What is the increase in property taxes when building an accessory dwelling unit in Mountain View?

New Avenue is building a luxurious ADU in Mountain View, California. This unique ADU features a basement with an activity room, a utility room, and a half bath. The main floor has a bedroom/living area, a kitchen, a full bathroom, and a laundry area. Outside, there is a dipping pool, and outdoor living area with a fire pit, and a dining area.

The homeowners plan to use this space for loved ones in the near future. Later, they will rent it out and bring in monthly income.

How much does the property tax increase when you add a backyard cottage in Mountain View?

We generally see a property tax increase of one-half of one percent of the cost of the project. Design, permitting, engineering, and construction for this project totaled $657,356. Once the project is complete, the homeowners expect to see a property tax increase of around 3,286.78. The main home will not be reassessed when the ADU is assessed.

The tax increase will be no problem for the homeowners. Comparable homes in the area rent for at least $28,800 per month. The amount they will save on housing for their family member will negate any property tax increase. If they choose to rent the unit out in the future, it will continue to pay off for the rest of its lifetime. The quality design and construction will last 100 years or more.

New Avenue is a full-service design/build firm with the highest standards in the industry. The cost of the ADU above includes custom design, engineering, permitting, all site work, all red tape, construction, and project management. New Avenue creates custom homes, ADUs, and remodels.

Get your questions answered by scheduling a free Q&A call with one of our experienced professionals today. Then, when you’re ready to begin, we’ll introduce the design/build team that’s right for your project.