Want to build an ADU in your Sacramento backyard? Tips from a homeowner on rent, size, rules
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ADUs in Sacramento
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Dov Kadin took an added risk three years ago when he bought his first home, a bungalow in North Oak Park: The young Sacramento professional built an “accessory dwelling unit” at the back of his lot to rent out.
He was one of the central city’s pioneers in constructing and renting out a stand-alone structure on his property. The modest 825-square-foot unit cost him an extra $140,000. That led to a time-consuming city approval process and some tricky financing.
Now, based on experience, Kadin says he wishes he had been even bolder. “In retrospect, it was such a no-brainer that I almost regret not building two units. I had the room.”
Three years ago, many cities still had layers of building rules that limited where and how residential property owners could add a living unit on their property. That included fee structures that made it difficult to build.
But with rents soaring, and available apartments slim, Sacramento and other California cities have eased the rules since then in hopes of encouraging more homeowners to consider constructing small rental units on their property.
Kadin had to pay the city to approve his design, a step that turned out to be lengthy. Now, the city of Sacramento is in the process of creating its own handful of pre-approved, off-the-shelf ADU designs that homeowners can choose if they want.
Kadin said his ADU has been the financial asset he had hoped it could be. He has a stable pair of renters who he gets along with, but who respect his privacy. His renters sometimes run their small dog in his backyard, but the front entrance to their unit faces the street alongside his corner house, so they do not have to walk past his house to get in and out.
He has been charging a rent of $1,500 a month, which is considerably affordable in Sacramento. Yet it provides him enough income to pay for the ADU and subsidize part of the mortgage on his main home.
Kadin, 31, didn’t do it merely for the money. He is an urban planner who saw how central Sacramento’s lack of housing and rising rents were squeezing out young residents, and he wanted to be on the ground floor of what he considered a part of the solution. It was, he decided, an investment in his community as well as an investment in his future.
“I am a big believer that it’s a win-win for everybody,” he said. “It is one of those rare situations where personal financial incentives align with community needs.”
His advice to property owners who are considering building an ADU: Work your way carefully through the costs and the financing. Consider simpler layouts and using off-the-shelf designs to reduce costs. Decide how much privacy you want to give up by sharing your lot. If the lot is tight, but the tenant inter-generational arrangements where the unit houses a family member could work out well.
His North Oak Park neighborhood is near downtown, as well as the McGeorge School of Law and the UC Davis Medical Center complex. It’s become something of an ADU hotspot, he said.
There now are three other ADUs within 300 feet, he said, including one that is made from a shipping container. Kadin thinks interest in building ADUs will accelerate in Sacramento like it has in the Bay Area and Los Angeles.
“We are not there yet, but ... I see that trend only going up,” he said. “I would do it again in a heart beat.”
This story was originally published September 29, 2021 at 5:00 AM with the headline "Want to build an ADU in your Sacramento backyard? Tips from a homeowner on rent, size, rules."