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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

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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. ⁠
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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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