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What’s One Drawback of an ADU? (And How to Avoid It)

Accessory dwelling units, also known as ADUs, are becoming an increasingly popular solution for homeowners looking to generate rental income, increase property value, and create additional living space on their existing lot. Whether it’s a garage conversion, basement apartment, or detached guest house, an ADU offers numerous benefits. These include affordable housing options for family members, flexible living arrangements, and even the opportunity to save money on utility bills with energy efficient appliances.

Understanding the Key Drawback: Utility and Infrastructure Delays in ADU Construction

However, as with any major construction project, building an ADU comes with challenges. While most people focus on the benefits, it’s just as important to understand the potential pitfalls before getting started. So, what’s one drawback of an ADU that often surprises homeowners? The answer is utility and infrastructure delays.

Utility coordination can be one of the most time-consuming and costly aspects of ADU construction. If not managed properly, it can derail your timeline, increase your construction costs, and cause frustration throughout your project. In this article, we’ll walk you through how utility issues can impact your ADU project, why they occur, and how a knowledgeable design-build team like Golden State ADUs helps you plan ahead.

Why Utility and Infrastructure Delays Matter in ADU Construction

When building an ADU, you’re essentially adding a small home to your property. That means it requires the same utility services as your primary residence, including water, sewer, and electricity. These utility connections are not always simple or straightforward. Depending on your property’s layout, local zoning laws, and the requirements of your utility provider, your project could face long delays and hidden costs.

Homeowners often assume that once their ADU plans are approved and permits are issued, construction can begin immediately. Unfortunately, that’s not always the case. Many local governments and utility companies require their own review and engineering process before they allow your project to connect to public infrastructure. This includes trenching plans, meter upgrades, and in some cases, transformer installations.

Without early coordination, you might find yourself waiting three to six months, or longer, before you can break ground on your accessory dwelling unit ADU.

Common Causes of Utility Delays in ADU Projects

Backlogged Utility Providers

PG&E, SMUD, and other California utility companies are frequently overwhelmed with service requests. Due to labor shortages, wildfire recovery, and increasing demand for new housing options, their timelines for new connections can stretch well beyond homeowner expectations.

Sequencing Conflicts With Permits and Utilities

Here’s where things get tricky. Some cities won’t approve your ADU utility permit without an official address for the unit. But the utility provider won’t assign an address until they’ve reviewed and approved your ADU plans. This chicken-and-egg problem causes unexpected back-and-forth between agencies and extends your timeline.

Site-Specific Conditions

Not all lots are created equal. If your property sits far from the public utility line, is on a slope, or includes older infrastructure, your ADU project may require significant upgrades. That might include new electrical panels, trenching through sidewalks, or even transformer upgrades. These factors impact your construction costs and schedule.

Zoning Regulations and Building Codes

Local zoning laws and building codes can affect how and where your accessory dwelling unit connects to utilities. For example, zoning regulations might require separate meters or limit how close your unit can be to utility easements. Understanding local laws and how they impact your specific lot is essential.

How Utility Challenges Impact Your Budget and Timeline

Extended Project Timelines

If you’re planning your ADU as a way to generate rental income, delays in utility work can push back your expected cash flow by months. A project that should take 6 to 9 months might stretch into 12 months or more, especially if utility coordination was not factored into the original ADU plans.

Unexpected Construction Costs

Utility providers may require you to pay deposits for engineering work, often ranging from $2,500 to $5,000. If your existing space requires upgrades to meet current building codes, costs can climb quickly. We’ve seen ADU projects where utility-related expenses added $15,000 or more to the budget. If you’re not prepared, these expenses can affect your mortgage payments or financing strategy, which may include exploring financing options such as cash out refinancing or construction loans.

Permit Revisions

Sometimes, utility changes force design revisions. For example, if PG&E requires your panel to move or a trench to reroute, you may need to revise your plans and resubmit them to your local jurisdiction. That means more fees, longer timelines, and additional back-and-forth with building officials.

Complications With Existing Structures

If your ADU is a garage conversion or basement apartment, utility tie-ins might require altering structural elements or digging through driveways or landscaping. These adjustments increase both the labor costs and ongoing maintenance costs once the project is complete.

Why Homeowners Are Often Unprepared

One of the biggest reasons utility delays catch homeowners off guard is because they’re not often discussed up front. Many design firms and contractors focus on the fun parts, the layout, finishes, and how much extra income your ADU could bring in. But understanding utility logistics is just as critical to the success of your project.

Homeowners are also unaware of how local governments and utility companies operate. These agencies don’t coordinate with each other automatically. It’s up to your ADU project team to manage communication, sequence approvals correctly, and stay on top of paperwork. Without experience in navigating these legal requirements, even a small mistake can cause major delays.

How Golden State ADUs Helps You Avoid This Drawback

At Golden State ADUs, we’ve completed over 100 accessory dwelling unit projects throughout Sacramento and Northern California. Our team understands how to navigate the complex web of local regulations, building codes, and utility company procedures that can delay your project if not handled early and carefully.

Early Feasibility Analysis

Before you commit to a design, we perform a feasibility study that includes an infrastructure review. We identify your panel capacity, available utility lines, and the most efficient way to connect your accessory dwelling unit ADU to power, water, and sewer.

Proactive Utility Coordination

We begin conversations with PG&E, SMUD, and local agencies as soon as your ADU plans are drafted. This allows us to flag issues early and incorporate utility requirements into your final design.

Transparent Pricing

We include allowances for utility connections in your project estimate so you’re not blindsided later. If additional work is required due to zoning rules, existing space limitations, or outdated systems, we’ll present options before moving forward.

End-to-End Project Management

From permitting to construction and final inspections, our team handles all the moving pieces. That includes scheduling trenching work, applying for necessary permits, and submitting engineering plans to utility companies. We’ve built strong relationships with local governments and service providers, allowing us to move faster and more efficiently than firms unfamiliar with California’s unique regulatory landscape.

Additional Drawbacks of Building an ADU (And How to Manage Them)

While utility issues are one major drawback, they’re not the only challenge you may face during ADU construction.

Construction Costs Can Climb

Labor costs and building materials have risen steadily across California. Without a fixed-price contract, many homeowners experience budget creep. At Golden State ADUs, we offer predictable pricing based on detailed scopes of work and recommend using high quality materials to avoid costly repairs down the road.

Permitting Complexity

Even with new state laws making it easier to build ADUs, many cities have their own interpretations of zoning laws. Some require additional hearings, neighborhood notifications, or site-specific adjustments. We manage these issues so you don’t have to.

Living Space Limitations

Depending on your lot size and existing structures, your ADU may need to be compact. Without careful planning, this can result in a unit that feels cramped. We use smart design strategies like open floor plans and natural light to maximize usable, functional living space, ensuring your ADU provides the extra living space and own space needed for tenants or family members.

Ongoing Maintenance Responsibilities

Like any home, an ADU requires regular maintenance. From plumbing to utility bills, you’ll need to factor in these ongoing costs, especially if you plan to rent out the unit or provide it as housing for adult children or other family members.

Why Building an ADU Is Still Worth It

Despite the drawbacks, building an accessory dwelling unit ADU is one of the most cost effective ways to improve your property’s potential. It allows you to:

• Generate rental income
• Increase property value
• Support adult children, aging parents, or other family members by providing them with their own space
• Create a sustainable living space with energy efficient appliances
• Provide affordable housing options in your own community
• Maximize your existing space and reduce your carbon footprint

Whether you’re looking to create additional living space for your primary residence or generate extra income from the same property, an ADU offers long-term value, especially with the right planning and support.

Frequently Asked Questions

How long does it take to connect utilities for an ADU?

It can take anywhere from 3 to 6 months or more, depending on your location and the utility provider. Starting utility coordination early can significantly reduce delays.

Can I use the same utilities from my main house for the ADU?

Sometimes. Depending on your city’s zoning regulations and building codes, separate meters or an own entrance may be required. We assess this during your design phase.

How much does utility work typically cost in an ADU project?

Utility costs vary, but homeowners should budget $5,000 to $20,000, depending on trenching, panel upgrades, and other factors.

Will I pay more in property taxes after building an ADU?

Yes, your property taxes may increase based on the assessed value of the new construction. We can help you estimate how much based on your ADU’s physical form and size.

Final Thoughts: Build Smarter With Golden State ADUs

So, what’s one drawback of an ADU? Utility and infrastructure delays are among the most common and frustrating challenges homeowners face. But with the right team, that drawback becomes manageable.

At Golden State ADUs, we specialize in full-service ADU construction, from initial concept to completed unit. We understand the legal issues, zoning laws, and local regulations that affect your ADU project, and we know how to prevent costly surprises. Whether you’re considering a garage conversion, detached guest house, or basement apartment, we’ll help you design a functional living space that adds value to your property and enhances your lifestyle.

Ready to build an accessory dwelling unit on your property? Let’s make it simple, predictable, and profitable.