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

Sherry Chen | San Diego Real Estate Agent

San Diego Realtor and ADU Expert

  • ADU Homes
  • Resources
    • ADU Regulations
    • ADU Design Ideas
  • Blog
  • About
  • Contact
You are here: Home / Blog / What is an ADU? Your San Diego ADU Guide

Sherry Chen / August 3, 2020

What is an ADU? Your San Diego ADU Guide

What is an ADU?

The term ADU stands for accessory dwelling unit. ADUs are accessory dwellings that share the lot of a primary dwelling.

So why are ADUs such a big deal these days? In 2017, the state of California passed legislation that made it easier for homeowners to build ADUs on their property. These laws were passed in order to help address the severe housing crisis we are currently experiencing in the state. The hope is that as more and more ADUs are built, more affordable housing can become available.

Modern-ADU-backyard

Benefits of ADUs

From generating passive rental income, to providing a private space for family and friends to stay in, there are plenty of benefits to ADUs.

1. Earn rental income

Wouldn’t you like to offset the cost of your mortgage on a monthly basis? Renting out a granny flat or ADU on your property is a great way to offset the high cost of home ownership here in California. With rental rates being at a premium in San Diego, ADUs are a smart way to earn both passive income in the short-term as well as gained property value in the long term.

Aging-in-place-adu

2. Keep aging family close

As our family members age, such as our parents, we need to make some hard decisions. Can we trust that they will be safe living independently? With the ever-rising costs of nursing homes and assisted living communities, it can be a real challenge to ensure that our family members will be safe and taken care of.

An ADU allows you to have the flexibility to keep our aging parents close by, yet allow both them and you to still retain independence and privacy. When designing an ADU for a senior family member, it’s highly recommended to consider universal design.

What’s universal design?

Universal design consists of residential design standards to allow for the accommodation of handicap or disabled persons. Elements of universal design include ensuring that doorways are wide enough for a wheelchair or walker to easily go through. Another example includes ensuring that there are no raised thresholds on the floor, such as moldings or steps, which make it difficult for someone to maneuver over in a wheelchair or walker.

Universal design standards will help to create a safer place for your loved ones, and offer you peace of mind.

3. Provide extra space for guests

An ADU is also a great way to provide a separate space for friends and family members that visit. Are the in-laws coming into town for the holidays? What better than to offer them their own separate and independent unit? With Airbnb and hotel prices in San Diego being offered at a premium, it’s a cost-effective way to keep family and friends close-by.

4. Increase your property’s value

By turning your single-family home into a multifamily property, you are able to increase the value of your investment. With the addition of an income-generating unit, your property will become highly desirable when it comes time to sell.

Can I Build an ADU on my property in San Diego?

If you own a single-family home, then there is a high probability that you can build an ADU on your property. San Diego is one of the most ADU-friendly areas in California. The City of San Diego was actually one of the front runners to come out with ADU regulations. Furthermore, there are local municipalities throughout the area that offer beneficial exemptions for ADUs. For example, the City of San Diego has waived all development impact fees for ADUs saving homeowners tens of thousands of dollars.

Here are a few ADU-friendly municipalities in San Diego:

  • City of San Diego
  • County of San Diego
  • La Mesa
  • Poway
  • Chula Vista
  • Carlsbad
  • Encinitas
  • Vista
  • San Marcos

How to Build an ADU in San Diego

There are several ways to go about adding an ADU to your property. It all depends on what your goals are for the unit, characteristics of your lot, and your budget.

Looking for an ADU-able property? Let’s talk.

Here are the three basic steps for building an ADU in San Diego:

Step 1) Design

Designing a unit that’s been customized to fit your property is a great way to go. When building a custom ADU, it’s important to work with a designer with ADU experience. They’ll know exactly how to design for small spaces, and will be in-tune with local ADU laws and regulations.

Step 2) Permit

Once you have a full set of plans, it’s time to submit them to the city building department for building permits. As of 2020, California state law mandated that local jurisdictions must act on ADU applications within 60 days. This change has helped to reduce one of the biggest bottlenecks when it comes to building ADUs, since city building departments used to have up to 120 days to process an application.

There may be changes that need to be made to your plans throughout the permit review process. Therefore, it is critical that you work with a designer who has experience and is able to implement changes quickly so that you can get your permits processed as soon as possible.

Step 3) Build

After 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.

To learn more, check out our guide on how to build an ADU in San Diego.

Types of ADUs

There are a few different types of ADUs that can be added to your property including:

  • Garage Conversion
  • Above garage
  • Detached
  • Prefabricated or Modular
  • Attached
  • Junior ADU(JADU)

The type of ADU you should go with will depend on your goals and any zoning requirements you’ll have to adhere to according to the city your property is located in. Garage conversions are one of the easiest ways to add an ADU to your property, since the structure already exists. Furthermore, new state laws have made it easier for homeowners to convert their garages to ADUs by offering exemptions including parking, solar, and more.To learn more, check out my guide on ADU garage conversions.

How Much Does it Cost to Build an ADU in San Diego?

The cost of your ADU will depend on a variety of factors such as:

  • Design
  • Size
  • Permit Fees
  • Type of ADU

As mentioned earlier, a garage conversion is oftentimes the most cost-effective route for an ADU. On the other hand, a newly-built detached ADU will be a bit more expensive. Therefore, your budget will be a main factor in determining the type of ADU that you go with.

Development Impact fees are one of the most costly types of permit fees. As of 2020, development impact fees for units below 750 sq ft have been waived throughout the state of California. This new law has helped homeowners save tens of thousands of dollars just on permit fees alone, making it a great time to build your ADU.

In San Diego, you can expect construction costs alone to fall around $200-$250 per square foot for newly-built, ground-up units. When evaluating the cost of your ADU, it’s important to remember that ADUs are much smaller than an average home. Therefore, the smaller the unit, the more expensive the per square footage price may seem. This is because within a smaller unit, there are no large living spaces to offset the costs of bathrooms and kitchens which are the most expensive areas in a living space.

Remember that one of the greatest benefits of ADUs is the ability to add value to your property. It’s a decision that will allow you to build wealth over time, and may be well worth the investment in the short-term.

Prefab-ADU
Abodu.com

What about Prefab ADUs?

Prefabricated ADU units are also a great way to add an ADU to your property. From modern to cottage style designs, there are a wide variety of prefabricated units available today.

One of the biggest advantages of prefab ADUs is that the construction of the unit occurs off-site at a manufacturing facility. This way, you don’t need to have a construction team actively working on your property for months, saving you time.

Not every property eligible for prefabricated ADUs, and there are a few factors to keep in mind. So it’s best to speak with a prefab ADU manufacturer to make sure it’s the right fit for your property.

San Diego Pre-Approved ADU Plans

To help bolster the growth of ADUs, both the county of San Diego and City of Encinitas have released pre-approved ADU plans that are permit-ready.

Sizes range from 600 sq ft to 1,200 sq ft, and come in a variety of distinct designs. If you’re interested in using one of these plans, it’s important to note that these plans are technically only “pre-approved” if your property falls within the jurisdiction of County of San Diego or the City of Encinitas.

To see if these templated plans are right for you, check out the links below:

  • San Diego County Standard ADU Building Plans
  • City of Encinitas Permit-Ready ADUs

What is a Junior ADU?

Junior ADUs are units that are contained entirely within the primary home and are converted from an existing bedroom. In many areas, there is the potential to have both an ADU and a JADU on the same lot.

Here are the requirements that a JADU must have:

  • Separate entrance/exit
  • Less than 500 sq ft
  • Wet bar or kitchenette (not a full kitchen)
  • Bathroom (may be shared with the main house)
  • Deed Restriction

What is the deed restriction?

Although owner-occupancy requirements have been waived until 2025, this exemption only applies to ADUs – not JADUs. Therefore, the addition of a JADU will require owner occupancy on the property. Depending on your long-term goals, a JADU may or may not be the right fit.

For example, if your long-term goal is to house an aging parent in your home and you have a smaller budget to work with, a JADU may be the answer.

If your goal is to offer the ADU as a rental and also eventually rent out your primary home, a detached ADU or garage conversion may be your best option.

Neil Kelly

Looking for an ADU-able property to call yours?

As San Diego’s ADU Agent, I can help you locate the best property to help you achieve your ADU goals. From zoning requirements to assessing market conditions, there is a lot to consider when shopping for the perfect ADU-able property. Work with me and I’ll help take the guesswork out of your property search.

From first-time home buyers to veteran investors, it seems that everyone is on the hunt for best properties to invest in. With my experience in helping hundreds of homeowners navigate the ins-and-outs of ADUs throughout San Diego, I can help you find your next ADU-able property quickly and efficiently.

What are you waiting for?

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 Expert
⭐️ C.A.R. Rising Star Award 2022
🏆 SDAR Gold Award ‘21 ‘22
🎓 UCLA Alum
DRE 02109149
Kappel Realty Group

Sherry Chen
New feature on @nerdwallet! The biggest issue curr New feature on @nerdwallet! The biggest issue currently impacting the real estate market is LOW INVENTORY.⁠
⁠
Unfortunately, rising interest rates have not only made it harder for buyers, but also even harder for homeowners to sell! This is because the large majority of homeowners currently have an interest rate of less than 5%. With today's interest rates ranging between 7-7.5%, it becomes a challenge for homeowners wanting to sell due to the rising cost of buying their next home. ⁠
⁠
Since interest rates are likely not coming down soon, Nerd Wallet's Holden Lewis shares a few creative ideas on how homeowners can become incentivized to sell their homes today. Tap the link in bio to read more!⁠
⁠
Sherry Chen ⁠
DRE 02109149⁠
Kappel Realty Group | Compass⁠
Equal Fair Housing⁠
⁠
#sherrychenrealty #realestatemarket #homebuying #realestatemarketstats #realestatetips #housingmarket
💹💰Stocks vs. Real Estate 🏡💼 How is w 💹💰Stocks vs. Real Estate 🏡💼 

How is wealth built through real estate? The answer is LEVERAGE. 

Leverage in real estate can be a powerful wealth-building strategy because it allows you to control a more substantial asset with a relatively smaller amount of your own money. Here’s how it works:

1️⃣ Leveraging Other People’s Money (OPM): When you use leverage in real estate, you typically secure a mortgage or a loan to purchase a property. This means you’re using the lender’s money (OPM) to finance a significant portion of the property’s purchase price.

2️⃣ Magnified Returns: Let’s say you buy a $1,000,000 property with a 10% down payment ($100,000) and finance the rest with a mortgage ($900,000). If the property appreciates by 5%, your actual return isn’t just 5% on your $100,000 investment; it’s 5% of the full property value of $1,000,000. This equates to a return of $50,000 vs just $5,000!

In fact, San Diego real estate prices have appreciated on average of 8% year over year over the last 35 years, compared to the national average of 4% — making #SanDiego one of the highest appreciating markets to invest in. 

3️⃣ Cash Flow: Leverage can also enhance your cash flow. Rising rents in San Diego makes it easier to cashflow over time while your 30 year fixed mortgage stays the same despite rising real estate prices. 

Let’s keep the discussion going! What’s your take on this topic? Share your thoughts below. 👇 

Sherry Chen
Kappel Realty Group | Compass
DRE 02109149
sherry.chen@compass.com
 
Thank you @lquesada4 and @new.venture.escrow for your video magic! 🎥🙏

#RealEstateVsStocks #InvestmentDilemma #FinancialWisdom #sandiegorealtor #realestateinvestingtips #realestateinvesting #realestateinvesting101
The La Mesa Car Show happens every Thursday throug The La Mesa Car Show happens every Thursday throughout the summer in beautiful Downtown La Mesa Village. We had a blast checking out the beautiful vintage cars and saw some rare beauties like the Shelby GT and ‘66 Stingray 🔥 Then we topped off the night with a #happyhour cocktail at @casagabriela_lamesa 🥂 I love living in La Mesa where we have amazing events like this that bring the community together ❤️

#lamesavillage #lamesacarshow #lamesa #downtownlamesa #lamesahappenings #lamesasandiego #ilovelamesa #lamesacalifornia
JUST SOLD! Congratulations to my buyer who receive JUST SOLD! Congratulations to my buyer who received $40,000 from the City of San Diego to purchase her first home in Serra Mesa!⁠
⁠
Yes, you read that right. My buyer received tens of thousands of dollars from the San Diego Housing Commission's BIPOC First-Time Homebuyer Program. The median price of a home in San Diego now over a record-breaking $1M. Due to the rising costs of home ownership, @thesdhc offers numerous #downpaymentassistance programs for #firsttimehomebuyers. Thanks to programs like this, homeownership can become a reality for so many homebuyers in San Diego. ⁠
⁠
My client is so excited to stop paying her landlord rent every month, and start building equity to build her longterm wealth. While she was nervous to purchase her first home in this hot market, she took the first step by reaching to me and getting preapproved for a loan. ⁠
⁠
Due to my client's strong determination to purchase her first home, she stayed motivated through the entire #homebuying process from the preapproval process to closing. We hit a few challenges throughout escrow, but she stayed in the game and today she is the proud owner of a highly-coveted condo, centrally located in San Diego. ⁠
⁠
There are many programs just like this that can help first time homebuyers with their down payment with annual income limits up to $150K+! If you'd like to see if you're eligible for down payment assistance to purchase your first home, reach out to me today at sherry.chen@compass.com. ⁠
⁠
⁠
Sherry Chen ⁠
Kappel Realty Group | Compass⁠
DRE 02109149⁠
Equal Fair Housing⁠
⁠
#sherrychenrealty #serramesa #serramesarealestate #serramesahomes #sandiegocondo #sandiegoproperties #buyingacondo #sandiegorealtor #sandiegorealestatagent #sandiegohousingcommission #firsttimehomebuyergrant #sdhc
JUST SOLD! Congratulations to my buyer for closing JUST SOLD! Congratulations to my buyer for closing on this one of a kind condo in one of the most exclusive communities in Carlsbad. ⁠
⁠
From day one, my buyer was motivated to one day purchase a home in the Kensington At The Square community located in Bressi Ranch, Carlsbad. When this unique condo came up for sale back in April, we were one of the first to view it. Due to unforeseen circumstances, the seller had to pull it off the market. I still stayed in touch with the listing agent, so when the property came up for sale again 3 months later, we were able to move forward with an offer right away! ⁠
⁠
During this three month period, my buyer's financial situation changed considerably. Luckily, @jale_yourloangirl_ was able to strategize the best loan structure for our client and help ensure we had a smooth closing. ✅⁠
⁠
Condos rarely come up for sale in this uber-exclusive community, and the seller ended up receiving multiple offers well above asking price. We were able to get our offer accepted at list price, the lowest of all offers, due to the rapport I'd built with the agent over the last several months, and due to our impressive quick timelines. ⁠
⁠
My buyer's dreams came true when we were able to close within a quick 15 day period! 🏠️ ⁠
⁠
I'm so proud of my client for purchasing this home all on her own as a single mom. It's the perfect place to raise her daughter and enjoy her new life chapter! ⁠
⁠
⁠
Sherry Chen⁠
Kappel Realty Group | Compass⁠
DRE 02109149⁠
Equal Housing Opportunity⁠
⁠
#sherrychenrealty #bressiranch #carlsbadrealestate #kensingtonatthesquare #justsold #sandiegorealestate #carlsbadcondo #carlsbadhomes #bressiranchhomes #bressiranchrealestate
IN ESCROW on this gorgeous, turnkey stunner minute IN ESCROW on this gorgeous, turnkey stunner minutes from downtown La Mesa Village. 🌞

In this hot market, having the right team working on your side is key to getting you the home of your dreams. We wrote an offer with competitive, tight timelines and we won the deal despite being the lowest-priced offer. Given our tight timeline, we needed to schedule our home inspection ASAP. ⏰

Thanks to Curtis @westivy_homeinspection, we were able get this done within 24 hours of contract acceptance, giving my client peace of mind that he can move forward with a solid home. Teamwork makes the dream work! 🙌

#sherrychenrealty #lamesahomes #lamesarealestate #lamesarealtor #lamesavillage #homeremodel #homeinspection #sandiegohomeinspection #turnkeyproperties #homebuyer #sandiegohomebuyer
JUST SOLD! Luxury townhome in the trendy Voltaire JUST SOLD! Luxury townhome in the trendy Voltaire neighborhood of #PointLoma. ⁠
⁠
Congratulations to my buyers on purchasing their first home! My clients initially moved from San Francisco to San Diego over a year ago. After officially falling in love with SD, they decided to take the plunge and purchase their first home and plant their roots in beautiful Point Loma. 🏖️⁠
⁠
With the Midway Development Project under development nearby, as well as million dollar townhomes currently under construction across the street, my clients' investment is guaranteed to grow year over year in strong appreciation. 📈⁠
⁠
During the escrow process, we experienced a few bumps in the road and had to switch lenders to get the job done. Luckily, @jale_yourloangirl was able to save the day and take us to finish line! 🙌⁠
⁠
Working with the right team is one of the most important aspects of the #homebuying process, and I'm so glad that my buyers were able to successfully close on their new home. 🥂⁠
⁠
Sherry Chen ⁠
Kappel Realty Group | Compass⁠
DRE 02109149⁠
⁠
#sherrychenrealty #sanfranciscotosandiego #pointlomarealestate #pointlomahomes #voltairepointloma #coastalhomes #luxurytownhome #coastaltownhome #sandiegotownhome #uppervoltaire⁠
⁠
JUST SOLD! Congratulations to my #firsttimehomebuy JUST SOLD! Congratulations to my #firsttimehomebuyers on the purchase of this charming La Mesa bungalow, complete with a detached garage perfect for an ADU conversion! 🏡⁠
⁠
We beat multiple offers, despite initially being the lowest priced offer. Our offer stood out due to our very strong offer terms including a quick 15 day close, and 7 day contingencies across the board. Shoutout to our lender @jale_yourloangirl_ for always performing on the quick timelines we need to compete in this hot market 🔥⁠
⁠
My clients plan to convert the spacious detached garage into an #AccessoryDwellingUnit to earn rental income and offset their mortgage payment significantly. 💲⁠
⁠
Despite rising interest rates, my buyers made the smart decision to take the plunge and buy their home NOW versus waiting until rates drop when competition will be even fiercer and home prices even higher. ✅ ⁠
⁠
Thank you to my incredible clients for trusting me every step along the way throughout this very quick escrow.  I could not be happier for my buyers on purchasing this amazing, turnkey home in beautiful #LaMesa!⁠
⁠
Sherry Chen⁠
Kappel Realty Group | Compass⁠
DRE #02109149⁠
Equal Fair Housing⁠
⁠
#sherrychenrealty #theaduagent #homebuying #lamesahomes #lamesarealestate #sandiegorealestate #adugarageconversion #sandiegoadu #lamesahome #lamesarealtor #lamesarealestateagent
One of my favorite things to do in San Diego is to One of my favorite things to do in San Diego is to visit our amazing farmers markets! The Hillcrest farmers market is one of my favorites and it’s held every Sunday rain or shine. 

I love to cook 👩‍🍳 which is why I go to the farmers market to find the freshest produce available that’s in-season, straight from local growers. 🥦🥬🥒🥕🌽 

I also love to stop by @wipeoutcoffee for their smooth cold brew coffee ☕️ and grab my favorite healthy Seedy Bread from local bread maker, Honeymoon Homestead 🍞Plus no trip to the @hillcrestfarmersmkt is complete without grabbing a plate of spicy Jerk Chicken with greens and coconut lentils from @flavorsofeastafrica🔥🍗

Now that it’s officially summer, go out to enjoy the sunshine and visit your local farmers market this weekend! 🌞

#hillcrestfarmersmarket #hillcrest #sandiegofarmersmarket #localfarms #eatlocal #normalheights #universityheights #thingstodoinsandiego #localfarmersmarket
Load More... Follow on Instagram

Follow The ADU Agent

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