Case for Adding an Accessory Dwelling Unit to Your Rental Property
You may have heard of accessory dwelling units (ADU) and wondered what they are and if they would be a good addition to your rental property. Please keep reading to learn about ADU, how they are becoming more popular, and the benefits of adding one to your property.
What Is an Accessory Dwelling Unit?
An accessory dwelling unit (ADU) is a small living space connected to or on the same property as a single-family home. These units are often converted garages or basements, but they can also be newly built structures. ADU can serve multiple purposes, such as providing housing for family members or generating rental income.
Why Are They Becoming More Popular?
There are a number of reasons why ADU are becoming more popular:
- Many people are looking for alternative living arrangements that allow them to age in place or take care of elderly family members while maintaining their independence.
- The increased cost of living has led some people to seek out creative housing solutions that allow them to generate rental income.
- The “tiny house” movement has sparked interest in smaller living spaces that make the most of available square footage.
Benefits of Adding an ADU to Your Rental Property
More Living Space
One of the biggest benefits of adding an ADU to your rental property is that it provides more living space. This can be useful if you have a large family or frequently have guests staying with you. Additionally, if you decide to rent out the ADU, you will have two separate living spaces that you can rent out at different price points. This can be a great way to maximize your profits and get more use out of your property.
The Ability to Rent Out Both Spaces Separately
If you add an ADU to your rental property, you will have the potential to rent out both spaces separately. This can be a great way to generate additional income, as you can charge different price points for each unit. Additionally, it allows you to rent out one unit while still having the other one available for guests or family members.
Putting Unused Space on Your Property to Use
If you have unused space on your rental property, putting an ADU, there can help you make better use of the property and increase its value. Additionally, it can provide you with extra income to put toward maintenance and repairs for the property.
Suppose you’re considering whether or not to add an ADU to your rental property. In that case, there are a number of potential benefits to doing so—including additional living space, the ability to rent out both spaces separately, and increased property value. However, before deciding, it’s important to weigh those potential benefits against any potential disadvantages such as increased costs associated with construction and permitting. Contact us for more information on how we help you in the case for adding an accessory dwelling unit to your rental property.