Why Now is the Time to Build an In-Law Unit
San Francisco ADU/art studio designed by Craig.
“A lot of people are coming to me, saying they know they need to do this right now. With the effect of COVID-19, the economic situation has taken a turn for many people and they’re realizing that creating an ADU on their property would bring many benefits,” says Craig.
The economy is changing, retirement for many is looking questionable, and during these times, people are searching for a simple way to make extra income, or add value to their homes.
“Every dollar you spend on your home is usually two or three times that value when it comes time to sell,” says Craig.
And, with the COVID-19 pandemic, a large majority working from home, job losses and a shifting economy, the small house movement, more than ever, is on a fast-track trajectory.
ADU’s (Accessory Dwelling Units), also known as in-law units, or granny flats, are rapidly growing in popularity, primarily in the San Francisco Bay Area. Homeowners might need help with their mortgages or want to have a separate place for visiting family to stay or even longer-term living quarters for aging parents.
Pool house design in Novato, CA.
1,000 square-foot ADU pool house unit Craig designed/built in Novato, CA.
“A lot of people are coming to me, saying they know they need to do this right now. With the effect of COVID-19, the economic situation has taken a turn for many people and they’re realizing that creating an ADU on their property would bring many benefits,” says Craig.
Why Build an ADU - Now?
Enjoy passive income to supplement your mortgage payments
Add immense value to your home
Create available space for family to stay during visits
Give aging parents who need care a separate, private unit that is accessible
Design a beautiful sanctuary that can be an office, art studio and/or exercise equipment space
Have an extra living space available if you want to rent out your main house down the road
As opposed to a remodel to your main home, the construction of an ADU is self-contained so you don’t have to move out while it's being built and it can usually be completed fairly quickly
Upper Market/Castro ADU design. Craig took an existing office, staircase, and laundry room and combined them into the unit - (620 square feet)
“Right now I’m getting a lot of phone calls about ADUs. A new and fun project is converting a detached garage into a comfortable and functional apartment for a couple in San Mateo. They have a college age kid and need a place for them to stay and are also anticipating renting it out for supplemental income in the future.”
After living in many very small apartments and a loft in San Francisco, Craig has been inspired to design small, stylish and functional spaces. In fact, one of the first projects he took on after moving into his new home in West Marin four years ago was designing and building a 400-square-foot detached office underneath an existing carport.
“I’ve been even more grateful for this home studio space during the quarantine with the whole family home all the time. It has allowed me the privacy and quietude to be creative and meet with clients and my team on Zoom. I also love that I can really crank up my music in there when I spin records at the end of each day. And one day when Jess and I are retired empty-nesters, it will be nice to have the option of living in the studio and renting out our main house.”
In addition to the option of designing and building a brand new ADU from the ground up, common structures that can be transformed into these functional living spaces include detached garages, backyard sheds, basements and storage spaces. Styles can vary, from lofts for 20-somethings to one-level flats for aging adults. And, just as with any renovation, there is a lot to consider when building an ADU:
“There are certain regulations, for example, the ceilings need to be at least 6 feet tall, there needs to be natural light, and a path to the street,” says Craig. “I’ve seen low ceilings, not great air circulation and spaces with no natural light, almost like a cave -- and this becomes a health and safety issue. An option for basement level units is to dig down to allow for a proper ceiling height and adding windows and exits,” says Craig.
In San Francisco especially, while ADUs are allowed and even encouraged due to the lack of affordable housing, there are many rules and regulations surrounding building them, so it’s essential to work with a professional.
“When you do it yourself and don’t legalize it, the electrical can go wrong (a fire hazard) and you have to think about plumbing, just like with any remodel. Un-permitted work is a huge headache if you want to resell your house or do a future remodel. I’ve had people ask me about throwing up prefab units, but again, you run into the same issues. In all cases, you should work with an architect to ensure the ADU is properly permitted, well-placed, safe, functional, comfortable and aesthetically pleasing.”
Where to begin
“It’s important to have a sense of what you can spend,” says Craig. “This includes hard construction costs including the labor and materials and soft costs such as permit fees, an architect, a structural engineer, etc. Chatting with a professional architect will help assess unit costs.”
And although the permitting process can seem discouraging, due to recent events (COVID-19/economic shifts), permit fees for these types of projects are going down, mortgage rates have been reduced (allowing for HELOCS that can fund construction) , and many building departments are moving ADUs higher up on the list as an essential project. Plus, ADUs can provide affordable housing. California specifically has always been faced with providing enough affordable housing for our large population.
Less is More
And because these units are typically around 500 sq. feet or so, homeowners are opting for a clean, modern design, and steering away from trim or any busyness to keep the small space as “spacious” and efficient as possible.
Due to the pandemic, many tech companies are going 100% virtual. “We’re going to see a movement for home office builds,” says Craig. So creating an ADU can have multi-uses: apartment, guest home, exercise room and home office.
If you are thinking about building a beautiful ADU, schedule your free consultation with Craig O’Connell by emailing info@craig-oconnell.com.
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