Rent The Backyard Blog
0 FOLLOWERS
Information about backyard homes. We've created a blog to help you understand the ins and outs of building a backyard home. Rent the Backyard helps you earn rental income by building a home in your backyard. We help you through the entire process. From financing and permitting, to construction and leasing the unit.
Rent The Backyard Blog
2y ago
1. We Own Our Own Prefab Factory
We are one of the few companies that build our own units in our own factory space. This means that, for the end-customer, we are directly in control of costs, timeline, and workmanship. You get wholesale pricing without sacrificing quality or speed, while getting consistent updates about the inner workings of your unit.
2. Timeline
Rent the Backyard is pre-approved at the state level and can build your unit at the same time that we are securing site permits for your project. This parallelizing allows for our projects to be as short as 3 months from sta ..read more
Rent The Backyard Blog
2y ago
At the state level, legislators have been busy making ADUs even easier to build. Below is a summary of the laws that have been passed and what they mean for your build.
AB 3182 (Ting)
The application for an ADU is deemed approved if the city doesn’t act on a completed application within 60 days. This bill also requires that the city do a ministerial (non-discretionary) review to allow for at least one ADU per residential lot.
AB 68 (Ting), AB 881 (Bloom), and SB 13 (Wieckowski)
These bills together do a LOT for ADUs. A few highlights:
No minimum lot sizes to build an ADU
No owner ..read more
Rent The Backyard Blog
2y ago
1. Cashout refinance.
This is just getting a home loan to replace your existing home loan, with some of the cash proceeds used towards the purchase of the ADU. This option oftentimes has low interests rates and quick closing, so is often the ideal choice for a homeowner.
2. Personal or Family Savings.
If you or family members have cash for the purchase of the unit, this can be the easiest and fastest way to finance an ADU. Plus, once the unit is built, you may be able to borrow against some of the value that the unit brings to the property to replenish the savings from which the money ..read more
Rent The Backyard Blog
2y ago
ADUs can add significant value to your property from Day 1. They legally count towards your square footage, bedrooms, and bathrooms. Furthermore, ADUs can be a popular attraction to home buyers, since many families are looking for extra, separate space to house family members. This will help your home stand out in the housing market.
Market Study
Exactly how much the unit can add is certainly a case-by-case situation, but one study done in Portland, Oregon of ADUs with a median size of 487 sf showed that, for homes with ADUs, the ADUs could account for up to 34% of the value! This goe ..read more
Rent The Backyard Blog
2y ago
This is the question we get most often from homeowners and one that we can’t give a definitive answer for: at the end of the day, if you have an onsite installer that you trust, that has a great track record, gives you a firm price, and good timeline, then it may be worth it.
Onsite Issues
The issues with onsite building arise when the above needs/requirements aren’t met. Also, when onsite installers make mistakes, it means issues you need to deal with in your backyard. And, since each project is custom, this can mean that some items weren’t properly scoped, which means a higher price that y ..read more
Rent The Backyard Blog
2y ago
Update: Rent the Backyard has received a pre-approval for our master plan set in San Jose!
Overview
ADUs, (also known as in-law units, backyard homes) have become incredibly popular across the state of California. In fact, starting in 2020, restrictions on ADUs have been significantly relaxed thanks to state laws pushing for their adoption.
Even so, building an ADU is no easy task. We’ll do our best to give a general overview of the rules for building an ADU in San Jose.
So, where to start? San Jose offers great resources to homeowners outlining most of the issues that may arise ..read more
Rent The Backyard Blog
2y ago
ADUs are fantastic investments to add to the backyard. The math behind these investments is exceptional and can be 3-4x a more profitable investment per month than buying a new home at a fraction of the price.
How? The logic is that you already have paid for the land in the backyard, but it's largely underutilized. Below is a sample worksheet showing you what your backyard home could make in the Bay Area.
What about renting out the unit?
A professional property manager can handle everything from finding the tenant to collecting rent to dealing with any tenant issues in case the ..read more