What’s Actually Included in ‘Turnkey ADU’ Packages
“What’s Actually Included in ‘Turnkey ADU’ Packages (And What’s Not).” - Seth Godin
For homeowners diving into the world of Accessory Dwelling Units (ADUs), few phrases are more appealing than 'turnkey.' It evokes a sense of simplicity — that all-in-one package deal where the builder handles everything, and all you have to do is wait for the keys.
But what does 'turnkey' really mean in the ADU industry? Unfortunately, it’s not a regulated term. Different companies use it differently, and that can lead to some costly surprises if you don’t ask the right questions upfront.
The Dream vs. the Reality
To most homeowners, a turnkey ADU sounds like a done-for-you solution: permits handled, construction completed, and a fully finished unit handed over at the end of the process — ready to live in or rent out. In reality, many so-called 'turnkey' ADU builders exclude key elements such as utility hookups, landscaping, furniture, or even appliances.
Case in Point: The Mitchells of Sherman Oaks
Sarah and David Mitchell were drawn in by a glossy ad promising a fully built 1-bedroom ADU for $179,000. They signed with the company, assuming everything was covered. But midway through, they discovered that connecting the sewer line would be an extra $11,000, permit fees were not included ($6,500), and a required electrical panel upgrade added another $9,000. Their final cost was over $200,000 — and that didn’t include landscaping or interior furniture.
What a True Turnkey ADU Should Include
A genuinely comprehensive turnkey package should cover the following:
- Site survey and feasibility assessment
- Architectural design and structural engineering
- Permit acquisition and city communications
- Full construction, including foundation, framing, roof, windows, and all finishes
- Utility trenching and connections (water, sewer, electric, gas)
- Interior finishes, including cabinetry, countertops, flooring, and lighting
- Basic appliances, such as a range, hood, water heater, and HVAC system
- Final city inspection and certificate of occupancy
Items Commonly Excluded (Read the Fine Print!)
- Landscaping, driveways, or fences
- Exterior lighting and security cameras
- Furniture, blinds, or tenant-ready amenities
- Site prep (e.g., removing trees, leveling land)
How to Protect Yourself
Before signing anything, ask for a line-by-line scope of work. Review what’s labeled as 'included' and 'excluded.' Push your builder for transparency. If something isn’t clearly stated in writing, assume it’s not part of the deal.
Also, ask about change order policies, build timelines, and warranty coverage. Many homeowners get caught in delays because of ambiguous contract language.
Final Thought
A turnkey ADU can absolutely save you time and reduce stress — but only if you know exactly what you’re getting. Go in with eyes wide open, and your 'turnkey' experience will truly feel seamless.
