You’ve heard about ADUs and you’re curious to know more about what they are, why people want them, and how to go about building or adding one on your property.

We got you!

So, what is an ADU?

Accessory Dwelling Unit

A secondary house or apartment that shares the same lot as the primary house

Attached

Detached (DADU)

Why would someone want an ADU?

Add more density

House a family member

Force appreciation

Generate passive income / reduce housing costs by househacking

Snowbirds / remote work

Other reasons?

Your Top 10 Questions Answered:

Question 1: How much does an ADU cost?

$50k - $250k

Cheapest Option: garage conversion

Plumbing, firewalls are crucial, most expensive

Question 2: What zoning types or areas of Bend allow ADUs?

RL, RM, RS - all residential zoning allows ADUs

Rural ADUs - septic capacity

Water meters

- Every residential zone allows it RL, RM, RS (RH doesn't allow because it allows for high density)

- RR10: all county property allows mobile homes for ailing family members or for farmhand that's working and the farm is producing crops and a certain amount of income

- County doesn't have to allow 1+ units, but cities DO have to allow

- Wildfire bill passed so then county said nothing else could get built until the new wildfire map gets finalized

- Need to figure out what the wildfire risk is before they can allow more building to take place

- Must handle own septic - will need new septic system, will need to ensure water supply can handle it - well will need water pressure test to handle additional household; Avion requires second meter for ADU meaning you need a 2nd mater at the road and get the new line run from the meter to the ADU

Question 3: What's the permitting process like for ADUs?

- Start by calling architect that deals with ADUs

- City is still trying to figure it out too, different answers on different days

- Sewer connection separate or connected to main house

- Main thing is firewall for insurance liability

- Sound separation

- Fees $7-8k, fees are increasing gradually every year

- But city is trying to make ADUs as easy and approachable as possible

- Streamlined permitting process - planning, building, addressing, etc all in one

Call an expert

City: want ADUs, different answers, different days

Streamlined process: plan + build all in one, $8-10k in permit costs

Question 4: How long does it take to build an ADU?

- 1 year to design and get permits

- 1 year to build (should be done in 6 months, but contractors are so busy you need to plan for a year)

- Contractors aren't super stoked to build because they're way smaller, harder to manage subs

Design + permit = 1 year

Build = 1 year

Contractor availability + interest in smaller units can be challenging

Question 5: How do I pay for it?

- Cash

- HELOC

- Conventional is tough + expensive

- Construction loans

Cash

HELOC on primary

Conventional: tough, $$$

Construction: LTR comps, 50% LTV

Question 6: How do utilities work with an ADU?

- Avion water requires a 2nd meter

- Otherwise if it's through the city, only 1 meter, but it may be required to be upsized to get ROW permit to change the lateral out to the street; final plumbing count is what affects it (bathtub = 4 plumbing units, shower = 2 plumbing units)

- Power demands: if you can run gas it helps cut down on what's needed for power

- Power separating - can run through 1 bill or separate it

- Garbage - have tenants set up separately

- Cable/internet - have tenants set up separately

- Gas - need to check if you can get a separate gas meter?

Question 7: Can I AirBnB my ADU?

- Check STR map

- Likely not, it's already been claimed by another neighbor

- Only 1 unit on the property can be STR

- Additional off-street parking requirements for STR - 1 parking spot for every bedroom

- MTR / LTR doesn't require additional parking

Question 8: Can a Tiny Home be an ADU?

- Currently not allowed in Bend

- If your neighbors are cool, you can do it

- On wheels = permitted through DMV

- Insurance coverage might be an issue

- Currently occupied RVs are not allowed in Bend

Currently not allowed

On wheels = DMV permit

Occupied RVs not allowed in Bend, but are allowed in PDX

Question 9: What's the ROI on an ADU?

- Appraisers don't know how to value the ADUs

- Get your own private appraisal to share with prospective buyers

- Make sure appraiser is insured for ADU valuation or standalone appraisals that are not affiliated with a bank

- 450 SF = $200,000, current rents $1,675/mo. LTR but they pay for tenants water

- 5-6 year breakeven

- Build ADU, live in it, rent out main house for higher price and you get a higher ADU; great option for snowbirds