An ADU or accessible dwelling unit is an extra housing unit on your property. While building an ADU is an obvious expense, it may be an excellent investment in the right circumstance. Building an ADU may be for you if you want to boost your property value with an upgrade that can impact your ROI in more ways than one. However, it’s not for every homeowner and circumstance, here’s what you need to know if you begin to build ADU on your property.
The Benefits of Building an ADU:
Guest Housing
ADUs are commonly known as mother-in-law units, and they got the moniker for a reason. Whether you want to host short-term guests for the weekend, or you’d like a family member to move close by, an ADU can be a very helpful option.
Long-Term Housing
For adult children, in-laws and other family members or friends that need additional privacy, an ADU is the perfect option.
Short-Term Guests
For weekend guests, an ADU can make them feel free to come-and-go as needed without feeling as though they are disturbing you. Additionally, you can rent out the place when your guests are not using the ADU.
Additional Income:
ADUs provide ample opportunity to generate revenue throughout the year both through short-term and long-term rental options.
Short-Term Rental
Using a short-term rental site like Airbnb or Vrbo can be an excellent way to generate income without occupying your ADU year-round. You can easily rent it out only when you want to, blocking off any dates you would like a quiet weekend or would like to have the space occupied by a personal guest.
Long-Term Rental
Renting to a vetted and screened tenant can be a great option. You can generate monthly income to help pay your mortgage in record time. Just be sure you feel comfortable sharing your space, and are ready to learn about your local rental laws.
The Obstacles With Building an ADU
Building an ADU can come with its share of obstacles. You will need authorization from your local area to add an ADU to your property, not every property is rated to have an additional building.
Additionally, many obstacles are directly related to the respective ADU’s benefits. The primary downside is the initial cost of adding the building to your property, this can be offset by the revenue that can be generated as long as you are aware of the time and maintenance commitment associated with renting out your space.Â
