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Updated almost 3 years ago on . Most recent reply

User Stats

55
Posts
17
Votes
Victor G.
  • Contractor
  • San Diego, CA
17
Votes |
55
Posts

ADU Build out in SoCal: Should I go Gas or Just Electric ??

Victor G.
  • Contractor
  • San Diego, CA
Posted

I'm building out an ADU (1bed/1bath w/loft) from a single family house with an attached large 2 car garage in a B+ class neighborhood in San Diego. The existing house has both gas & electric utilities. I'm torn whether to install both gas & electric utilities or just install electrical only. This would require the utility company to install a separate meter for each utility (electric & gas). I'm trying to weigh the cost for the construction vs the rental desirability of the ADU once completed. My choice would affect the selection of the following items: kitchen range, tankless water heater, clothes dryer as well as construction materials. Here are the pros and cons:

PROs:

- The cost to buy gas appliances are more inexpensive than electric appliances; 

-the cost to run gas is substantially cheaper than electric as well. For example, using an electric dryer will cost on average $40/month more than using a gas dryer.

-A & B Class Tenants tend to prefer gas for cooking and heating (although SoCal has very mild winters). Could be a deal breaker for some prospective tenants.

CONs:

- installation of gas pipes and gas lines can increase the construction budget quite a bit. 

-requires a separate meter for gas installed (if units are billed separately).

-Another inspection required other than electric inspection.

-the idea of having one more utility to worry about breaking in my investment rental i.e. gas leak .

Let me know your thoughts. Thanks.


  • Victor G.
  • Most Popular Reply

    User Stats

    299
    Posts
    172
    Votes
    Maxwell Ventura
    • Real Estate Agent
    • San Diego, CA
    172
    Votes |
    299
    Posts
    Maxwell Ventura
    • Real Estate Agent
    • San Diego, CA
    Replied

    @Victor G.

    Even in a B+ neighborhood here in San Diego, I can't see gas vs electric being the deal breaker for a tenant who's going to be moving into an ADU. Even a nice one. I'd choose the easier option.

    If you can separate the electric meters and have tenants pay their own electric that may be the way to go.

    Also consider going solar for the entire property, upping the rents & marketing "free electricity" 

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