Should I Add An ADU To My Multi-Family Property?

Should I add an ADU to my multi-family property?

Have you thought about adding an accessory dwelling unit to your muti-unit property? Last year saw the passage of SB 9 and SB 10 which make it much easier to add additional units than it had previously been. Whether you have a SFR, a duplex, or a multi-unit building, you may be able to add additional units through a much easier process than was previously available to you. This could add value to your property that could well exceed the cost of construction.

This may also be a consideration if you are thinking of selling, because the possibility of adding another unit may add to the value of your property for the new owner. Even though construction costs have gone up dramatically since the pandemic, it may be wise to look into the possibility of adding a unit.

Always check with your General contractor, CPA, and your own legal counsel before moving forward with any additional units, but it may be a good idea to explore the possibilities. We are Real Estate brokers, so we can’t give legal or accounting advice.

What we at PRS PROPERTIES CAN DO. We can discuss with you the current rents in your area and supply you with comparable rental prices for similar properties. Before you hire a manager, make sure the compensation is fair to you! We can also look at your building for changes that might allow you to get a higher value in order to create value without huge expenses for your building. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.

We always have many investors who are looking for “as-is” properties and are willing to purchase with low rents, a moratorium, or even with a problem tenant in place. We have put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are in 1031 exchanges and need to identify a replacement property before their 45-day identification period runs out.

Should you decide to put your property on the market, we will put together an aggressive, targeted, and professional campaign to get your property sold fast. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.

Remember – KNOWLEDGE IS POWER!