How Garage Conversion Affects a Home's Value img

How Garage Conversion Affects a Home’s Value

Are you wondering how garage conversion affects a home’s value?

Converting the garage of a single family home into an accessory dwelling unit (ADU) can increase a home’s value. It can also be profitable for a homeowner who doesn’t even plan on selling their home.

How can garage conversion be profitable? There are various ways that upgrading your a home’s garage into a living space can be profitable. One way is that it can increase a home’s value for anyone planning on selling a home.

How Can Garage Conversion Increase a Home’s Value?

Let’s go into detail about how a garage conversion can increase a home’s value by going over some examples.

First Example of How Garage Conversion Affects a Home’s Value in a Good Way

Let’s consider a home that has a value of $600,000 USD and is 2,000 square feet large.

In this case, the value of each square foot is worth about $300. If an ADU that is 400 square feet large is added to this home, the total square footage of the home will be increased to 2,400 square feet.

Therefore, the additional 400 square feet of living space multiplied by $300 per square foot can increase the homes value by $120,000 USD.

The Mathematics Behind the First Example:

Home Value Before Conversion = $600,000

Home Size Before Conversion =  2,000 Square Feet

$600,000 Divided by 2,000 Square Feet = $300 Per Square Foot at Current Homes Value

Adding 400 Square Feet of Living Space x $300 Per Square Foot = $120,000

Home Value After Conversion $600,000 + $120,000 = $720,000

In this first example, the home’s value is increased by a whopping $120,000 by only adding 400 square feet of living space to the home. This is without a garage extension.

An extension could have increased the additional square footage of the home by even more than 400, which would have increased the homes value relatively. Therefore, if the ADU was 600 square feet instead of 400 square feet in this first example, the value of the home would have increased by $180,000 instead of getting increased by $120,000.

In this case with an extension of 600 extra square feet instead of 400 extra square feet, the homes value would have increased to $780,000 from the extra 600 square feet instead of $720,000 from the 400 square feet.

Second Example of How Garage Conversion Affects a Home’s Value in a Good Way

Let’s consider a home that has a value of $1,000,000 USD and is 2,000 square feet large.

In this second example, the value of each square foot would be worth about $500. Let’s calculate how much value an ADU that is 400 square feet can add to this home.

The extra 400 square feet of living space from the ADU multiplied by $500 per square foot can increase the homes value by $200,000 USD.

The Mathematics Behind the Second Example:

Home Value Before Conversion = $1,000,000

Home Size Before Conversion =  2,000 Square Feet

$1,00,000 Divided by 2,000 Square Feet = $500 Per Square Foot at Current Homes Value

Adding 400 Square Feet of Living Space x $500 Per Square Foot = $200,000

Home Value After Conversion $1,000,000 + $200,000 = $1,200,000

In this second example, the home’s value is increased by a whopping $200,000 by only adding 400 square feet of living space to to the property with an ADU. This is without an extension.

An extension could have increased the additional square footage of the home by even more than 400. The homes value could have increased by relatively more based on the extra square footage of the extension.

Let’s consider if the ADU was 600 square feet with an extension instead of 400 square feet in this second example. In the case of this second example, an ADU with an extension of 600 square feet could raise the value of a home by an additional $300,000 compared to the 400 square foot ADU raising the homes value by $200,000.

Therefore, in this case, if the ADU was 600 square feet instead of 400 square feet, the homes value would have increased to $1,300,000 from the extra 600 square feet instead of being raised to $1,200,000 from the 400 square feet.

Increase Your Homes Value by Converting a Garage into an ADU

Are you planning on converting your garage into an ADU? A California garage to ADU conversion can be an extremely beneficial thing for your life and your future.

A recently passed law called Senate Bill 1069 has made converting a garage into an ADU easier than ever to legally accomplish in California. A garage conversion contractor near you can help with remodeling your old garage into all types of new room additions that can be used as extra living space!

Are you located in or around Los Angeles County, California? Don’t settle for anything but the highest quality work in your home. No need to search online any longer. We are popular for being one of the best construction companies Los Angeles can provide.

Provide us with the details of your project and we would love to turn all your desires into a reality.

what is an accessory dwelling unit?

What is an Accessory Dwelling Unit?

An Accessory Dwelling Unit, also called ADU, is what Senate Bill 1069 (SB-1069) refers to as a secondary housing unit for residential homes which have been been developed from a garage conversion.

Prior to the recently passed law SB-1069, converting garages into accessory dwelling units were a much harder thing to legally accomplish.

Purpose of SB-1069 for Accessory Dwelling Units

This law was passed in order to provide additional low cost housing options for home renters. In addition, the law is also beneficial to homeowners due to the fact that it provides the opportunity to make additional income.

Are you wondering, how can garage conversion can be profitable? There are various reasons how converting a garage can be profitable. The main way it adds additional income for property owners is due to the fact that they can now convert their garages into these new living spaces that can be rented out.

This is a win win situation for renters and landlords due to the fact that renters can save money as a result of affordable rent for these ADUs, while landlords can make extra money as a result of them.

Accessory Dwelling Unit Benefits Overview

  • Provides additional low cost housing options for renters.
  • Provides additional income for property owners.

Accessory dwelling units benefit the economy mainly for these reasons. Increased amounts of people get to save money while at the same time an increased amounts of people get to make extra money. This creates economic efficiency and has a positive impact on the economy.

Are you thinking about converting your old garage to an ADU? Our construction company in Los Angeles, CA specializes in converting garages to ADUs. Get a free estimate now!

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Can Garage Conversion be Profitable?

Yes, garage conversion can be profitable for property owners. This is especially true if the main purpose of converting the garage is to make profit in the first place.

Although remodeling a garage into an Accessory Dwelling Unit (ADU) might seem expensive at first, there are various ways that it can truly be a profitable investment. Are you wondering how converting a garage can be profitable?

There are various ways that a conversion can be profitable.

How Can Garage Conversion be Profitable?

Some ways that garage conversions can be profitable are listed below.

Financing the ADU and Renting it Out for a Higher Monthly Price

One main way a garage conversion can be profitable is if it is financed rented out for a monthly rent price that is higher than financing cost.

In this case, if the property owner finances the payment and pays less monthly for the monthly financing price compared to the price of rent received from a renter, the difference in money would be profit.

For example, if a property owner finances the job for $450 a month, and rents the unit out for $1000 a month, the property owner will make the difference in profit every month, which would be $550 profit per month in this case. After the financing is paid off, the monthly payment of $1000 in rent can be counted as full profit.

Paying for the ADU in Cash and Renting it Out for Monthly Income

Another case that a conversion could be profitable during a situation where it’s to be rented out is if the project is paid off in full up front.

In this case, a certain amount of months of renting out the unit would pay off the cost of the project. Then the payments of rent for the months thereafter can be considered profit. Therefore, if a homeowner spends $24,000 on a conversion, and rents the unit out at a price of $1000 a month for two years, the $24,000 cost will be covered in two years and then the income from months of rent thereafter can be considered as profit.

Increasing a Home’s Selling Price by More Than the Cost of Conversion

Another simple example of how a garage conversion can be profitable is during a situation where the house is to be sold.

If the is if a property owner spends less on the job compared to how much they increase the selling price of the house, the additional difference would remain as profit.

For example, let’s consider a situation if a homeowner were to pay a construction company $20,000 to convert their garage. If the homeowner increases the selling price of the home by more than the cost of the conversion, the additional money would be profit. If they spend $20,000 and sell their home for $60,000 more than the original price they would have sold it for if the conversion hadn’t taken place, the homeowner would make $40,000 profit as a result.

This is not investment advice. None of the information provided on this article should be taken as investment advice.

Can You Turn a Garage into a Pool House?

Can You Turn a Garage into a Pool House Legally?

Can you turn a garage into a pool house? Many property owners that have a garage near a swimming pool may wonder about this.

Yes, a Garage Can Be Converted into a Pool House. Legally and Easily.

Due to recent laws passed, property owners can now do a garage conversion into a pool house with legal ease.

As a result of Senate Bill 1069 (SB-1069), the process of converting a garage into a living space such as a pool house or room addition has gotten legally easy.

The extra living space that garages can be converted to are more formally referred to by SB-1069, as secondary housing units on single-family residential lots, called Accessory Dwelling Unit (ADU). SB-1069 provides a set of standards for property owners to follow in order to legally convert a garage into an ADU.

Why Does Senate Bill 1069 Make it Easier to Convert a Garage into a Pool House?

Before this law was passed, there were no standard of rules on which legal garage conversion could be based on.

Therefore, cities used to have the right to force homeowners to get permits and/or licenses which where difficult to obtain, in order to convert their garages into a secondary housing unit. As a result, homeowners used to continuously come across legal conflict with converting their garages into pool houses prior to SB-1069.

Thanks to SB-1069, property owners are now able to convert their garages into pool houses with legal ease.

Does Our Company Convert Garages into Pool Houses?

The answer is yes, our construction company in Tarzana, Los Angeles, CA, can convert any old garage into beautiful pool house,

We Convert Garages into Pool Houses of All Shapes and Sizes.

Our garage conversion contractors specialize in turning old garages into pool houses and all other types of other room additions as well. Whether you want to turn your garage into a master bedroom addition, kitchen addition, or any other form of living space, we can do it for you. Our remodeling experts can go over all the specific details with you in order to your vision into a reality.

It’s a Great Time to Convert a Garage into a Pool House

Why is it such a great time to convert a garage into a pool house? Senate Bill 1069 now makes it easy for property owners to convert a garage into a pool house.

As property owners are beginning to find out about these legally beneficial laws that have been recently passed, more and more of them decide to convert their garages into ADU.

California Garage to ADU Conversion

California Garage to ADU Conversion

California garage to ADU conversion is the second most common way to create additional dwelling space within an existing residential home in Los Angeles.

In California, garage conversions are commonly referred to Accessory Dwelling Units, “ADUs”. A law called Senate Bill 1069 made it easier for homeowners to legally build ADUs on their properties. The bills text provides detailed information about regulations and rights of residents regarding ADUs.

In fact, a large number of Los Angeles residence already live in “back houses” and ADUs. After all, Converting a garage into a living space can be the easiest and most cost-effective way to create an additional dwelling unit to your property. In addition, it can offer various other advantages as well.

Can garage conversion be profitable? Yes, there are various ways that a property owner can profit from converting their garage into an ADU.

Additional Rental Income

ADUs provide an additional source of rental income for homeowners and low-cost housing for many renters living in Los Angeles.

Likewise, an ADU conversion offers manageable density to single-family areas where new apartment complexes would be hard to construct.

California Senate Bill 1069

In 2016, California Senate Bill 1069 made it easy for homeowners obtain approval of remodeling garages into new living spaces.

The bill to reduce the barriers many California homeowners face when seeking to build an accessory dwelling unit or granny flat on their property.

Garage to ADU Conversions Size Requirements in California

California Garage to ADU conversion size requirements can vary by city in California.

For instance, in the City of Santa Monica, all types of ADUs can be up to 650 square feet in size. On the other hand, in City of Glendale garage to ADU conversion size requirement is limited to a maximum of 600 square feet. City like Santa Monica, Glendale, and Pasadena have ADU ordinance which outlines city-specific guidelines for ADU dwellings.

However, per state law, the size of an ADU attached to the main residential house is limited to a maximum of 1,200 square feet or half the size of the existing residence, whichever is smaller. While, detached ADUs can not be larger than 1,200 square feet.

Do You Need a Permit for Los Angeles Garage to ADU Conversion?

In Los Angeles-area cities, and in unincorporated Los Angeles County, homeowners seeking to do a garage to ADU conversion may need to run the plans for the remodeling project by their local department of building and safety.

ADU Certificate of Occupancy

Upon the completion of California garage to ADU conversion, homeowners will need to obtain a certificate of occupancy before a tenant can move in.

As such, the ADU structure will need to be inspected, including electricity, plumbing, and heating system will be required to all be in working order.

Garage Conversion Ideas

There are many types of rooms that garages can be converted into. Some conversion ideas include:

  • ADU conversions
  • Living space conversion
  • Studio conversion
  • Game room conversion
  • Home office conversion
  • Playroom conversion

Garage Conversion Contractors in California

Are you are seeking an experienced garage conversion contractor for your project?

Experts at our construction company offer the highest quality garage conversion Los Angeles can provide. Get a free estimate online or call now to go over the details of your project!