A Guide to Building & Profiting From Prefab ADUs in LA

Tacos & Tequila


Thanks to a new state law, California homeowners now have the ability to build accessory dwelling units (ADUs) on their property — so long as they adhere to certain guidelines. This approval stems from the need for more housing units in a market where a lack of supply has driven up rental prices, but it also means that we can now customize and construct epic prefab homes — which have grown increasingly trendy in the modern real estate market. It’s unknown territory for many, so we’ve curated a thorough guide for building an ADU and how to profit from one in the long run. Talk about a win-win.

First off — why build an ADU?

The reasons are plentiful, but we’ll keep it brief. One major reason to build a prefab home is to earn an alternative stream of income. Since ADUs are often detached from the main house, the extra space (which varies from 600 to 1,200 square feet based on your location in LA) can be rented out to generate additional cash flow for homeowners. Not into the idea of someone living on your property? Adding an ADU will ultimately increase the selling price of your home in the future.
Another key reason for building an ADU — which you can imagine has gained serious momentum in the last few months — is the need for extra living or workspace. As many people continue to work from home, there’s a pervasive desire to build an idyllic office space that allows for prime productivity. And what’s better than a beautifully designed prefab structure, secluded from the bustle of your main house? Whether you use it as an office, gym, art studio or guest suite, prefab homes offer up boundless possibilities that modern-day families both want and need.

Secondly — how do I build one?

You’re probably wondering, how do I build an ADU for my property while complying with all recently passed regulations? Lucky for you, there’s a local prefab company called Cover that has developed a new tool that tells LA homeowners exactly what they can build in their backyards. No more hurdles of hiring someone to navigate local zoning and property laws. Cover takes care of research, design, permitting, manufacturing, project management and installation. Simply put, they’re a jack of all trades in the prefab world.
But that’s just one example of a company making the ADU building process totally effortless. We’re also huge fans of Plant Prefab, which is the first prefabricated home factory in the U.S. that’s dedicated to sustainable construction, materials, processes and operations. Their LivingHome 10 model is a must-see, which packs all the amenities of home into just 496 square feet — making it the perfect addition to nearly any property. The list goes on, and our team even compiled a list of stellar prefab companies back in 2018 — which you can check out here.

Get Tacos & Tequila Direct to Your Inbox


Each member of our team is uniquely qualified with the expertise, relationships and focus to represent buyers, sellers, developers, investors, business and entertainment managers, and all others interested in the opportunity to be a part of the Los Angeles real estate dream.

Contact Us

Follow Us on Instagram