Table of Contents
It’s estimated that the US needs nearly four million new homes to fully meet consumer demand.
With houses in short supply, many people are choosing to build an accessory dwelling unit on their own property.
If this is something you are considering, you may not be completely sure whether it’s the right move to make. We hope that this article will be able to help you make your decision.
Read on as we look at some of the key benefits of building an ADU.
What is an Accessory Dwelling Unit?
An accessory dwelling unit, or ADU, is a secondary residential building that shares the lot of the main dwelling. In other words, it is a smaller house or apartment built in the grounds of an already existing home.
Zoning laws in many parts of the country allow for the construction of accessory dwelling units, provided that they meet certain criteria. These criteria can include the size and style of the building and the distance from the main property. You should always check your local zoning laws to find out what the local rules are.
What Are the Benefits of an ADU?
If you’re thinking about building an ADU, it’s important to understand all of the benefits so that you can make an informed decision. We’ll take a look at some of the key benefits below.
1. Increase Property Value
Adding an ADU to your home can significantly increase the value of your property.
In fact, the boost in the value of your property can far outweigh the cost of building the ADU in the first place. That means that building an ADU can provide a significant return on your investment. Not only do you get all the other benefits listed below, but you can also make a profit.
2. Working from Home
Recent events may have a long-ranging impact on the way we work. Many of us have been working from home for the first time, and it’s likely that this is a trend that will be far more common in the future than it was previously.
If you want to work from home, having an ADU is perfect. It gives you a space to set up your home office that is free from the distractions of the home, but also close enough that you can pop back to your house whenever you want.
3. Caring for Elderly Family
One of the most popular reasons for building an ADU is to be able to care for elderly relatives.
Indeed, ADUs are often known as granny flats for this very reason. By keeping elderly relatives close by, you are able to care from them in place and have them close enough that you can keep a close eye on them if needs be. With the costs for care continuing to increase, this can be the perfect solution for everyone.
4. Living with Adult Children
At the opposite end of the spectrum, you may have adult children that have recently graduated but can’t yet afford their own place.
If so, you’re not alone. Around 20% of young adults still live with their parents in the US. Sharing a house with your grown children can be difficult for everyone involved.
Building an ADU is the perfect solution, as it allows your children to be able to save for their own place without everyone stepping on each other’s toes.
5. Perfect for Guests
In a similar vein, having guests come to stay with you can be delightful, but can also get quite stressful if you’re all sharing the same house.
An ADU allows you to have family and friends come to stay but still leaves everyone with their own autonomy. It makes these types of visits much more pleasant for everyone involved, with no fights for the bathroom in the morning, or issues with people wanting to turn in at different times.
6. Rental Income
As well as the money you can make from the increase in the value of your property, ADUs also offer the option of earning some passive income.
Renting out your ADU has never been easier. Traditional long-term rentals are easy to set up and provide regular guaranteed income.
If you’re only looking for short-term rentals, sites such as Airbnb make it simple to market and rent out your ADU. The beauty of short-term rentals is that you can still use your ADU for guests in between bookings.
Whichever you choose, your ADU can bring in income with very little effort from yourself. In fact, it could pay for itself through rental income alone.
7. Rent Your Own Home
If your children have left home, you may find that your current property is bigger than you really need. Selling the home that your children grew up in may not be something you want to do, however.
With an ADU, you have the option to move into the accessory dwelling unit, and rent out your own home instead. That way you can bring in even larger rental income, whilst still keeping the property as a legacy to pass on to your children.
Your area may also be popular during certain periods of the year. It might be in an in-demand vacation spot or near the site of a well-known festival or event. In which case, you might wish to rent out your main dwelling during these busy periods, when you can charge significantly more rent.
Once the busy period is over, you can return to your main home for the remainder of the year.
Are You Considering Building an ADU?
If you’re thinking about building an accessory dwelling unit at your home, then we hope that this article has been of use. There are many benefits to building an ADU, so if you do choose to do so we wish you the best of luck.
For more great content, feel free to check out the rest of the site.