Housing costs are only rising and space to build new homes are at a premium. The practice of adding standalone, rentable units to existing houses may be a good solution.
In California, state law changes in 2017 removed some of the feed from utilities for backyard units and removed the requirement to have an extra parking space.
In Los Angeles, permits for backyard units grew after a municipal team built a prototype. 400 units were approved for construction in 2016, but that number jumped to 1,598 in 2017.
Still, despite these advances, the market would need an estimated 500K+ units over the next 15 years to keep up with the demand.
More Convenient Backyard Units
Rent the Backyard, a new startup based in the Bay Area, is making it easier to build these units. The company will cover the building process, costs, and maintenance, receiving a portion of the rent in return. This saves homeowners the headache of getting permits and paying a builder. After 30 years, the homeowners will completely own the unit.
Burleigh, the startup’s CEO, commented how many homeowners are interested in building and renting out backyard units, but found the process too taxing and complicated. Rent the Backyard takes the risk away from the equation.
To build the units, the startup is working with Node, a company that builds modular and sustainable homes in factories. This way, the components can then be assembled easily in the homeowner’s backyard. It can take only 1.5 weeks to for the company build a unit.
An Affordable Rental Option on the Market
The backyard units will essentially be small studios with a kitchenette, bathroom, and living room area. They will go for fair market prices for their sizes. By renting out these units, the startup may be able to help lower the Bay Area’s rental prices.
Rent the Backyard is starting by focusing on the Bay Area. The high rents in the area make backyard units an appealing option for both renters and homeowners looking for extra cash to pay off their mortgages.
Reference:
https://www.fastcompany.com/90386799/this-startup-wants-to-put-a-free-tiny-house-in-your-backyard
