Hawthorne Studio ADU Generates Rental Income

Hawthorne, CA
1 bath
400 sq. ft.

Southern California homeowners know that building an ADU can generate over $2,000/month in rental income, while also adding long-term equity value to the property. One Hawthorne homeowner wanted to turn her attached garage into an income stream by converting it into an ADU and renting it out. Revival Homes was happy to bring her vision to life.

Turning a Storage Space into Cash

One in three homeowners use their garage for storage, rather than for parking a car. This percentage is likely higher in Southern California — after all, there’s no snow and little rain to shield your car from. This homeowner parked her car in her driveway, and recognized an opportunity to generate income by turning storage space into a home for a renter.

Although the garage was only 400 square feet, this still provided enough space for a comfortable, well-designed studio apartment. Additionally, the homeowner was able to maximize cost-efficiency by converting a garage into an ADU, rather than by building entirely new square footage. Revival Homes informed the homeowner that when you convert a garage into an ADU, there are no minimum setback requirements, and that the requirement to install solar panels on the ADU doesn’t apply to conversions. 

Typically, the “hard costs” of construction for garage conversion ADUs are 20-30% lower than for a new build. While this project required upgrades to the garage’s foundation, electricity, insulation, and heating/cooling systems, recycling an existing structure ultimately reduced the cost of the project.

Designing the ADU

The homeowner sought to make the ADU roomy and convenient, despite having a limited amount of space to work with. A Revival Homes partner contractor ran with her vision, building an ADU that makes efficient use of space while also being easy on the eyes. The ADU’s washing machine is positioned in the kitchen next to other appliances, while the living room space blends together with a sleeping area. The ADU was designed with a separate entrance, bathroom, and kitchen area, providing privacy for both the homeowner and the future tenant. 

While the permitting process is never easy, Revival Homes makes it easier by partnering with design-build general contractors who are ADU experts. They’re experienced in taking ADU projects through the permitting process, avoiding setbacks and hangups that cause other projects to get stuck in permitting limbo. In this case, the homeowner’s permit application was approved relatively quickly, allowing the project to move on to construction.

The Finished Product

Today, the ADU is home to a traveling nurse, generating rental income for the homeowner that helps her pay her mortgage. The homeowner is happy to have some extra money in her pocket, as well as the option to invite a family member to live in the ADU down the road.

Revival Homes Has the ADU for You

Revival Homes is California’s one-stop ADU shop. We partner with our customers through every step of the process: project planning, site plan development, permitting, and construction.

Ready to get your ADU project started? Book your free consultation with a Revival Homes ADU expert today!

Ready to get your ADU started?

Our ADU experts will help you plan your project, find affordable financing options, and match with top contractors. Get in touch with us today!