Construction Completion ADU in Los Angeles

Final Walkthrough

The final walkthrough of your ADU in Los Angeles is your last chance to inspect the completed space and identify any unfinished work before taking possession. Thoroughly check every detail, from the foundation to the finishing touches, both inside and outside.

Punch List

After the walkthrough, note any cosmetic issues like dings, scratches, or areas needing touch-ups, as well as any functional defects or incomplete tasks. Create a punch list that details these items and work closely with your contractor to ensure they are promptly addressed, ensuring your unit meets your expectations and is of the highest quality.

Warranties 

Review and keep all warranties provided by your contractors or subcontractors for various components of your ADU, such as the roof, plumbing, electrical systems, and appliances. Familiarize yourself with the coverage terms, duration, and procedures for making warranty claims in case of defects or malfunctions.

Lien Waivers

Once construction is complete, ensure that all subcontractors and suppliers provide lien waivers. These waivers release any claims to payment against your property, protecting you from legal disputes and financial liabilities related to unpaid bills or contractor disagreements. Obtaining these waivers helps ensure you won’t face unexpected legal or financial challenges in the future.

Inspections and Permits

Final City Inspection

Before you can start using your new ADU, you’ll need to schedule a final inspection with your local building department to obtain occupancy permits. If you hired an all-inclusive company, they will typically handle this for you. However, if you used independent contractors or built it yourself, you might need to arrange this inspection on your own.

During the final inspection, a city inspector will check that the construction meets building codes and zoning regulations, ensuring the safety and habitability of the ADU for future occupants.

ADU Occupancy Certificate

If your ADU passes the final inspection, you will receive an occupancy certificate from the building department. This certificate confirms that your ADU meets all legal requirements and can be occupied or rented out.

Insurance 

Update Your Homeowner Insurance

An ADU is a significant investment that adds value and functionality to your property. It’s important to ensure it is properly insured to protect against unforeseen events like natural disasters, theft, or liability issues. Adequate insurance coverage is essential to safeguard your investment and mitigate potential losses.

Furnishing

Functionality

Consider how you intend to use your ADU and furnish it accordingly to maximize comfort and utility. Whether it’s for guests, as a rental property, or a home office, choose furnishings that align with its purpose. For rentals, opt for durable, easy-to-clean items. If it’s a home office, prioritize comfort and ergonomic furniture. The right furnishings can enhance the functionality and comfort of your ADU.

Style

Make your ADU feel like home by adding your personal style to the decor. Choose furniture, accessories, and colors that reflect your taste and complement the unit’s design. This will help create a welcoming and personalized space.

For design inspiration, check out our blog, “A Beginner’s Guide to ADU Design: Everything You Need to Know,” which offers expert tips and ideas to help you bring your dream ADU to life.

Storage

To keep your ADU organized and comfortable, ensure there are plenty of storage solutions throughout the space. Adequate storage helps prevent clutter, maintains order, and enhances the overall aesthetic appeal of your living area.

ADU Usages

Rent Out Your ADU

Have you thought about using your ADU to generate a steady rental income and boost your property value? Renting out your ADU can be an excellent way to maximize your investment. However, there are some important steps to consider to ensure a smooth and successful rental experience.

• Rental Market Research: Conducting thorough market research is crucial, as it will help you determine competitive and fair rental rates for your ADU and tenant preferences.
• Legalities: Familiarize yourself with the legal requirements for renting your ADU, which includes creating rental agreements, screening potential tenants, and understanding landlord-tenant laws. Consider consulting with a lawyer to ensure your rental agreements are legally sound and provide protection for you and your tenants.
• Tax Advisory: Consider the tax implications of rental income and deductions related to your ADU. Seeking tax advisory services can help you understand your obligations and maximize deductions and credits.

Ready to turn your ADU into a rental income machine? Understanding market rates is critical to maximizing your profits. Check out our definitive guides to ADU rents in San Diego and Los Angeles for 2024!

Receive Guests

Whether you plan to host friends or tenants, your ADU can be a versatile space that feels warm and inviting. You can start by using soft bedding and plush towels to make them feel at home, and provide toiletries such as shampoo, conditioner, body lotion, and soap to ensure their comfort during their stay. You can also equip your kitchen with essential appliances and include pantry items like coffee and tea.

Accommodate Family 

ADUs offer a great way to create extra living space for family members. These units are ideal for adult children moving back home or for relatives staying for an extended visit. “Granny flats” are also perfect for taking care of elderly parents or family members needing extra support. A thoughtfully designed ADU provides added space and flexibility while maintaining privacy and comfort for everyone.

Work from Home

Transforming your ADU into a dedicated workspace can be a game-changer for freelancers, remote workers, and creative individuals. Customization of the environment with ergonomic furniture, optimal lighting, and technology essentials allows you to create a workspace that enhances productivity and comfort, allowing you to focus on your work and efficiently achieve your goals.

Utilities and Bills

How will you handle utilities for your ADU, like water, electricity and trash? This decision depends on several factors, including local regulations, your preferred tenant setup, and personal preferences.

• Separate Metering and Billing: Some ADUs have separate meters, allowing tenants to be directly responsible for their utility usage through individual bills. This approach can promote responsible consumption but requires clear communication and may only be suitable for some tenancy agreements.
• Inclusion in Rent: Alternatively, you can include utilities in the monthly rent. This simplifies billing for both you and the tenant.
• Clarify Your Approach Upfront: Regardless of your choice, clearly outline the utility arrangements in the rental agreement to avoid confusion and ensure a smooth living experience for your tenants.

Sell your ADU

AB 1033

If you’re considering selling your ADU, you might want to look at Assembly Bill (AB) 1033. Before AB 1033, a state-level restriction prevented ADUs from being sold separately from the main property. AB 1033 now allows for this, but it’s vital to understand that it doesn’t directly authorize these sales.

The main point is that AB 1033 gives local governments (your city or county) the authority to determine whether to permit the sale of separate Accessory Dwelling Units within their jurisdiction. In simpler terms, AB 1033 gives them the go-ahead, but your city or county must decide whether to allow them.

The successful completion of your ADU construction marks the beginning of a new chapter for your property. By following these helpful tips and taking some initiative, you can ensure a smooth transition into the post-construction phase and maximize the benefits of your investment. Whether you rent out your ADU, accommodate guests, or utilize it for personal use, your ADU offers endless possibilities for enhancing your lifestyle and financial well-being.

But remember, your journey with your ADU doesn’t end here! At KN Remodeling, we’re here for you every step of the way, even after construction is complete. We’ll help streamline the process, minimize stress, and ensure your ADU functions flawlessly to meet your vision for it.

Ready to unlock the full potential of your ADU? Contact KN Remodeling today, and let’s discuss how we can turn your vision into reality!