An accessory dwelling unit (ADU) is an extra residential unit that shares the same building lot as a single-family home (primary residence) and is significantly smaller. An ADU can be attached to a garage or house or be constructed as a stand-alone unit. It can also be detached from your home. Adding an accessory dwelling unit to your property can be quite rewarding. Discussed below are five benefits of building an ADU on your property.
1. Generates extra income
Building an ADU on your existing property can help generate some additional income. You can rent them out to tenants (long-term rentals), creating a steady stream of income while earning sufficient money to cover the costs of the unit’s financing. If you reside in a known vacation destination, renting out your ADU short-term visitors (short-term rentals) can help you earn extra money.
You can also put your accessory dwelling unit on Airbnb to earn more rental income. Alternatively, you can decide to live in the ADU and rent out your primary home for long-term or short-term tenants.
2. Increases property value
A study found that ADUs can increase property values by 35%. Constructing an ADU can significantly raise your home’s resale value when it’s time to sell because it offers an income-generating unit and additional living space. Detached ADUs will give you the most value because they’re separate units that add to your house’s square meters and appraisers can consider them to determine your property’s worth.
An attached ADU brings the second most value to your property. It offers little privacy because it's attached to your primary residence. A garage or basement ADU can also increase your home’s value, but not as much as an attached or detached unit can.
3. Provides an affordable housing option for elderly loved ones and adult children
An ADU is a worthy investment when looking to assist senior family members to age in place while staying close to you. A senior-friendly accessory dwelling unit (ADU) may be a separate living area that offers independence and privacy while allowing your elderly family members easy access to the primary residence whenever they need help.
Additionally, building an accessory dwelling unit on your property instead of having your senior loved ones rent elsewhere can save you money and ensure they have the necessary support they require during their sunset years. If you have adult children still living with you, an ADU can provide a cost-effective housing option while giving them the independence they require.
4. Lets you create the ideal home office
If you work from home or are self-employed, constructing an ADU lets you create a dedicated work area away from your family life’s hustle and bustle. An ADU makes it easier for you to separate your home life from your work by providing you with a private office space where you can concentrate on work without distractions.
5. Allows you to age in place
An accessory dwelling unit is a perfect solution if you wish to age in place rather than moving into an assisted living community or long-term care facility. Constructing an ADU on your property lets you stay close to friends and family while ensuring you don’t give up the independence that comes with living in your home. Ensure the ADU is constructed with a senior’s needs in mind to ascertain comfort and convenience.
Endnote
Adding an ADU to your home can be rewarding. It allows you to age in place, create the perfect home office, generate additional income, increase property value, and more.
