I’m in escrow on a fully leased but under-market triplex in Orange County (2/1, 1/1, 1/1). It has a detached 4-car garage (~600 sf), and I’m thinking about converting the garage into an ADU to boost cash flow.
My only hesitation is parking. If I do the conversion, the property would be left with one non-garage parking spot plus street parking right in front of the building (maybe 20 feet away).
For people who own or manage multi family rentals: how big of a deal is losing on-site parking when it comes to renting and tenant quality?
Converting garage in triplex to adu – will tenants be upset
byu/sweetstew12 inrealestateinvesting
Posted by sweetstew12
7 Comments
Depends on the area but OC tenants are pretty spoiled when it comes to parking – losing 4 covered spots for just one uncovered is gonna be rough. You might end up with higher turnover and having to lower rents to compensate, which could eat into that extra ADU income
City prolly wont permit it
Is garage access included in the lease?
parking is a major factor in my area
Of course it’s a big deal. Street parking probably sucks around there. Put yourself In their position. You already know it’s a messed up. You just want people to make you feel better. Watch they all stop paying rent because you wanted to squeeze out a few bucks and make their life harder. Happy holidays!!!
Every working adult needs autonomy in coming and going. Two people can share a bedroom for a while but being late for work because you needed someone to move their car is usually a deal breaker and that person will be gone after not too long. Same with coming home after a 12 hour day and having to circle the block to find a place to park. That’s miserable.
The number of guaranteed spots that are not blockable by other cars is basically your multiplier for income for this kind of property. Only people who have no other choice will pick a rental with no parking.
All it takes is one complaint to the city and all that effort will be unwound if it’s not permitted, which it likely isn’t.