Opinions on San Diego “Tiny Houses”

[Cathy S.]

Just saw this article saying that San Diego city just approved the construction of “tiny houses” in people’s backyards yesterday.

See article here: https://www.sandiegouniontribune.com/news/politics/story/2020-07-21/san-diego-approves-regions-first-tiny-houses-law-to-help-solve-housing-crisis

I've never heard of something like this, but does anyone have any opinions on this as a future way to generate more cash flow? I guess to me this sounds like another way to add on an ADU to your property.

Was just intrigued and looking forward to hearing everyone’s thoughts!

[Andy Eakes]

Hey Cathy! I saw the article as well. With the housing crisis here, San Diego has eased restrictions on adding an ADU to your property. I met the a General Contractor in San Diego recently who told me you can ADUs as big as 1,200 sq ft to your property. When built correctly, that can be an extra 4 bed, 2 bath unit (I've seen it in San Diego before). With rent being as high as it is here, that is potentially a huge amount of extra cash coming in every month. If you have a property with alley access too, that is a great separate entrance for the ADU. But adding an ADU can be expensive and time consuming.

So by allowing people to tow in their tiny house to your property, you aren't having to pay for any construction costs, and usually, if the tiny house is theirs, the tenant will pay for all of the repairs to their tiny home. Whatever they pay to you for rent would all go into your pocket. Sounds pretty good! I would be curious to see if there are going to be any regulations as far as requiring permits. But for now, this seems to be the solution for people in San Diego who want to create the extra cash flow that comes from an ADU, but can't afford to build an entirely new building.

I hope that helps!