How much will my property tax increase when I build an ADU in Emeryville, CA?
New Avenue converted a garage in Emeryville to a one-bedroom apartment. While the property taxes did increase, the upgrade added exceptional value to the property—value that exceeds any increase in property taxes.
Property tax when adding a one-bedroom ADU in Emeryville
We tend to see a property tax increase equal to one-half of one percent of the total cost of the project when an accessory dwelling like this is complete. A property in Emeryville assessed at $500,000 costs around $6100 per year in taxes. Building an ADU similar to the one we did here, a project valued at $375,000, generally results in an increase of $1,875. That’s $156.25 per month. The main home is not reassessed when an ADU is added.
A one-bedroom ADU with a bathroom and kitchen can bring in around $2,000 per month in rent.
The rental income is enough to easily pay for the tax increase and the ADU itself. Once the ADU is paid off, the rental income and appreciation in value can mean a lot to a homeowner. Some owners use the money to pay for their own homes. Others use it to start a business, travel, or pay education expenses. An ADU like the one we built in Emeryville continues to pay off for decades.
With over 750 completed projects, we understand that most homes need four things to bring them up to date:
A new master suite with bedroom and bathroom
An open kitchen/living area
Whole-house sustainability updates
An accessory dwelling unit for more space or more income
Our experience has also taught us that bigger is better when it comes to adding an ADU. A two-bedroom accessory dwelling can bring in $3,300 per month in rent, and a three-bedroom accessory dwelling can get $4,500 per month. When you’re investing in your property, a bigger unit will bring bigger returns.
At New Avenue, we focus on ADUs that are custom designed for family use. You can build an ADU for your own family to enjoy, for your loved ones to live in, or for rental income. The cost of an ADU like this is around $375,000, depending on your property and your specific needs.
That cost includes custom design, engineering, permits, California red tape, all the site work, construction, and a net-zero, all-electric standard. And we guarantee we can deliver on budget with a professional standard you can trust. Our high standards ensure transparency throughout the entire process.
Schedule your free call today. An experienced, licensed professional will contact you and answer all your questions.
