1. Budgeting

Tip: Set a realistic budget that covers everything—from construction to permits to any unexpected costs.

• Why It’s Important: Before starting any project, you need to know how much it will cost. This includes not only the main building expenses but also things like city fees for permits and a bit of extra money (called a contingency fund) in case something unexpected happens.
• Example: In Southern California, building an ADU can cost between $150,000 to $350,000. The price depends on things like the size of the unit, the materials you use, and how easy (or hard) it is to build on your land.

Pro Tip: Always set aside an extra 10-20% of your total budget for any surprises, like changes in material costs or unexpected issues during construction.

2. Design and Layout

Key Tip: Make your design efficient to use the space well. A smart layout can make even a small ADU feel bigger.

• Why It’s Important: ADUs are often smaller than regular houses, so you need to make the most of every inch of space. Consider an open floor plan (fewer walls = more room) and built-in storage like cabinets or shelves to save space.
• Think Ahead: Will the ADU be used as a rental property, or will family members live in it? This decision might affect the design. For example, a rental unit might need more privacy features, while a family space could be more open and connected to the main home.

3. Permits and Approvals

Tip: Start the permitting process early because it can take time to get everything approved.

• Why It’s Important: You need permits (official approvals) from your city before you can start building. Each city has its own rules, so it’s important to know what’s required. Some cities, like Los Angeles, have made it easier to get ADU permits, but the approval process can still take time.
• What You Need to Do: Check your city’s website for ADU permit requirements and get all your paperwork ready. Be prepared for some back-and-forth with the city if they have questions or need more information.

Pro Tip: Start applying for permits as soon as you have your design plan. Don’t wait until the last minute, as this can cause delays.

4. Hiring a Contractor

Tip: Choose a licensed contractor with experience building ADUs.

• Why It’s Important: A good contractor will make sure your ADU is built safely, on time, and within your budget. Look for someone who has worked on ADU projects before and knows the specific rules and challenges involved.
• How to Choose: Ask for a portfolio (examples of their past work), check references (talk to people they’ve worked for before), and make sure they have the right licenses.

Pro Tip: You can check a contractor’s license on your state’s contractor board website. This ensures they are legally allowed to work on your project.

5. Timeline

Insight: Be prepared for the entire project to take 12-18 months from start to finish.

• Why It’s Important: Building an ADU takes time, and it’s important to know how long each step will take so you can plan ahead. This timeline includes time for designing the ADU, getting permits, and completing construction.
• Breakdown of the Timeline:
  • Planning and Design: 2-4 months
  • Permitting Process: 4-6 months (depending on the city)
  • Construction: 6-8 months

Pro Tip: Stay in touch with your contractor throughout the process to make sure everything stays on schedule. Delays can happen, but good communication can help minimize them.

Conclusion

Building an ADU can be a great way to add value to your property, create extra space, or generate rental income. By following this checklist and staying organized, you can make sure your project runs smoothly and successfully. Remember to set a clear budget, design efficiently, start the permitting process early, hire the right contractor, and be patient with the timeline. With the right plan, you’ll be well on your way to completing a beautiful ADU.