see how to transform them into leasable properties. “We can look at your properties from all angles to see what can be converted into an ADU,” Rick says.
When is the best time to invest?
There’s never been a better time to invest in this addition. Given the declining housing supply, the increasing prices of existing houses, rising interest rates, and inflation, it’s become challenging for Californians to buy homes. This means the number of people looking to rent homes will grow, and building an ADU is one way to address these needs while gaining an extra income stream.
We know ADUs
Before you write off your bonus room, consider turning it into an affordable home for someone else. Then, hire Pan American Properties to help you with all stages of work. We are a one-stop shop with all the contacts you’ll need—from architects to general contractor.
“We’d love to talk to you and do an assessment of your place and see if it qualifies. We will evaluate your properties and ensure every space is used to its highest and best use.”
Call us today at (888) 754-9700 or email us at [email protected] to learn more.