Recently a client of ours asked us to look at a 5 bedroom 3 bath house. The seller was marketing the property as a house with an ADU that one could rent for $1200/m and when added to the home rent of $2800, the total projected rent was a very desirable $4000 per month gross income.
I wasn't certain that one could easily turn a house into a duplex but the seller said, "sure it's unincorporated Pinellas County and without the city rules of St Pete and Clearwater, this would be the place to do it." Before going further with an offer I googled "Pinellas County" and "ADU". You could try this for any county and likely find similar requirements.
At first I thought this seems to be a great solution to the lack of affordable homes for people in our community and at the same time my group of investors could profit well on the new trend. Then I read down the list and found the "stopper" for this buyer and my other investors. The primary dwelling must be owner occupied!
I certainly understand why this is the case, otherwise countless investors would be turning single family neighborhoods into duplexes. One might picture cars on the lawns, double the trash out front for each trash day, multiple pets at the property and other such things that would be common with 2 families living at a residence compared to a single family.
In Pinellas County, Florida, accessory dwelling units (ADUs) must meet the following requirements:
- Size: ADUs cannot exceed 750 square feet. Larger ADUs may be approved with a Type 2 review.
- Number: There can only be one ADU per parcel of ownership.
- Occupancy: ADUs cannot have more than two people per bedroom, plus two people in a common area. The total occupancy cannot exceed 10 people.
- Utility connection: ADUs cannot have a separate metered utility connection.
- The primary dwelling must be owner-occupied.
- All setbacks and lot coverage provisions must be met.
- The ADU must match the architectural style of the existing home.
- The ADU must have two means of egress.
- The ADU must have an extra parking space on the property.
St. Petersburg - Make sure to submit a "Homeowner Affidavit for Accessory Dwelling Unit"
If you are looking to owner occupy a home and like the idea of a tenant helping you with your mortgage, this ADU trend could be a great plan for you.
Keep in mind Florida has stricter building codes than most states due to our windstorm risk. Hire a General Contractor so your ADU roof won't blow away and cause damage to humans, pets or other structures. Make sure you are financially ready for the cost of building an addition that includes a bathroom and kitchen area.
According to the county site this ADU structure could be attached or detached to the main house as long as it meets the setback requirements. If you are considering an ADU within city limits or in an HOA check with those authorities as well!
If you'd like to work with a team of Realtors who research investments and provide a full service for buyers and sellers, guidance on fix ups, tenant placements as well as top quality management, please give us a call we look forward to helping you with your Tampa Bay Area Real Estate Investments. - John Birch Broker
