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Straight Answers to the Questions That Matter

Everything homeowners, investors, and property managers ask us before starting an ADU project. No marketing spin — just the details you need to make an informed decision.

Getting Started

6 questions
What exactly is an ADU, and how is it different from a guest house?

An Accessory Dwelling Unit (ADU) is a fully independent secondary residence on the same lot as a primary home. To qualify as an ADU under California law, it must have its own kitchen, bathroom, sleeping area, and separate entrance. A guest house, by contrast, usually lacks one or more of those — often no kitchen or no full bath.

That distinction matters legally and financially. A permitted ADU can be rented as a standalone unit, is counted separately by appraisers, and can be financed with a construction loan. A guest house cannot do any of those things.

How do I know if my property can support an ADU?

Several things determine eligibility: lot size, zoning designation, setback requirements, lot coverage limits, and utility connection capacity. On almost every residential lot in California, some form of ADU is now allowed by state law — the question is which type.

We run a free feasibility study for every property we consider. Send us the address and we will pull zoning records, check your setbacks, and tell you in writing what your lot can support and what the realistic options are — usually within five business days.

Which ADU type is right for my property?

It depends on your goals and the constraints of your lot. Detached ADUs offer the most rental value and design freedom but cost the most. Attached ADUs save money by reusing your home's roofline and foundation. Garage conversions are the most affordable entry point. Above-garage ADUs make sense on narrow lots. Junior ADUs are ideal when you already have unused interior space.

See our Services page for a full comparison, or request a feasibility report and we will recommend the best option for your specific property.

What is the very first step I should take?

Request a feasibility assessment. It costs nothing and it will tell you three things: (1) whether your property can support an ADU, (2) which ADU types are permitted under your jurisdiction's rules, and (3) a realistic construction cost range for each option.

Do not order architectural drawings before feasibility. We regularly see homeowners spend $8,000–$15,000 on plans for a unit their city will not permit — a mistake that takes thirty seconds to prevent.

Do I need to own my home outright, or can I still build with a mortgage?

You do not need to own your home outright. What matters is having enough equity to satisfy your lender and enough income to qualify for the financing you choose. Most of our clients use either a HELOC, a cash-out refinance, or a dedicated ADU construction loan.

See our Financing page for a breakdown of the options most commonly used in California.

How long does the entire process take from first call to move-in?

Plan on three to fourteen months total, depending on the ADU type. Garage conversions typically finish in 5–7 months. Attached units in 6–9 months. Detached units in 9–14 months. The largest single variable is permit review time, which ranges from 30 days in some cities to 5 months in others.

Our Process page breaks down each phase with realistic timelines based on our recent projects.

Permits & Zoning

7 questions
Do I really need a permit for an ADU?

Yes. An unpermitted ADU is not legally habitable space, cannot be rented on the open market, cannot be financed, and can create serious problems when you sell or refinance your property — including forced demolition by the city and disclosure liabilities.

Every ADU we build is fully permitted and passes final inspection before we hand over keys.

How long does permit approval usually take?

It varies widely by jurisdiction. Smaller cities and unincorporated county areas often issue permits in 30–45 days. Larger metros like San Francisco, Los Angeles, and San Jose typically take 60–120 days. Complex cases — a commercial conversion, a hillside lot, or a property in a historic district — can extend to 150 days or more.

We publish realistic permit timelines for your jurisdiction in the feasibility report, and we track them throughout the submission process.

Do you handle the entire permit process, or do I need to be involved?

We handle all of it. We prepare the permit package, submit it to the jurisdiction, respond to every plan-check comment, coordinate with utility companies, and schedule every inspection. You sign the authorization forms and pay the jurisdictional fees directly, but you do not have to stand in line at the planning counter.

If your jurisdiction requires the property owner to attend a public hearing, we prepare you with talking points and attend the hearing alongside you.

What if my city rejects the permit?

Permit rejections are almost always about corrections, not outright denials. A plan checker might ask for a revised setback calculation, a structural detail, or additional energy documentation. These are normal, and we handle them in-house as part of our service.

If a jurisdiction denies a permit altogether — which is rare now that California law strongly favors ADUs — we review the denial, advise you on options (revision, variance, or appeal), and proceed at no additional design cost for the first revision.

Can I build an ADU in an HOA community?

California law (Civil Code § 4751) generally prohibits HOAs from banning ADUs outright. However, an HOA can still impose reasonable restrictions on design, materials, and placement, and can require you to submit architectural review before construction.

We build in HOA communities regularly and can prepare the design submission package for your HOA review as part of the project.

Do I need a separate utility meter for my ADU?

Not always. For an attached ADU or a garage conversion, you can often share utility service with the main house if your jurisdiction permits it and your electrical panel has capacity. For detached ADUs that will be rented, a separate electrical meter is usually required so the tenant can be billed directly.

Utility connection costs vary from $2,000 for a shared service to $25,000+ for a full new service drop with trenching. We scope this in the feasibility phase so there are no surprises later.

Can I convert an existing garage into an ADU, or does it have to be new construction?

Yes, garage conversions are one of the most common ADU projects in California, and state law has significantly expanded the right to convert existing garages into habitable units. You do not need to add replacement parking in most cases, even if your garage was previously required parking.

The conversion does need to meet residential building standards — proper insulation, egress windows, fire separation from the main house, and a compliant bathroom and kitchenette. We handle all of that within a single contract.

Cost & Financing

7 questions
How much does an ADU cost in California in 2026?

Construction costs range from roughly $65,000 for a small junior ADU up to $520,000 for a large commercial conversion. The most common ranges are: garage conversions $120,000–$195,000; attached ADUs $180,000–$325,000; detached ADUs $245,000–$420,000; above-garage units $235,000–$395,000.

Those figures cover construction. Permit and utility fees are separate and vary widely by jurisdiction. Our Pricing page has a detailed breakdown by ADU type and finish level.

Is your price fixed, or does it change during construction?

Our price is fixed at contract signing for the scope written in the contract. If you request additional scope after signing — a larger deck, upgraded appliances, extra cabinetry — that becomes a written change order with a fixed price before the work proceeds.

If site conditions reveal something that could not reasonably have been discovered during feasibility (buried debris, an unmarked utility line, soil contamination), we document it with photos and present a fixed change-order price before continuing. You are never billed for a surprise after the fact.

What is the payment schedule? Do I need a large deposit?

No large deposit. Our contract starts with a 5% payment at signing that covers the design and engineering work that begins immediately. From there, payments are tied to completed milestones: 15% at design approval, 20% at permit issuance, 25% at foundation completion, 25% at framing completion, and 10% at final walkthrough.

Every payment corresponds to work already performed. We never bill in advance of progress.

Are permit fees included in the price?

Permit fees are not included in our construction price, but we do not add a markup to them either. You pay the jurisdiction directly at their published rate, and we provide receipts for every fee. This is the fairest way to handle it — the same fee applies whether we build your ADU or a competitor does.

As a rule of thumb, permit and impact fees in California range from $4,000–$8,000 for a small garage conversion up to $30,000+ for a large detached unit in a high-fee city.

What financing options exist for an ADU?

The four most common options are: (1) a HELOC against existing home equity, (2) a cash-out refinance, (3) a dedicated ADU construction loan, and (4) Fannie Mae's ADU-specific underwriting, which allows rental income from the new ADU to be counted toward qualification.

We work with a small network of California lenders who specialize in ADU projects and can refer you directly. See our Financing page for details.

Will an ADU increase my property taxes?

Yes, but typically not as much as people assume. In California, only the added value of the new unit is reassessed — your existing home's Prop 13 tax base is preserved. A $250,000 ADU, for example, would add roughly $2,500–$3,000 per year to your property tax bill at current rates, while potentially generating $30,000–$45,000 in rental income.

You should confirm your specific situation with your county assessor. We can provide you with a rough estimate based on comparable projects.

How much rental income can an ADU actually generate?

It varies significantly by location and unit size. As of early 2026, well-built one-bedroom ADUs rent for approximately: $2,800–$4,200/month in the Bay Area, $2,200–$3,500 in the Los Angeles metro, $2,000–$3,200 in San Diego, and $1,600–$2,400 in Sacramento and the Central Valley.

Many of our clients see the ADU pay for itself from rental income in 8–14 years, before accounting for property value appreciation.

Construction

6 questions
Do you use your own crew, or do you subcontract everything out?

Our core structure crews — framing, finish carpentry, and inspection coordination — are direct employees, not subcontractors. We do use licensed specialty subcontractors for electrical, plumbing, HVAC, and roofing, which is standard practice in California and required for those trades.

Every subcontractor we work with has been with us for at least three years, is fully licensed and insured, and works under our project manager's supervision.

Will construction disrupt my daily life?

For a detached ADU in the backyard, disruption is minimal — most clients say they barely notice it after the first two weeks. For garage conversions and attached units, expect more visible activity: site access, some noise during demolition and framing, and a temporary loss of that portion of your property.

We work standard business hours, keep the site clean daily, and coordinate access so you always know when a crew will be on your property. We do not work weekends unless you request it and approve it in advance.

How often will I hear from you during construction?

Every Friday you receive a written progress summary with photos, completed milestones, and the plan for the coming week. Your project manager is also reachable by phone or email throughout, and is on-site at least three times per week.

If something unexpected comes up — a delayed inspection, a material backorder — you hear it from us the same day, not two weeks later.

Can I make changes during construction?

Yes, within limits. Finish changes — paint colors, cabinet hardware, lighting fixtures, tile selections — can usually be accommodated without delay if requested before that phase of work begins. Structural or layout changes require revised drawings, a permit revision, and a written change order, and they will add time to the schedule.

We will tell you honestly if a change is worth the cost and delay, and if it is not, we will say so.

What happens if it rains or something goes wrong?

Weather delays are built into our schedules — we do not promise impossible timelines. If rain stops work for more than a couple of days, we make it up on subsequent weeks where possible.

For non-weather issues — material shortages, inspection backlogs, utility delays — we communicate immediately and adjust the schedule in writing. Our contracts include realistic contingency for these situations.

Will you clean up the site every day?

Yes. Our crews sweep the site daily, secure materials and tools, and remove construction debris weekly. At the end of the project, we conduct a full site cleanup including power-washing any hardscape and removing every trace of construction dust.

We also protect your existing landscaping, driveway, and hardscape during construction with plywood and protective coverings at our own cost.

Renting & Living

5 questions
Can I legally rent out my ADU?

Yes. Under California law, a permitted ADU can be rented separately from the primary residence. You cannot sell the ADU separately from the main home, and you cannot convert it to a short-term rental in many jurisdictions (rules vary by city).

Long-term rentals — 30 days or longer — are permitted statewide for compliant ADUs. Always confirm short-term rental rules with your specific city.

Can I use the ADU for family instead of renting it?

Absolutely. Multigenerational living is one of the primary reasons homeowners build ADUs. Common uses include housing aging parents, adult children, extended family, or a live-in caregiver. There is no requirement that the unit be rented, and no penalty if you choose to occupy it yourself.

Can I Airbnb my ADU?

Rules vary by city. Some California jurisdictions allow short-term rentals of ADUs with a permit and tax registration. Others prohibit them entirely for ADUs. Los Angeles, San Diego, and San Francisco have specific restrictions, while many smaller cities permit them with registration.

We will tell you what your specific jurisdiction allows during the feasibility phase, so you can plan accordingly.

How do I screen tenants for my ADU?

Standard California tenant screening applies — credit check, income verification (typically 2.5–3× rent), rental history, and background check. We do not provide property management services, but we can refer you to local property managers who specialize in ADU rentals if you prefer not to manage the unit yourself.

What utilities does the tenant pay?

If the ADU has separate meters for electricity and gas, the tenant typically pays those directly. Water and sewer are usually shared with the main house unless a separate meter is installed (which is possible but adds cost).

Your lease should clearly state what is included and what is not. We will design the utility setup during feasibility to match how you plan to use or rent the unit.

Warranty & Support

5 questions
What kind of warranty do you offer?

We provide a ten-year structural warranty on the building envelope and framing, plus a one-year warranty on finishes, fixtures, and systems we installed. Manufacturer warranties on appliances and equipment pass through to you and typically range from 1 to 10 years depending on the product.

Warranty terms are delivered in writing at handover, along with appliance manuals and a maintenance schedule.

What is covered under the 10-year structural warranty?

The warranty covers defects in structural framing, foundation, and load-bearing assemblies that result from our workmanship or materials. It does not cover damage from earthquakes, floods, neglect, or modifications made by others after handover — those are typically covered by homeowner's insurance.

What happens if something goes wrong after move-in?

Call or email us. For warranty issues, we schedule an inspection within five business days and perform corrective work at no cost if the issue falls under warranty. For non-warranty issues, we provide a written estimate before performing any work.

Our clients regularly tell us this responsiveness is the difference between us and other contractors they have dealt with.

Do you provide maintenance guidance for the ADU?

Yes. At handover, you receive a printed maintenance schedule covering seasonal checks, filter changes, drainage inspections, and exterior care. It is written for a homeowner, not a contractor — plain language, specific intervals, and a checklist you can actually follow.

Can I get references from past clients?

Yes. We provide two or three references from clients in your area with a similar ADU type to the one you are considering. You can speak with them directly, ask whatever questions you like, and if you want, we can arrange a site visit to see a completed unit in person.

We do not hand out a scripted list — you talk to real clients, unedited.

No matching questions

Try a different search term, or contact us directly — we are happy to answer any question not listed here.

What Fifteen Years Taught Us

412 ADUs Built Since 2011
98% On-Time Completion Rate
4.9 Average Client Rating
100% Permit Approval Rate

Question Not Answered Here?

Every property is different. If you do not see your situation addressed, tell us about it — a real project specialist will get back to you within one business day with a direct answer, no template response.

Ask Us Directly

Ready to Move Forward?

You have the answers. Now get a plan. Tell us about your property and we will deliver a written feasibility report with realistic options and cost ranges.

(415) 867-5309
450 Mission Street, San Francisco, CA 94105
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