• 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
Had a blast celebrating with my team @kappelrealty Had a blast celebrating with my team @kappelrealtygroup at the annual San Diego Association of Realtors Circle of Excellence gala! Our team won the coveted Platinum Award for the third year in a row!

🏆 I won the individual Gold Award a second year in a row. As I’m entering my third year in the business, I’m extremely proud of everything I’ve achieved to earn this recognition and being included within the TOP 1% of realtors in San Diego! 💯

Sherry Chen
Kappel Realty Group | Compass
DRE 02109149

#sherrychenrealty #sdar #sandiegorealtor #sandiegorealestateagent #circleofexcellence #award #awardwinning #toprealtor #sandiegorealestate #sandiegocompass #toprealestateteams #topproducer
✨ JUST SOLD ✨ Congratulations to my buyer who ✨ JUST SOLD ✨ Congratulations to my buyer who relocated all the way from #Boston to achieve his dream of one day living in beautiful #SanDiego. ⁠
⁠
We were the first to see the property and submitted an offer right away ahead of the competition. My buyer knew from the moment he stepped into the home, that this modern home was exactly what he wanted. Therefore, we came in strong with an attractive offer that met all of the sellers' needs to make this as smooth of a transaction as possible. ⁠
⁠
This gorgeous luxury townhome is located in a prime area of #Hillcrest is the perfect home base for my client to start his new chapter living on the sunny West Coast ☀️ My favorite part about this home is the roof top deck, the perfect place to unwind and enjoy the views and gorgeous San Diego sunset. 🌇⁠
⁠
Sherry Chen⁠
Kappel Realty Group | Compass⁠
DRE 02109149⁠
⁠
#sherrychenrealty #hillcresthomes #hillcrestrealestate #sandiegohomes #sandiegoluxuryhomes #luxurytownhome #bostontosandiego #sandiegocompass #sandiegorealestate #hillcrestsandiego
✨ JUST SOLD! ✨ Congratulations to my happy buy ✨ JUST SOLD! ✨ Congratulations to my happy buyers on the purchase of their first home in beautiful #ChulaVista. ⁠
⁠
My clients are residents of Los Angeles and decided to move back to San Diego to be closer to family, along with their 1 year old son. This home is the perfect place for them to start their new chapter with their family. ⁠
⁠
We were able to compete in this hot market 🔥 thanks to the help of @jale_yourloangirl_ with #CrossCountryMortgage! With a quick 15 day close and clean terms, we secured this beautiful home under contract. Within 2 short weeks, my buyers went from being renters to proud homeowners! 🏡⁠
⁠
One of the challenges I face daily is dispelling misinformation in the news and headlines. While the rest of the nation may be seeing slower markets due to rising interest rates and inflation, there is still an overwhleming amount of buyer demand in San Diego. The #SanDiegoRealEstateMarket is still hot due to historically low levels of inventory. ⁠
⁠
The key to securing a home today in this market is to work with a team who will do whatever it takes to GET 👏  IT 👏  DONE from the offer stage all the way to closing. ⁠
⁠
Sherry Chen⁠
Kappel Realty Group | Compass⁠
DRE 02109149⁠
Equal Fair Housing⁠
⁠
#sherrychenrealty #eastlakerealestate #eastlakehomes #otayranch #otayranchhomes #firsttimehomebuyer #movingfromlatosd #relocationrealestate #relocation #losangelestosandiego #buyingahome #southbaysandiego⁠
⁠
🚨 New video! 🚨 Check out my first ADU tour w 🚨 New video! 🚨 Check out my first ADU tour with @snap.adu who recently completed a gorgeous #accessorydwellingunit for my client! 

My client purchased a duplex in the Linda Vista neighborhood of #SanDiego last year during one of the most competitive times to buy. Since purchasing his duplex, his investment has CASHFLOWED stronger than he could ever imagine. 

To increase his investment even more, he partnered with SnapADU to build this stunning 2BD/1BA unit in the backyard of his duplex. 

Check out the full video tour and learn all about the DEAL STORY on YouTube. Link in bio! 

Sherry Chen
@kappelrealtygroup | Compass
DRE 02109149 

Contact me at:
Sherry.chen@compass.com
Www.sherrychenrealty.com

#sherrychenrealty #theaduagent #snapadu #compassrealestate #sandiegocompass #sandiegoinvestmentproperty #realestateinvesting #multifamily #sandiegoadu #adu #lindavistahomes #sandiegomultifamily #kappelrealtygroup
JUST SOLD! Congratulations to my buyers for purcha JUST SOLD! Congratulations to my buyers for purchasing their first home near beautiful Rolando Village! This stunning home is turnkey and even has an attached #AccessoryDwellingUnit. My buyers are excited to generate strong rental income from the #ADU to substantially reduce their monthly mortgage payment, the ultimate #househack! I couldn’t be happier for my #firsttimehomebuyers for closing on this incredible property. 

Sherry Chen
Kappel Realty Group | Compass
DRE 02109149

#sandiegorealtor #sandiegorealestate #rolandovillage #realestateinvesting #sandiegoliving #sandiegohomes #housetour #hometour #sandiegohometour
🚨Checkout my podcast episode with @thewhatsnext 🚨Checkout my podcast episode with @thewhatsnextpod! I sit down with Levi Quesada and Tony Hernandez with @new.venture.escrow to chat about ADUs, real estate, technology and LIFE! 

Learn how I got started in the business, my advice for new agents, and how I’ve had over 14 jobs in my adult life 😆 

I also tell the story of how my parents immigrated to America from Taiwan 🇹🇼 and started their own business from day 1, which has always inspired me to become my own boss since I was young. 

Now sit down and join me with your favorite glass of wine, and click on the link in bio to watch the full interview!🥂 

Youtube:
https://www.youtube.com/watch?v=nNpkzSKQoTw

Spotify:
https://open.spotify.com/episode/5MwewjnCPlS9gA76bFZxTg

Sherry Chen
Kappel Realty Group | Compass
DRE 02109149

#sherrychenrealty #podcast #realestatepodcast #newventureescrow #sandiegorealtor
NEW ESCROW! Can you imagine yourself relaxing on t NEW ESCROW! Can you imagine yourself relaxing on this gorgeous rooftop deck enjoying the beautiful San Diego sunset? 🌅 Congrats to my buyer for getting his offer accepted on this beautiful luxury property in the heart of #Hillcrest.

Sherry Chen
Kappel Realty Group | Compass
DRE 02109149

#sherrychenrealty #sandiegocompass #sandiego #luxuryliving #sandiegohomes #hillcrestestate #hillcrestsandiego
Honored to be part of @KappelRealtyGroup, named on Honored to be part of @KappelRealtyGroup, named one of the top teams in San Diego by the San Diego Business Journal @sdbusinessjournal! ⁠
⁠
Thank you to each and every one of my clients for your trust in working with me and for your continued support and referrals. I am incredibly grateful for the opportunity to change lives through real estate!⁠
⁠
Sherry Chen ⁠
Kappel Realty Group⁠
@Compass⁠
DRE 02109149⁠
⁠
#sherrychenrealty #awardwinningagent #topagent #toprealtor #sandiegorealtor #sandiegorealestateagent #sandiegocompass
Here’s a sneak peak behind-the-scenes look at my Here’s a sneak peak behind-the-scenes look at my new video coming up with @snap.adu! I walk through one of my best client deal stories. Learn all about how to add an Accessory Dwelling Unit to a #multifamily property in #SanDiego!

Sherry Chen
@KappelRealtyGroup
@Compass
DRE 02109149
 
#accessorydwellingunit #adu #sandiegoadu #sandiegoaccessorydwellingunit #multifamilyinvesting #duplex #lindavista #sandiegorealestate #realestateinvestor #valueadd #sandiegocompass
Load More... Follow on Instagram

Follow The ADU Agent

Copyright © 2023 · Sherry Chen, The ADU Agent - Find your perfect ADU home.