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Building an ADU in Sherman Oaks

Add square footage and increase the value of your Sherman Oaks home with an accessory dwelling unit.

an ADU's kitchen, laundry closet, and living space
A Sherman Oaks ADU Built by South Land Remodeling

Sherman Oaks, CA, is known for its idyllic suburban lifestyle, hip restaurants and cute boutiques. It offers a quieter small-town vibe minutes from the buzz of Los Angeles. Plus, single-family homes can offer more bang for their buck than Los Angeles homes.

That said, many Sherman Oaks homes could still use a boost in square footage. Or, you may have to choose between space limitations and moving.

An accessory dwelling unit (ADU) can be the ideal solution to avoid moving while gaining liveable space. ADUs can also be an avenue for generating wealth via home equity as well as rental income. These are just two of the many advantages of building an ADU in Sherman Oaks.

Let’s explore the various benefits that make building an ADU a smart financial and lifestyle decision.

Gain Square Footage Without Moving

According to the California Department of Housing and Community Development, you can build an ADU up to approximately 1,200 square feet, whether that’s a one-story or two, attached, detached, garage conversion or new build.

ADUs with one bedroom or less can be up to 850 square feet, while those with more bedrooms can be up to 1,200 square feet. All this means you can add significant living space without having to purchase a new home or additional land.

House Guests While Maintaining Privacy

There’s a reason why an ADU is commonly called a granny-flat or in-law unit. They make the perfect space to accommodate visits from family members. There are endless guest space options for the additional square footage, including detached ADUs for optimal privacy or attached for easy access to the main house. Each type of ADU can provide a separate space for guests – including a bedroom, bathroom, living area and kitchenette – to ensure you have privacy throughout the rest of your home.

Create a New Source of Income

Turning an ADU into a short-term or long-term rental can provide you an additional source of income. The average rent for a long-term ADU rental is about $2,500-$2,900 in California. Short-term rentals, also known as vacation rentals, can run the gamut in this area, depending the the size, finishes, features and more.

To help you source a long-term tenant, Los Angeles recently created a new program, the LA ADU Accelerator Program, which “pairs older adults with homeowners willing to provide a stable home by offering their accessory dwelling units (ADUs) as rentals. In exchange, homeowners receive benefits such as qualified tenant referrals, tenant case management and stable rental payments.”

Plus, the state is helping homeowners pay for the cost to build. California has an ADU Grant Program, which uses a $100 million fund to support the construction of ADUs as affordable housing across the state. A previous year’s fund offered $40,000 to qualified homeowners to build an ADU. Although 2023’s funds have been claimed, the details of the newest fund are being finalized.

Increase Your Home’s Value

According to some finance institutions, an ADU can increase your home’s value by up to 30%. The greater the ADU square footage, the greater the value increase. That makes it an excellent investment in your home, especially if you plan to stay put for years to come and continue building equity. For example, according to the National Association of Realtors, the average LA home price runs about $898,700, while the price of an LA home with an ADU can sell for $1,118,000.

South Land Remodeling is a licensed general contractor in Los Angeles who has years of experience building ADUs for Sherman Oaks, CA, residents. If you’re interested in building an accessory dwelling unit on your property, contact us today for a free consultation and estimate. You can also check out our recent ADU projects for inspiration.


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