Property tax increase when building an accessory dwelling unit in Oakland
New Avenue designed an ADU for a homeowner in Oakland. The homeowner requested a full bathroom with a bathtub, a kitchen, a bedroom, laundry facilities, and a living area large enough to use as both a living room and an office.
With any addition to your property, there will be a tax increase. Here’s what that means for this property in Oakland.
Adding an ADU generally results in a property tax increase that’s equal to one-half of one percent of the total cost of the project. For a project like this, with a total cost of $350,000, that means an annual tax increase of $1,750. (That’s $145.83 per month.)
Adding an accessory dwelling was a smart move for this homeowner, who plans to rent the property out. The ADU will bring in at least $2,000 per month in rental income. That’s more than enough to cover the mortgage and the tax increase. (A two-bedroom ADU will bring in $3,300 each month, and a three-bedroom ADU will bring in $4,500.)
Bringing your home up to date
With over 750 projects under our belts, we’ve noticed that most homes need four things:
1) An open kitchen/living area
2) A new master suite
3) Whole-house sustainability upgrades
4) An accessory dwelling (We find that a two- or three-bedroom ADU is the most beneficial.)
By adding an ADU, this Oakland homeowner is taking a major step toward creating a home that will serve its owners for generations.
New Avenue is a turnkey solution to making all this happen for your home. We use real data from 750+ completed projects to provide accurate estimates and timelines, and we have the only transparent pricing in the industry. We create custom ADUs, custom homes, home transformations, and compounds with a net-zero-energy standard.
We handle every aspect of your project, including design, permitting, red tape, engineering, site work, and construction. We guarantee we can deliver on budget with an extraordinary professional standard.
Click the button to get in touch. We’ll answer all your questions in a free phone consultation. Then, when you’re ready to start your project, we’ll introduce the design/build team that’s ideal for your project.
