How much do property taxes increase when building an accessory dwelling in Oakland?
New Avenue designed a one-bedroom ADU for a couple in Oakland. They needed a comfortable, accessible home for their mother. The accessory dwelling includes a spacious bedroom, a bathroom with accessible shower, and an open kitchen/living area. There’s also an overhead loft for storage.
How much will taxes increase when adding an accessible one-bedroom ADU?
Whether you build an ADU in your backyard or your basement, the property taxes will go up. The main home is not reassessed when the ADU is complete.
In California, property taxes tend to increase by one-half of one percent of the total cost of the project. In this case, the total cost was $470,000. That resulted a tax increase of $2350. The main home is not reassessed at the time of ADU completion.
The increase is easy to take care of. A one-bedroom ADU can rent for around $28,800 per year. That means the family will save considerably more than they spend by building the ADU and having the owner’s mother live in it. If they decide to rent the accessory dwelling out in the future, the income will help pay for the ADU and other needs such as medical care, education, retirement, and travel.
New Avenue is a complete solution for accessory dwellings, remodels, additions, and custom homes. The cost includes custom design, permitting, engineering, red tape, all site work, and construction. We handle every aspect of the project on budget with total transparency and professionalism.
Schedule your free call today to have all of your questions answered.
