Future of ADUs is Unclear
Founder of Spectrum Properties, Nicki Zvik, notes that the foundation of a strong real estate rental space relies heavily on ADUs.
In a memo to staff which Spectrum Properties published, Zvik acknowledged that this past year has been huge for ADUs and that Spectrum has been expanding as a direct result.
"The coming year won't be a cake walk, but I can clearly see the path to a great future for Spectrum Properties," Nicki Zvik wrote.
The City of Los Angeles has been unclear as to how long adding ADUs to existing homes will be allowed. Municipal restrictions on the construction of ADUs is a potential obstacle Spectrum Properties will need to plan for and be prepared to face head-on.
"In 2018, Spectrum Properties acquired and added 20 homes to their portfolio, equating to 20 ADUs," says Zvik, "and we're planning to add 30 more homes this year. Regarding possible restrictions being placed on the construction of ADUs, Spectrum is simply going to have to 'roll with the punches' and develop a plan of action for any potential scenario."
Nicki Zvik also brings up the benefits of ADUs for families and renters alike.
"The addition of an ADU to a home can bring many benefits to just about any homeowner's situation. Whether it's for a family member, a family friend, or to make some extra money, there's an ADU use for everyone," he says.
An extremely common use of ADUs is to provide a private living space for an elderly or disabled family members.
"ADUs are perfect for family members who may need living assistance but still want to feel independent. An ADU can function as a full home with a bedroom, bathroom, kitchen, and living area, while being only steps away from loved ones," says Zvik.
But ADUs usefulness extend beyond housing family members. ADUs can also serve as a welcome secondary income source by renting out the ADU as an apartment or Airbnb.
Nicki Zvik explains, "There is no shortage of renters in Southern California, but there is often a lack of decent or affordable apartment complexes, so many people search for alternatives. Whether they're looking for something more in their budget or a bit more private than a traditional large-scale complex, renting an ADU can often be an attractive option for people in need of a place to live. And this can also generate substantial income for those renting out the space. A win-win."
Zvik goes on to explain the importance of ADUs in Southern California.
"We have a massive population here, and we don't always have adequate housing," says Zvik, "Not to mention the cost of living in Southern California can be tremendous. We have to allow people the option to add ADUs to their homes to help people contend with these issues. I believe in being in the business of helping people in need, and ADUs do just that. They allow for additional space or income that homeowners need at times, and I'm grateful that we can provide that service to them with Spectrum Properties."