Frequently Asked Questions

Does Otto ADU offer a warranty?

We offer a 1 year warranty on all of our ADUs. For finish materials, we provide all manufacturer warranties directly to you at the end of the project.

If I convert my garage do I have build new parking spaces?

No. New ADU laws do not require you to provide parking for the new unit or replace any parking lost to the garage conversion. If you want covered parking we recommend adding a carport.

Will my property taxes go up?

Yes, but usually only by a couple hundred dollars a year. When you build an ADU, the city will conduct a blended assessment, which does not affect the value of your existing property, but instead assesses the cost of the construction and adds that to your original property value. Your taxes will only increase by 1.1% of the total cost of the improvements.

Can I rent out my ADU on Airbnb?

Yes, but only as a long-term (>30 day) rental. Short term rentals are not allowed for newly constructed ADUs.

Can I build an ADU on my multi-family property?

Yes, you can build 2 detached ADUs on an existing multi-family property. You can also convert existing space to add even more ADUs — through converting existing space you can add up to 25% of the total existing permitted units (1 new unit for every 4 existing units).

How much will a garage conversion increase the value of my home?

By a lot! Based on data from April 2019, the average value premium for a garage-only conversion is $158,098, or 18.68% value premium over properties without ADUs (Accessory Dwelling Unit, or ADU for short). For this research we surveyed 183 homes that were sold in Los Angeles after an ADU was built, and compared them to sales of similar homes without ADUs. The ADU premium is the average difference between the two. Most homes in our study sold within 3 months of the ADU’s occupancy approval.

Do you also build JADUs?

Yes! The minimum amount of space we need to convert into a studio or one bedroom ADU is around 300 square feet. The JADU can replace any existing space attached to your home.

Does Otto ADU provide financing?

No, Otto ADU is not a lender but we can connect you with companies that provide ADU financing. Otto's project planners also are well versed in ADU financing options so they can help point you to the best option.

Which cities does Otto ADU work in?

Otto ADU currently operates in Los Angeles, Pasadena, Burbank, South Pasadena, Culver City, Glendale, Hawthorne, Santa Monica, and unincorporated LA County. We are always looking to expand our service area!

Is Otto ADU a contractor?

Yes, we hold a California Contractor's License (#1081287). On individual projects, Otto works with licensed contractors who pull the permits and perform the work under their license.