FAQ

What Is the Cost to the Homeowner?

$0.

Homeowners also have the option to use their own cash, or the equity of their home to build an ADU on their property. You can either come out of pocket, or you rent us your raw garage and we turn it into something special and share the rental income with you. If you decide to come out of pocket, conversions generally range from $120-$160/ft and new build outs range from $200-$250/ft.

If I decide the leasing option how much is my share of the rent?

This depends on two different factors; the term of the lease and the average rents in your neighborhood. Generally, about $600-$800 of the rent is allocated towards financing cost An additional 20% of the lease is retained for operations and management. The remainder is paid to the homeowner depending on the rent we collect.

What is the term of the lease?

That is your option, but can range from 10-25 years. Once leased, we make the investment to convert, manage and maintain it. Once completed, we pay you a portion of the rent we collect. You may terminate the lease and buy out the improvements at any time for the cost to build.

Can I build an ADU on my Property?

Recent laws passed by California Congress has removed a significant number of restrictions on building ADUs. Almost all single family homes in California now qualify for building an ADU whether you have a freestanding garage or not.

Can I pay for the project myself and keep all the rent money?

Absolutely and we would be happy to let you do so!

Does EZ Dwellings have ownership of the ADU?

Absolutely not, the homeowner still owns the ADU, we are just leasing it from you. We own the improvements made on your property until the lease is paid off or bought out. We have a very simple buyout agreement in the case that you decide to lease and want to buy the ADU out midway through your lease.

Does my insurance change?

Notify your insurance company that you are adding an ADU. Depending on your insurance provider they may increase your insurance cost marginally (about $20).

Does EZ Dwellings pay for utilities?

Under lease terms EZ Dwellings will include a separate meter in which the tenant will be responsible for paying for utilities.

What if I (the homeowner) doesn’t like the tenant?

Our standard lease agreements have six month terms. If after six months the tenant is providing issues we will work together in replacing the tenant.

Do ADUs have any extra features or amenities?

ADUs are living spaces with the feel of a small home. Each ADU will come with a full set of stainless appliances, a full bathroom, energy efficient windows, LED Lighting, a washer dryer and its own entrance.

What about Pets?

The homeowner will determine whether they want to allow pets or not. However, service animals must be permitted.

Where will the Tenant park?

The homeowner has no obligation to provide additional parking.

How is an ADU different than just a guest room?

ADUs are tiny, separate living areas — tiny homes! They typically have their own kitchen, living area, bathroom, and a separate entrance. Although many ADUs are converted garages, or attached to a house, an ADU can also be built as a stand-alone unit. Stand-alone units will generally connect to the water and energy units of the primary house, or can be solar powered. Either way, they have the same basic areas as any home — including a bathroom, kitchen, sleeping and living areas.

How much does it cost to build an ADU?

Cost vary according to different factorsIn general, expect to pay between $180 to $320 per square foot. Some ADUs can be built for $60,000 while others cost $200,000 and up. The ADU requires a new foundation, utilities, appliances, etc. — so it’s going to be more expensive than painting a few walls, and adding an exterior door.

Does EZ Dwellings handle the entire process?

Yes. You can breathe a sigh of relief now. We can handle the entire process, including getting permits, design, construction, cleanup, even finding the best tennant(s) from your list or ours. We’ll even help your new tenant(s) move in so you can start making money right away.

What are the different ways I can Finance my ADU?

1. Home Equity Financing – The is the most popular way to finance an ADU through a variety of methods including traditional mortgages, refinancing, or HELOCs
2. Cash – pay out of pocket for your ADU and keep all the rents!
3. EZ Dwellings shared Income program – Dont put a dollar down, increase your home equity and cash flow monthly!
4. Partner Shared Equity program – work with one of EZ Dwellings preferred lending partners to keep all the Monthly cash flow and share the future equity of your property.

How long does the entire ADU process take?

Because every ADU is different, the project time, cost, and process varies. There are several stages to the process but they can generally be broken down into three groups: (1) Design, (2) Permits, (3) Construction. Most projects take between 4-6 months.

Uh oh. I already have an ADU on my property. It was there before they were legal. Do I have to tear it down or can it be grandfathered in?

You don’t have to tear it down, but you do need to legalize it. Depending on the city you are in the process of doing so might be different.

What will the address of this new ADU be?

You don’t need a new address, but our ADU can be permitted under your existing address. However, if a separate address is desired — especially for electrical, gas, and water connections and metering, we can request a ½ fractional number to your existing main address.

Does EZ Dwellings pay for utilities?

Under lease terms EZ Dwellings will include a separate meter in which the tenant will be responsible for paying for utilities.

What if I (the homeowner) doesn’t like the tenant?

Our standard lease agreements have six month terms. If after six months the tenant is providing issues we will work together in replacing the tenant.

Ready to start earning ADDITIONAL rental income?

 

Find out if your property is eligible