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You are here: Home / Blog / How to Build an ADU in San Diego

Sherry Chen / August 25, 2020

How to Build an ADU in San Diego

From 2017 to 2019, the City of San Diego saw nearly a 300% increase in the number of ADU applications submitted to the building department.

And that number is only getting higher.

If you are thinking of building an ADU on your property, you are not alone.

San-Diego-ADU-growth-chart

Source: San Diego Development Services

The first step to building an ADU is to ensure that your property eligible for an ADU, or as I like to call it: ADU-able. If you’re looking to buy an ADU-able property, get in touch with me. I’ll help you find the properties with the most ADU potential available on the market today.

Find your ADU home

There are three main phases to building an ADU:

  • Design
  • Permits
  • Construction

Obviously, any major construction project requires advanced planning and due diligence. Therefore, the goal of this guide is to walk through the main phases of building an ADU and to cover the most important factors to consider. My hope is that by the end of this guide, you will feel more knowledgeable about tackling your ADU project and will feel more confident about getting started. Ready? Let’s go.

ADU-designer

Phase 1) Design Your ADU

As mentioned in our ultimate ADU guide, it is critical to work with a designer who has experience with ADUs. Not only will they understand how to design for small spaces, but they will be knowledgeable about the ADU laws affecting your area. This is important because ADU laws can differ from city to city, so it’s essential to work with a designer who is familiar with latest laws and regulations to ensure that your ADU project will run smoothly and efficiently.

The design of your ADU will depend entirely on your goals. Evaluate your goals to help inform the size, amenities, and features you want your ADU to have. Here are a few of the most common reasons why homeowners build ADUs.

  1. Rental

    As a rental, you’ll probably want to take the most cost-effective route. However, you’ll also want to make sure that your unit is designed in a way that can get you the best rent for your area. For example, a one bedroom unit will typically rent higher than a large studio. Your ADU-experienced designer will be able to provide you with a design that maximizes the amount of available space you have.

    Additionally, there are certain amenities that tenants love, including:

    • In-unit washer/dryer
    • Natural Light/windows
    • Updated fixtures
    • Outdoor space
    • Storage and closet space
    • Laminate wood floors
    • Parking

  2. Aging family members

    One of the main reasons why homeowners are turning to ADUs is to provide a solution for their aging parents. With the rising costs of nursing homes and assisted living facilities, ADUs can be a more cost-effective and safe way to keep your loved ones closeby. By keeping elderly parents nearby, you’ll be able to provide them with the care they need while still maintaining their independence.When designing a unit for senior family members, you may want to consider universal design.

    ADU-aging-parents-grandma

    What is universal design?

    Universal design includes design elements that increase accessibility to all people regardless of disability or age. Universal design elements may include:

    • Doorways that are wide enough for a wheelchair
    • Wide bathrooms that allow a wheelchair to make a full turn
    • Ensuring there are no thresholds or levels on the floor or entryways By incorporating universal design into your unit, you will help ensure that your parent or loved one will be as safe as possible. Therefore, when choosing a designer, it’s important to choose someone who has experience building accessible spaces and is able to point out certain elements in the design that you may have not thought about yourself.
  3. Guest house for yourself, friends or family

    ADUs are a great way to house guests who are visiting. But did you know that more and more homeowners are creating ADUs for themselves to live in? This is particularly common with empty-nesters. Their adult children are out of the house, and they don’t want to deal with the maintenance of living in a large home. By moving into the ADU, they’re able to rent out their primary home for maximum rental income.

When designing an ADU for yourself or for friends and family to stay in, the approach will be a lot different from designing the unit as if it were a rental. Evaluate what you want the most out of a smaller living space, and make it yours.

You want the unit to be as comfortable as possible and if you can afford to splurge on the things that are important to you such as: noise-reducing windows, or the nice granite countertop you’ve been eyeing on Pinterest — go for it! Now that you’re designing a smaller space, you might be able to afford the dream kitchen you’ve always wanted but couldn’t afford in your much larger home.

We’ve covered a few high-level design concepts to help you visualize your dream ADU. Your designer will work with you on achieving your goals, and should be communicative and collaborative throughout the process. Once your designs are completed, it’s time for the next phase: submitting for permits.

Phase 2) Permit Processing

Once you have a full set of plans, it’s time to submit them to the city building department for building permits. Permit processing is easily one of the most daunting tasks in any construction project, let alone building an ADU.

City building departments aren’t always the easiest to get a hold of, and unless you’re a professional designer or architect, it may be difficult to understand the ADU rules and regulations to abide by in terms of the design.

Therefore, it’s ideal to work with a designer that will go through the permit processing with you. Not only will they be able to work efficiently in implementing feedback from the city, but a good firm will likely have connections with your city building department to get you your permits as cost-effectively as possible.

In the past, submitting for permits was a huge bottleneck with homeowners waiting as long as 6 months just to receive an answer.

Things have changed.

As of 2020, California state law mandated that local jurisdictions must act on ADU applications within 60 days. Although this doesn’t mean that your ADU will get approved right away, it means that the city is reviewing your plans and must keep things moving.

There are also a number of fees that you’ll need to cover, depending on the city you’re located in. These fees include, but aren’t limited to:

  • School Fees
  • Water/Sewage Fees
  • Plan Check Fees
  • Development Impact Fees (varies by municipality)

Depending on the scope of your project, you can expect to pay at least a couple thousand dollars in permit fees. The good news is that as of 2020, state law has mandated that all ADU units under 750 sq ft are exempt from Development Impact Fees. In San Diego, this is an automatic savings of an estimated $15K!

ADU-building-contractor-owner

Phase 3) Build Your ADU

After your plans have been approved by the city building department and you have permits in hand, it’s time to build your ADU. If you’re hiring a general contractor to build the unit for you, it is critical that you do your due diligence when selecting the right person for the job. Again, you’ll want to work with someone who has experience building ADUs to help ensure that your project will go smoothly.

Your ADU will not be completed overnight. You can expect the build to take about 3-6 months. This means months of having an active construction site in your backyard or home, and a team of plumbers, electricians, carpenters, and other construction teams in and out of your property. Therefore, it’s essential to work with a general contractor who is experienced, knowledgeable, honest and most importantly, communicative throughout the entire build.

Once you’ve received your building permits, it’s time to start construction. Again, it’s important to find a contractor with ADU experience. Since building an ADU can take 3-6 months, you’ll want to work with a team who is experienced, honest, knowledgeable, and communicative throughout the process.

After months of hard work and dedication, congratulations! You can finally enjoy your ADU. As you can see, building an ADU is a long process that isn’t easy. Building an ADU is certainly a big investment. But if you make the right decisions by investing in the right teams to work with, you will be saving yourself from a lot of headache and stress in the long run.

Are you looking for an ADU-able property to build your own ADU? Find out how to identify ADU potential with my quick guide or contact me to get started on your property search.

Let’s start your search

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Sherry Chen, Realtor

Kappel Realty Group

Compass

DRE #02109149

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sherrychenrealty

✨ San Diego Realtor | Compass
🏘 ADU Specialist
🏆 SDAR Gold Award 2021
🎓 UCLA Alum
DRE 02109149
Kappel Realty Group

Sherry Chen
🌟 JUST SOLD!🌟 An incredible triplex in the h 🌟 JUST SOLD!🌟 An incredible triplex in the heart of University Heights/North Park. This incredible unit mix offers a 3BD/2BA 1500 sq ft front house with TWO 2BD/1BA units behind. ⁠
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Now, let's get into the zoning. This property has a unique overlap of zoning including #CompleteCommunities and multifamily density, this 7,000 sq ft lot is for up to 36 units! ⁠
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I am so happy for my buyers who are about to get married this fall. This will be their first home together and it was important that their first property be an investment. My buyer was attracted to this property for its incredible development potential, and plans to develop within the next 5 years. This listing also came with the due diligence and feasibility reports necessary for development. In the meantime, they plan to convert the huge 4-car detached garage into another ADU for added cashflow 💰⁠
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I could not be happier for my (almost) newlywed clients who plan to hold on to this property into retirement. We initially lost this offer to an all-cash buyer. By maintaining consistent communication and rapport with the listing agent, I was able to secure this incredible deal for my buyers. It just goes to show that although it's a competitive market, working with the right agent makes all the difference. ⁠
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Congratulations to my buyers for securing an incredible first home and investment property which will change their lives forever!⁠
⁠
Sherry Chen⁠
sherry.chen@compass.com⁠
@KappelRealtyGroup⁠
Compass @sandiegocompass⁠
DRE 02109149⁠
Equal Housing Opportunity⁠
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#sherrychenrealty #theaduagent #investmentproperty #realestateinvesting #sandiegorealestate #universityheights #northparkrealestate #sandiegomultifamily #multifamilyproperty #realestatedevelopment #infilldevelopment #sandiegohomes #multifamily #firsttimehomebuyer
Loved volunteering today at the @sdhumanesociety w Loved volunteering today at the @sdhumanesociety walk with @kappelrealtygroup @kristinekappelrealty @marel__! It was a gorgeous day meeting all the cutest pups in San Diego! 🐶🐕🦮🐩🐕‍🦺🐾🦴 #sdhumanesociety #sandiegodogs #sandiegoevents #pointloma #libertystation #sandiegovolunteer
✨JUST SOLD ✨Congratulations to my amazing buye ✨JUST SOLD ✨Congratulations to my amazing buyers @kaekae_janae and @jakevayda!

Jake and Kaelia are quite impressive. They’ve just purchased their first home in San Diego during the most challenging market ever — in their 20s! Over the last few months, we got beat out on 16 offers, but Jake and Kaelia stayed persistent and determined.

When we found this home, we knew it was perfect because one of their primary goals is rental income potential. The home comes with a large detached garage that they plan to convert into an ADU. They are also taking advantage of one of California’s amazing grant programs to help them build their #ADU!

This property will not only generate monthly cash flow, but is also helping them build their wealth and net worth. 💰

Congratulations Jake and Kaelia for making the decision to buy and securing your first home in San Diego! 

Thank you to @willflo7 for helping our clients make their dream come true! And thank you @curtis_westivy_homeinspections for guiding us through a thorough home inspection! 

Sherry Chen
Kappel Realty Group | Compass
DRE 02109149
Equal Fair Housing

Looking for a property with ADU potential? Get in touch with me at 📧Sherry.chen@compass.com

#sherrychenrealty #theaduagent #accessorydwellingunit #sandiegoadu #oakpark #oakparkrealestate #sandiegohomes #justsold #sandiegorealestateinvesting #firsttimehomebuyer #garageconversion
So honored to have met @robreffkin CEO and founder So honored to have met @robreffkin CEO and founder of @compass today at our 4 year anniversary! In my first year of brokerage I sold over $15M in real estate thanks in large part to the incredible technology and network that Compass offers. Thank you Robert for visiting us in San Diego! 

#compass #sandiegocompass #agentsofcompass #kappelrealtygroup #findyourplace #sherrychenrealty #sandiegorealestate
🌟 JUST SOLD! Congratulations to my clients for 🌟 JUST SOLD! Congratulations to my clients for securing this turnkey, beautifully remodeled home in North Clairemont Mesa. ⁠
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My clients are residents of Chicago, but split their time between there and San Diego where they have extended family. They'd been wanting to find a second home in our beautiful city for a long time but didn't know where to start. ⁠
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Additionally, they wanted a home where they could build a large ADU for multigenerational living and provide a home for mom. 👵⁠
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The first step was working with @chadbaker.ccm who crafted the perfect loan for them to be able to finance their second home. After a short underwriting process, we were well positioned to start shopping with NO loan contingency. This really helped us gain a competitive edge and enabled us to stand out against multiple offers. 💪⁠
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When this property came on the market, we were one of the first ones to see it. We moved quickly and were able to secure this deal within 24 hours of viewing the home. Competition was stiff and we even beat out multiple offers that were higher-priced. 🥊⁠
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My buyers could not be happier with their new home where they can bring their family together. This story truly encapsulates my mission as a real estate advisor. The ability to help families find their place together, especially through ADUs, is what I love most about what I do on a daily basis. ⁠
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🏠 Looking for your next home? Contact me at 📧sherry.chen@compass.com.⁠
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Sherry Chen⁠
The ADU Agent⁠
Kappel Realty Group | Compass⁠
DRE 02109149⁠
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#sherrychenrealty #theaduagent #kappelrealtygroup #accessorydwellingunit #adu #sandiegoadu #sandiegorealestate #realestateinvesting #chicagotosandiego #secondhome #multigenerationalliving #aginginplace #grannyflat #casita #clairemontmesa #clairemontmesahomes #clairemontmesarealestate ⁠
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Thank you @redfinrealestate for featuring me on yo Thank you @redfinrealestate for featuring me on your latest article on ADUs! Check out my pro tip by clicking on the link in my bio. ⁠
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Hint: I share how you can identify properties with the potential to build not just one, but MULTIPLE #accessorydwellingunits! 😉⁠
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Looking for a property with ADU potential? Get in touch with me at 📧 sherry.chen@compass.com.⁠
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Sherry Chen⁠
DRE 02109149⁠
Kappel Realty Group | Compass⁠
Equal Fair Housing⁠
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#sherrychenrealty #theaduagent #kappelrealtygroup #redfin #compass #compassrealestate #sandiegorealestate #realestateinvesting #adu #grannyflat #multifamilyrealestate #accessorydwellingunit #casita #sandiegoadu ⁠
JUST SOLD! Congratulations to my buyer for securin JUST SOLD! Congratulations to my buyer for securing this property on the 1st day it hit the market. ⁠
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My client was highly motivated and was ready to move quickly for the right deal. When this property hit the market, we were one of the first to see it and submitted a strong offer right away. ⁠
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By understanding the seller's needs, we were able to strategize an offer that got accepted quickly within 24 hours. ⁠
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This home is conveniently located in Birdland, a pocket of San Diego that's quietly tucked way yet centrally located and accessible to all major freeways. Easy access was key for my buyer. ⁠
⁠
Complete with a beautiful, sparkling pool, my client is excited to have his grandkids over and teach them how to swim in his very own backyard. ⁠
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Crafting the right offer at the right time is key to getting an offer accepted in today's market. It also takes a motivated buyer who can move quickly to get the deal. It's a team effort!⁠
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Ready to buy a home this year? Get in touch with me today and I'll show you the strategies to get your offer accepted in today's market. ⁠
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Sherry Chen⁠
Kappel Realty Group⁠
Compass⁠
DRE 02109149⁠
Equal Fair Housing⁠
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#sherrychenrealty #birdland #serramesa #birdlandsandiego #sandiegorealestate #homebuying #serramesarealestate #lindavista #clairemontmesa #sandiegoealestateinvesting #agentsofcompass #sandiegorealtor #sandiegorealestateagent #sandiegocompass #compasssandiego
⭐ JUST SOLD! Congrats to my Bay Area clients who ⭐ JUST SOLD! Congrats to my Bay Area clients who moved down to San Diego to be closer to family. 👪⁠
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We were able to beat out 16 offers -- without being the highest priced offer. 🙌⁠
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Being communicative, transparent and professional can certainly make or break a deal, especially in today's market. ⁠
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My clients are so excited to call this their home for years to come, where they will start their family. Best of all, they look forward to endless pizza nights as this home comes with a custom-built wood-fired oven! 🍕⁠
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If you're looking to buy a home this year, let's talk. I'll show you the many ways you can compete in today's market without being the highest priced offer. ⁠
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Get in touch with me today at 📧sherry.chen@compass.com ⁠
⁠
Sherry Chen⁠
Kappel Realty Group⁠
@compass⁠
DRE 02109149⁠
Equal Fair Housing⁠
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#sherrychenrealty #theaduagent #eastlake #eastlakegreens #eastlakechulavista #eastlakerealestate #chulavistarealestate #bayareamovingtosandiego #sandiegorealestate
🌟 2021 was my first full year in real estate wh 🌟 2021 was my first full year in real estate where I sold 26 units and over $15M in sales volume. I'm so honored to receive the Gold award from the San Diego Association of Realtors @realtorssd 🏆⁠
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Thank you to all my buyers and sellers this past year for trusting me with purchasing their first home, investment property, and listing their homes for top dollar. ⁠
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I'd especially like to thank my team @kappelrealtygroup for the endless mentorship and support in helping this rookie hit the ground running! 🏃🏽‍♀️
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Cheers to another successful year in 2022! I look forward to continuing to help my clients, future and past, build long-term wealth through real estate. 📈⁠
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If you're thinking of buying or selling real estate this year, reach out for a free consultation. ⁠
⁠
Sherry Chen⁠
Kappel Realty Group⁠
@compass⁠
DRE 02109149⁠
Equal Fair Housing⁠
www.sherrychenrealty.com⁠
sherry.chen@compass.com⁠

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