What’s an ADU? 

An ADU, short for accessory dwelling unit, is an additional unit attached or adjacent to an existing single-family home. Historically, big cities across the United States and North America have been reluctant to allow these housing developments and had not budged on zoning laws that restrict the number of units allowed on one property. However, with housing becoming more expensive and harder to find, these cities have started to revise the laws in order to allow existing residents an opportunity to turn their unused space into extra income and to combat the housing shortages in their communities. Therefore, ADUs are becomes increasingly popular, especially in metropolitan areas like the San Francisco Bay Area and Los Angeles. Just like their larger counterparts, ADUs are required to have designated areas or space for cooking, sleeping, and bathing. However, the total square footage may not exceed 75% of the existing dwelling’s square footage. This may seem like a relatively simple concept, but the different types of ADUs and the zoning laws that vary from city to city make it much more complex.

First, let’s talk a little about what makes a property an ADU and what needs to be featured in that ADU to make it livable for tenants. As far as the inside of an ADU goes, there are several variables that change depending on the city or town and the location of an ADU. For example, many cities including Berkeley require secondary units to have their own gas and water meters in order to be legally rented on sites such as AirBnb or VRBO. As we touched on before, each ADU must be a livable space with designated areas for cooking, sleeping, and bathing. This means that your finished basement with a mattress, mini fridge, and half bathroom is not considered an ADU and cannot be registered as such.