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How to Use New ADU laws to Make Passive Income With Rental Property

Posted by Rafi on

New California ADU laws are a game-changer when it comes to making passive income with rental property. Before passing these laws, the bureaucratic process was a nightmare – and there was little guarantee of approval. And as a result, many well-intentioned homeowners either abandoned their hopes of renting out a back-house or took the gamble of leasing it off the books.

Now, these homeowners have a streamlined process to ensure that their structure is eligible for renting. There are important considerations to make in regards to how you rent these structures. We need to take a closer look at these laws to determine if you are eligible to rent more than one structure on your property and if your zoning permits residents to use these units for Airbnb vacation rentals. 

How California Law Defines Accessory Dwelling Units (ADU)

Before looking at what these new laws permit, it is essential to understand how California defines the various types of ADUs:

An ADU is an accessory dwelling unit with complete independent living facilities for one or more persons.

Detached ADU: A dwelling unit that is detached from the primary structure

Attached ADU: A dwelling unit that is attached from the primary structure

Converted Space ADU: Space (e.g., master bedroom, attached garage, storage area, or similar use, or an accessory structure) on the lot of the primary residence that is converted into an independent living unit.

Junior ADU: A Junior ADU is essentially renting out a spare room – with some caveats. Like the converted space ADU, this unit is converted from existing space within a single-family dwelling, but it has a maximum size limit of 500 sq.ft, and it is permitted to share bathing facilities with the primary dwelling. These also require owner occupancy of the JADU or primary residence.

The New ADU Statewide Guidelines

The primary change that streamlined this process for so many Californians came from Assembly Bill 3182. In it, the legislators changed the approval process from discretionary to ministerial. Plain language: instead of someone making a personal decision on your application, the governing body is required to approve the request if all requirements are met. So now, there is no added pressure to justify your reason for the ADU.

To make the approval process even faster, legislators added that the application will automatically be approved if the local agency doesn’t respond within 60 days. In addition to the speed and easy approval process, lawmakers expanded ADU permission to homeowners belonging to an association or living in any common interest development.

Here are some remaining guidelines that Californians should keep in mind:

  • Californian cities are required to allow at least one ADU per single-family home.
  • Cities are required to charge a utility fee that is in proportion to the ADU size. That fee is reduced if the ADU is constructed in the main house.
  • If a converted space ADU is constructed within a half mile radius of a transit stop or car-share, then the homeowner will not be required to include additional parking space.
  • Cities will no longer be able to require a 10-foot passageway to the ADU.
  • Standing garage conversions no longer need setbacks, but ADU’s built above the garage need a rear five-foot setback.
  • The ADU floor cap space for detached units is 1,200 sq. ft, and for attached units, it is the lesser of 1,200 sq. ft or 50% of the house size.

Like in every bill, there are always regional exceptions. So, it is essential to look up your local zoning rules to see if you still qualify. You will also need to make sure that the ADU meets all the appropriate California health and safety codes. Luckily we are pros at meeting all of these requirements and submitting the appropriate permits on your behalf.

Determining the Best Passive Income Strategy For Your ADU

If you live in Los Angeles, there are additional limitations to exactly how to make passive income with rental property. In 2018 they placed restrictions on Airbnbs and vacation rentals. These restrictions make sense when you consider the intent behind the new ADU laws. California is trying to solve the housing shortage crisis. And if these ADUs are being used primarily for tourists, it defeats the purpose of providing more living space for Angelenos. That being said, creating fun and interesting ADUs for vacationers also brings business and opportunity to the city, so they have provided limited ways to fill a vacation rental year-round in LA.

How to Qualify Your ADU for Airbnb in Los Angeles

To list an ADU on Airbnb, you will need to demonstrate that the ADU is your primary residence. Airbnb provides a list of documentation required to meet this requirement. Some Airbnb hosts prefer to list their entire home on Airbnb and use the second unit to stay when guests occupy the Airbnb. Either option, though, still requires that the listing be your primary residence.

Secondly, Angelenos are only permitted to fill their primary residence with Airbnb guests 120 days a year. And the home cannot be subject to the city’s Rent Stabilization Ordinance. This ordinance applies to most non-single family units built before 1978. And most importantly, the area must be approved for residential use. Airbnbing a camper or an ADU not properly zoned is not allowed. 

Despite the 120 day limitation on airbnbing your primary residence, Angelenos can pay an $850 fee to apply for extended renting. They will need to have maintained a valid home-sharing registration for 60 days, have no registration suspensions within the past two years, and have no more than one citation for the past three years.

So if you can demonstrate that Airbnb is your primary residence, don’t live within a rent-controlled zone, and your extended home-sharing application is approved, then you may be one of the lucky few who can use their ADU on Airbnb year-round to make passive income with rental property.

How to Determine The Number of ADUs to Build on Your Property

The new ADU laws require that cities allow at least one ADU per single-family property. This change does not mean that local city agencies cannot allow more than one. But each county and city have different guidelines. For example Los Angeles, Orange County, and Ventura County each permit different numbers of ADUs with specific exceptions. It also means that you can still apply for another ADU if you already have a secondary dwelling unit on your property from before 2019.

So if you are looking to maximize your rental income and your local zoning agency permits more than one ADU, building multiple ADUs might be a good strategy. Since California no longer requires occupancy on the property, you could convert a single-family home into a triplex and rent all three units.

If your goal is less about maximizing rental income and more monetizing your property at your discretion, then it may make more sense only to build one ADU for an Airbnb. Or you could do a hybrid of the two options. Either way, it is important the new construction ADUs are designed to maximize space, increase curb appeal and make the property attractive to future buyers.

We are experts in thinking through all of these details and helping you make a decision that best meets your needs. Contact us today, and we will connect you with one of our ADU designers that can answer any question and get you a quote right away.

info@ucanrinc.com | 310-500-7234

 

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The 5 Main Types of Driveways and why Paver Blocks are Still the Best

Posted by Rafi on

All types of driveways have their pros and cons, but after being in the business for more than 20 years, we firmly believe that paver blocks are the best solution. And the reason is simple; they are the best investment. We have seen this type of driveway’s durability and cost efficiency outperform its stamped concrete alternative time and time again. Plus, its enduring beauty adds the most resale value of any other driveway option. Before we dig into the cost-benefit analysis, let’s examine the different types of driveways.     

Asphalt Driveway 

Asphalt is a popular driveway option throughout the country. So many homeowners choose this driveway material because of its versatility. It is an affordable and reliable solution just about anywhere but is most prevalent in rural suburbs. Its biggest drawback compared to stone pavers is that it doesn’t last as long and does not provide nearly as much resale value.

Pros

Price: This driveway type can cost between $5 to $12 a square foot – relatively affordable compared to alternatives. 

Maintenance: The material allows for easy repairs that don’t require redoing large sections of the driveway. 

Cons

Durability: Asphalt does not have a long lifespan. It ranges between 20-25 years which is significantly shorter than most.  

Eco-friendly: Since asphalt uses petroleum, it has lasting negative impacts on the environment. 

Weather: This type of driveway is not great for hot climates. Its black surface absorbs the heat making it uncomfortable to touch and bad for tires. 

Concrete Driveway

Second to asphalt, concrete is another popular type of driveway. Its popularity is primarily due to its “lay and forget about it” appeal. There is very little maintenance required, and in some areas can last up to 40 years. Though, this appeal is lost on most southern Californians. Any daytime stroll along a sidewalk quickly reveals that concrete does not hold up well on our ever-shifting tectonic plates. Since we live in California, we always inform customers of this eventuality and strongly recommend paver blocks as a better solution.   

Pros

Price: It can cost between $5 and $8 per square foot.

Durability: Can last up to 40 years (in select climates)

Maintenance: Almost none required.

Cons

Cracks: Regardless of location, all concrete will crack.

Repairs: When concrete does crack or is damaged, it is challenging and expensive to repair.

Gravel Driveways

Gravel driveways are one of the most affordable driveway options, but they offer the most negligible resale value of any alternatives listed. They require regular maintenance and frequent additional gravel leveling. And if you have a lawn, you will need to regularly rake the loose gravel to avoid damages to your lawnmower. We understand budget constraints when comparing stone gravel to paver blocks. Still, We encourage customers to consider pavers if they are open to selling down the road and want to avoid time-consuming maintenance.      

Pros

Price: $1 to $3 per square foot

Variety: Customers can choose between many different types of stone.

Easy to Install: With the right tools, homeowners can easily lay the stone themselves on small driveways.

Cons

Up-keep: Since gravel is a loose material, gravity, vehicles, and other natural forces will inevitably create an uneven driveway with potholes, ruts, and alike. 

Weather: It is difficult to plow or shovel snow or any substance from gravel surfaces. 

Dirt: Cars kick up gravel and dirt, making your vehicle dirty and sometimes leaving scratches. 

Stamped Concrete Driveway

Stamped concrete is the closest alternative to paver blocks but has the same drawbacks as regular concrete – and then some. It endeavors to add the same aesthetic and resale value as actual paver blocks at a lower price. The main problem with this approach is that any repairs or design adjustments are complicated and expensive. And like stated before, southern California is not friendly to concrete.    

Pros

Price: $10 to $12 per square foot

Design: Stamped concrete has an unlimited number of styles and appearances.

Durability: Last as long as a regular concrete driveway, but the stamping can fade faster than the concrete lifespan.

Cons

Cracks: Regardless of location, all concrete will crack.

Repairs: When concrete does crack or is damaged, it is challenging and expensive to repair – especially with custom stamped designs.

It is Not Easy: Since contractors pour the concrete at once, it is tough to stamp and stain with zero mistakes.

Paver Blocks Driveway (The Best Solution)

There is a reason why among all the different types of driveways, paver blocks have remained such an iconic paving style for centuries. They are flexible, durable, and, most importantly, beautiful. The right craftsmanship can make driveways, roads, and patios artwork for generations to admire. This time-tested technique is why all home renovators and flippers never turn down an opportunity to use paver blocks in their design plans.  

Pavers defined:

Pavers are tiles, bricks, or stones used as exterior flooring, commonly used in driveways, pathways, and walkways. They are made up of a mixture of these four materials, including clay, stone, brick, and concrete. Pavers vary in different colors, textures, shapes, and sizes.

Pros:

Durability: With the right materials, pavers can last 75 years

No heavy equipment: It does not require a lot of construction vehicles to lay the pavers.

Highest Resale Value: Its durability and beauty make it an attractive feature to buyers.

Wide Selection: Customers can choose between a wide variety of colors and materials.

Easy Maintenance: Simple power washes can brighten and make pavers look brand new. 

Easy Repairs: Since contractors install pavers one by one, it is easy and affordable to repair damaged or settled stones. 

Slip Resistant: The porous pavers absorb rainwater preventing puddles and slipping. 

Cons: 

Can be expensive: The price varies from $10 to $30 a square foot.

Weeds: improper installations can result in weeds growing through the cracks.

Why the Strong Point of View

Among all the different types of driveways, we are such strong advocates of paver block driveways because the pros far outweigh the cons. We understand that many shy away from the upfront costs, but a deeper look into the added property value shows just how cost-effective this type of driveway is. But, to benefit from the full value, the installer must lay the pavers correctly with great care and craftsmanship. One small mistake can result in uneven pavers, weeds, and gaps. Our contractors are the best at taking every precaution to ensure that the interlocking pavers are installed correctly. Our team of designers and contractors can help plan a beautiful paver block driveway that will be admired for generations. 

If you’re looking at pavers or these other types of driveways for an upcoming project, reach out to our team today to discuss the best options for your space and design.

info@ucandrinc.com | 310-500-7234 | Send us aMessage

 

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How to Make a Roll-in Shower Look Like a Luxury Hotel Bathroom – Under Budget

Posted by Rafi on

Over this past year, we have seen homeowners flock to modernized bathroom renovations centered around the roll-in shower. Like many trends, this began in the minds of luxury hotel bathroom designers. They saw an opportunity to make a roll-in shower a luxurious spa-like experience. The great news is that the vacationers who never left their hotel bathrooms can experience the same relaxation at home and under budget! All it takes is following a simple guide through choosing the proper steam showers, glass doors, bathroom tile, therapeutic jets, lighting, and other amenities.

How to Choose the Right Roll-in Shower Design For Steam Conversion

Roll-in Shower Defined:

Roll-in showers are designed to blend seamlessly with the rest of the bathroom – some including glass doors and others not. We slope the shower floor to direct all of the water into channel drains. They are popular abroad because of their affordability and accessibility to the elderly and disabled.

Steam Shower Defined:

Steam showers bring the luxury of saunas into your home by integrating a steam generator into your bathroom shower. Like any sauna, it evenly disperses water vapor throughout an enclosed space – sometimes including the entire bathroom.   

Steam showers are the bell of the ball – the creme de la creme of any luxury hotel bathroom. They are what make you know that you are at a high-end resort, and they are the most talked-about feature of any open house. The New York Times has an entire article on the added resale value this one upgrade brings to a home. But, the feature cannot exist in a vacuum. Integrating steam conversion into a roll-in shower is a creative way to maximize your space and modernize the look and feel of the bathroom without breaking the bank. 

Designing With Steam Conversion Space In Mind

As with any renovation, the first step begins with evaluating the space. You will need to ensure that the steam area is enclosed. Some homeowners only want a small 8′ vertical space around the showerhead, and others desire room for an ergonomic bench and therapeutic bathtub in their sauna. If you want an open roll-in shower with no glass door, you will need to make sure you can convert the entire bathroom into a steam room.    

The larger space, the more expensive the steam room generator will be. This steam generator price calculator will give you a rough estimate of what your desired cubic area would cost. 

Once you know the cubic footage that fits your budget, then you can decide what additional features to include in the space. For example, most people looking to enjoy a steam shower want part of the experience sitting down. If limited on space, then I would consider adding a folding teak bench under the showerhead.  

Picking the Right Bathroom Tile or Alternative for the Full Sauna Effect

Choosing the right tile, wood, or stone surface will determine the entire project’s stylistic direction and overall cost. Materials can range from $3/sf to well above $30 or $40/sf and up. But, the material cost isn’t the only cost to take into consideration. The level of intricacy and quality will impact the cost of labor and set the standard of quality throughout the rest of your renovation decisions. For example, if you choose a high-quality granite surface for your shower, you will want the countertop to match in either material or quality. Therefore, it is crucial to keep the standard of quality consistent throughout the entire renovation. Any stark contrasts will only bring more attention to the cheaper and lower-quality solutions. 

When deciding which surface material to use in your steam shower, it is essential to choose insulating surfaces. Higher heat retention will make a big difference in sauna quality and the energy needed to keep the space warm. If the bathroom tile has lower heat retention, you will need to compensate with a higher quality steam generator. Nonporous materials like ceramic and porcelain are best at retaining heat. Using porous stones like granite, marble, and limestone will require regular maintenance to keep the surface sealed. Inevitably, the steam will damage the durability and appearance of nonporous tiles, letting the heat escape.     

If you are looking to add a bit of creative elegance and luxury without compromising the shower’s heat retention, consider using a wavy ceramic tile. This surface adds a great modern look to a bathroom at an affordable cost.  

Renovating The Bathroom for Comfort With the Right Therapeutic Jets and Shower Heads

Just like the steam shower, therapeutic jets are one of those add-ons that leave people talking. But before we review which jets will have you canceling your chiropractor appointment, we need to talk space again.  

The big question many ask is, tub or no tub? If you don’t feel the need or desire to take a bath, you are not alone. Homeowners are increasingly forgoing the bathtub altogether. This renovation decision can cut costs and offer more room for counter space or comfortable seating in the steam space. These renovators who still want the luxurious comfort of bathtub jets often opt for therapeutic shower body sprays with rain showers. Experiencing this all-encompassing pressure of water feels out of this world but has some important considerations. 

More water outlets require higher water pressure and result in higher water bills. To feel the full therapeutic effect of body sprays, you will need at least 45 psi. And if you like taking long hot showers, you will want to consider installing a larger water heater. You will also want to consider choosing shower sprays with thermostatic control valves. This feature will not only give you more control over the energy bill, but it will also provide better muscle relaxation.      

If you enjoy long baths, you may want to consider incorporating the bathtub with the roll-in shower. This choice will offer a consistent design, ensuring that the bathtub or roll-in shower will not seem out of place. In addition, you can incorporate a state-of-the-art whirlpool jet system and enjoy its therapeutic message in the same insulated sauna carved out for the steam shower.  

Adding the Awe Effect With the Perfect Lighting

Luxury 5 star hotels love to incorporate LED ambient lighting into their bathroom mirrors. Renovators can get creative with this and install similar recess lighting throughout the bathroom, including in the ceiling of the roll-in shower. This creative decision takes the sauna aesthetic up a notch, creating a captivating experience. And the nifty feature pairs well with bathrooms that use reflective materials like glass doors and glossy surfaces on the shower walls. Some even elect to use LED lights that can change color through remote control. 

In addition to using LED lights, home renovators install waterproof TVs with anti-fogging screens. This is another feature that takes the luxury hotel bathroom experience to a whole new level. With the out-of-this-world lighting and an open space design that provides visibility to your favorite binge-worthy Netflix shows, there is a serious concern no one would ever leave the bathroom.   

Tying it all Together For a Luxury Hotel Bathroom Experience

The hardest part of planning your bathroom renovation is – compromise. Unless you’re Jeff Bezos or have a money printing machine, you will need to prioritize your renovation objectives into a detailed list. Once you have identified which features will offer the most bang for your buck, you can brainstorm designs that showcase those strengths. Whether you decide that the surface design or heating capabilities are your top priority, we can help you navigate the best design options that will meet your goals. In addition, we will help keep things consistent and ensure that your bathroom is state of the art.  

Contact us today, and we will connect you with one of our bathroom designers that can answer any question and get you a quote right away.  info@ucanrinc.com | 310-500-7234

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