Construction Completion ADU in Los Angeles

Final Walkthrough

Doing a final walkthrough through you ADU in Los Angeles is your final opportunity to inspect the completed space and identify any unfinished work before your contractor hands you the keys. Take your time to exhaustively examine every aspect of the construction, from the foundation to the finishing touches, both inside and outside.

Punch List

After your final walkthrough, note any cosmetic dings, scratches, or touch-ups needed, identify any functional defects, and document any incomplete tasks. Create a punch list that details all the items. Work closely with your contractor or company to ensure they’re addressed promptly, guaranteeing your unit meets your expectations and is of the highest quality possible.

Warranties 

Make sure to carefully review and save the warranties provided by your contractors or subcontractors for the various components of your ADU, including roofing, 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

Upon ADU completion, ensure that the subcontractors and suppliers involved in the construction have provided lien waivers. These waivers release any claims to payment against your property, safeguarding you from legal disputes and financial liabilities related to unpaid bills or contractor disagreements. By obtaining these waivers, you can rest assured you won’t face unexpected legal or financial challenges in the future.

Inspections and Permits

Final City Inspection

Before you take possession of your new ADU, you’ll need to schedule a final city inspection with your local building department to obtain occupancy permits. If you built your ADU through an all-inclusive company, they typically handle this scheduling. However, if you used contractors or built it yourself, you may need to schedule the inspection independently.

Once the city inspector visits your property, they will verify that the construction complies with building codes and zoning regulations, ensuring the safety and habitability of future occupants.

ADU Occupancy Certificate

If everything is ready after the final inspection, you will receive an ADU occupancy certificate from the building department. This certificate confirms that your ADU complies with all legal requirements and can be occupied or rented out.

Insurance 

Update Your Homeowner Insurance

Building an ADU is a significant investment that adds value and functionality to your property. However, like your primary residence, your ADU requires proper insurance coverage to protect yourself financially in case of unforeseen events, such as natural disasters, theft, or liability issues. It is crucial to ensure that your ADU is adequately insured to mitigate potential losses and protect your investment.

Furnishing

Functionality

Consider your ADU’s intended use and furnish it to maximize its functionality and comfort. Whether you plan to accommodate guests, use it as a rental property, or create a home office, select furnishings that align with your needs and lifestyle. For instance, choose durable and easy-to-clean furnishings if renting out the ADU. On the other hand, if you’re creating a home office, consider prioritizing comfort and ergonomics. Selecting the right furnishings is vital to creating a space that meets your needs and enhances your quality of life.

Style

Transform your ADU into a personal haven by infusing your unique personality into the decor and design. Choose furniture, accessories, and color schemes that resonate with your taste and complement the unit’s design. By doing so, you can create a welcoming and visually appealing space that truly reflects you.

Need some inspiration to create a stunning ADU that reflects your unique style? Check out our blog, “A Beginner’s Guide to ADU Design: Everything You Need to Know,” for expert tips, design ideas, and everything you need to bring your dream ADU to life.

Storage

Maintaining a tidy and organized space is vital for a comfortable and stress-free living experience in your ADU.  To achieve this, ensure you have enough storage solutions throughout the unit.  This will prevent clutter and maintain a sense of order. Ample storage options not only optimize the available space but also add to the aesthetic appeal of your living area.

Use the ADU

Rent Out Your ADU

Have you ever considered harnessing the potential of your ADU to generate a steady stream of rental income and potentially increase your property value? Renting out your ADU can be a fantastic strategy to make your investment work even harder for you. However, it’s crucial to consider some steps to ensure a smooth and successful 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 are an excellent solution for creating additional living space for family members. These separate units are perfect for accommodating adult children returning home or hosting relatives visiting for an extended period. Additionally, “granny flats” are an excellent option for those who need to care for elderly parents or other family members who require extra attention and support. With a well-designed ADU, families can enjoy the benefits of additional space and flexibility without sacrificing privacy or comfort.

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!