• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sherry Chen | San Diego Real Estate Agent

San Diego Realtor specializing in ADUs

  • ADU Homes
  • Webinars
  • Resources
    • ADU Regulations
    • ADU Design Ideas
  • Blog
  • About
  • Chinese 中文
  • Contact
You are here: Home / Blog / Buying A House with an Unpermitted Garage Conversion

Sherry Chen / September 8, 2020

Buying A House with an Unpermitted Garage Conversion

What are the risks of buying a house with an unpermitted garage conversion? 

There are plenty of homes on the market that have unpermitted work, particularly – unpermitted garage conversions. These include garages that have been remodeled to include either a bedroom, bathroom, kitchen or all of the above. Oftentimes, the owner may be renting the illegal ADU as well. 

adu-garage-conversion-apartment

The common notion is that buying a property with an unpermitted unit is bad news and that buyers should stay away at all costs. If you’re entertaining the idea of buying such a property, you might be asking yourself questions like:

  • When was the garage converted?
  • Who did the construction?
  • Was the contractor licensed?
  • Will I get in trouble for having an illegal unit?

The good news is, you don’t need to worry. New laws in California have made permitting illegal units much easier than before and many municipalities throughout San Diego are willing to work with homeowners to bring their units up to code.

If you’re open to buying a house with an unpermitted garage conversion, read on to learn more about the state’s amnesty program and the benefits of permitting an ADU. 

Amnesty Program for Unpermitted Units

The passage of Senate Bill 13 introduced new ADU regulations making it easier to build an accessory dwelling unit in California. These new laws include the creation of an amnesty program which eases the process of permitting an unpermitted unit.

The amnesty program prevents local municipalities from penalizing owners of pre-existing, unpermitted units over the next five years, as long as there are no violations of health and safety.

What does this mean? Let’s say you purchase a house with an unpermitted garage conversion. As long as your goal is to permit the unit and bring it up to code, you don’t need to worry about getting charged a penalty for having an illegal unit in the first place.  

The amnesty program is a big incentive for homeowners to bring their illegal units up to code without fear of getting penalized. Unpermitted units are everywhere. Therefore, easing the process to get these units legalized into ADUs will allow more homeowners to provide better and safer housing for renters. 

How to Permit an Illegal Unit

Permitting an unpermitted garage conversion into a legal ADU might be easier than you’d think. When evaluating illegal or unpermitted units, building departments want to make sure that the unit is built to code. If it isn’t, they’ll want to make sure that you will make the necessary changes to bring your illegal unit up to building code standards.

To ensure that the entire process to permit your illegal unit runs smoothly, it’s important to work with a professional who understands the ins and outs of ADUs and who are familiar with local requirements.

According to SnapADU, an expert San Diego ADU builder, here are the main steps to get your illegal unit up to code.

Step 1) Draw up plans

The first step to legalizing your illegal ADU is to hire a draftsman or architect to draw up plans of your existing structure.

Step 2) Submit plans to the city

During the plan check process, various departments will review the plans to ensure compliance. These departments include planning, building and fire.

Depending on how your unpermitted unit was built, the city might want to conduct an inspection. This may involve opening up small sections of walls to check for building code compliance.

Step 3) Address non-compliant issues

This will differ on a case-by-case basis. If the building department discovers issues with your existing structure, you will be required to fix them to bring the structure up to building code requirements.

Step 4) Pay for Permits

Permitting costs will highly depend on the type of unit you have, the square footage, and any other issues you need to address to permit the unit. You can expect permit fees to run from $1,000-$5,000 on average.

Do my tenants have to vacate?

Typically, the process for permitting an illegal unit does not require any existing tenants to vacate the premises. This is only the case if no major structural or layout changes need to be done to your existing unit to bring it up to code.

Once you get you have your permits, you can have peace of mind and enjoy the benefits of having a legal unit on your property.

Why Should I Permit an Unpermitted Garage Conversion?

Sure, there are plenty of homeowners who have unpermitted spaces on their properties. In many cases, these unpermitted spaces can go unnoticed for years. However, it is important to consider the risks associated with illegal units, especially if your goal is to rent out the ADU or increase your property value. 

Renters

If you’re entertaining the idea of buying a house with an unpermitted garage conversion, chances are that you’re looking to rent out the unit. 

Renting an unpermitted residential dwelling is illegal, and your tenant has the right to sue you if anything went wrong inside the unit. These risks include fire, flood, injuries from a fall, earthquake damages, etc.

The prime goal of building code enforcement is the health and safety of the public. By legalizing your unit, not only are you reducing your own liability as a landlord, but you are helping to ensure that your tenants are safe while living on your property. 

Property Value

Any unpermitted work done on a property can not be included in the evaluation of the property. One of the biggest benefits of ADUs is the added value to your property. This is because an ADU can turn your single-family home into a two-unit, income producing property. But in order to take advantage of increased property value, you need to ensure that your ADU is legally permitted. 

Thanks to California’s amnesty program, homeowners should take advantage of this five year window period to take the steps towards legalizing unpermitted ADUs. Doing so, will allow you to ensure the health and safety of your tenants, reduce your liability as a landlord, and enjoy the increase in property value that a legal ADU brings. 

If you’re looking for an ADU-able property, but are unsure where to start — let’s talk. I specialize in identifying the best properties on the market with ADU potential. Whether it’s a home with an unpermitted garage conversion or a property with a large lot for a new detached ADU, I’ll help you identify the perfect property that will fit your goals.

Let’s start your property search

Filed Under: Blog

Sign up for ADU updates!

The ADU Agent Newsletter
Get ADU information, ideas, and San Diego real estate market updates delivered to your inbox.

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Search

Popular

ADU-interior

Top ADU Project Tips – Redfin features Sherry Chen

VA-home-loan-tips

2021 Guide to VA Loans: 7 Tips for California Veterans

Sherry-Chen-interview-with-Krystin-Krebs-Interiors

My Interview with Krystin Krebs Interiors

The ADU Agent Newsletter

Get ADU information, ideas, and San Diego real estate market updates delivered to your inbox.

Footer

The ADU Agent

ADU Homes
Resources
Blog
About
Contact

Privacy Policy
Disclaimer

Sherry Chen, Realtor

Kappel Realty Group

Compass

DRE #02109149

Resources:

ADU Regulations
ADU Designs and Ideas

Recent Blog Posts

  • Top ADU Project Tips – Redfin features Sherry Chen
  • 2021 Guide to VA Loans: 7 Tips for California Veterans
  • My Interview with Krystin Krebs Interiors

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. ⁠
⁠
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! ⁠
⁠
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 💰⁠
⁠
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. ⁠
⁠
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
⁠
⁠
#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. ⁠
⁠
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. ⁠
⁠
Additionally, they wanted a home where they could build a large ADU for multigenerational living and provide a home for mom. 👵⁠
⁠
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. 💪⁠
⁠
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. 🥊⁠
⁠
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. ⁠
⁠
🏠 Looking for your next home? Contact me at 📧sherry.chen@compass.com.⁠
⁠
⁠
Sherry Chen⁠
The ADU Agent⁠
Kappel Realty Group | Compass⁠
DRE 02109149⁠
⁠
#sherrychenrealty #theaduagent #kappelrealtygroup #accessorydwellingunit #adu #sandiegoadu #sandiegorealestate #realestateinvesting #chicagotosandiego #secondhome #multigenerationalliving #aginginplace #grannyflat #casita #clairemontmesa #clairemontmesahomes #clairemontmesarealestate ⁠
⁠
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. ⁠
⁠
Hint: I share how you can identify properties with the potential to build not just one, but MULTIPLE #accessorydwellingunits! 😉⁠
⁠
Looking for a property with ADU potential? Get in touch with me at 📧 sherry.chen@compass.com.⁠
⁠
Sherry Chen⁠
DRE 02109149⁠
Kappel Realty Group | Compass⁠
Equal Fair Housing⁠
⁠
#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. ⁠
⁠
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. ⁠
⁠
By understanding the seller's needs, we were able to strategize an offer that got accepted quickly within 24 hours. ⁠
⁠
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. ⁠
⁠
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!⁠
⁠
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. ⁠
⁠
⁠
Sherry Chen⁠
Kappel Realty Group⁠
Compass⁠
DRE 02109149⁠
Equal Fair Housing⁠
⁠
⁠
#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. 👪⁠
⁠
We were able to beat out 16 offers -- without being the highest priced offer. 🙌⁠
⁠
Being communicative, transparent and professional can certainly make or break a deal, especially in today's market. ⁠
⁠
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! 🍕⁠
⁠
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. ⁠
⁠
Get in touch with me today at 📧sherry.chen@compass.com ⁠
⁠
Sherry Chen⁠
Kappel Realty Group⁠
@compass⁠
DRE 02109149⁠
Equal Fair Housing⁠
⁠
⁠
#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 🏆⁠
⁠
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. ⁠
⁠
I'd especially like to thank my team @kappelrealtygroup for the endless mentorship and support in helping this rookie hit the ground running! 🏃🏽‍♀️
⁠
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. 📈⁠
⁠
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

📷 by: @classiccommercial 
⁠
#theaduagent #sherrychenrealty #sandiegohomes #sandiegorealtor #sdar #agentsofcompass #compasscalifornia #compasssandiego #sandiegorealestate #awardwinningrealtor
Load More... Follow on Instagram

Follow The ADU Agent

Copyright © 2022 · Sherry Chen, The ADU Agent - Find your perfect ADU home.