ADU Condos - How does it work?

AB 1033 is increasingly being implemented in municipalities across California, and that means homeowners can opt to 'condotize' their ADUs and sell them off as a real home. We know from other states than nearly 50% of ADUs are sold off instead of rented - and for very good reasons. First, you avoid the hassle of property management. More important, we often see a higher return on investment by selling the ADU upon completion and then investing the proceeds, typically at least $100,000 more profit.

But how would condotization work? The answer lies in creating a "Cloud Condominium covering all the units on your property. This is essentially a Homeowner's Association but without any meeting, dues or nonsense. You can submit this to your local municipality when you submit permits for the ADU or later. Typically, there is an application and fee, and then you include the organizing document and property map (provided by your architect or permit specialist).

Learn more and download Cloud Condo templates at

https://www.aduloans.net/post/adu-condos