Accessory Dwelling Units, or ADUs, are becoming more popular as people look for ways to increase the density of their neighborhoods while also adding more affordable housing options. Expert Pedram Zohrevand says these small units can be attached to or separate from the main house and used for various purposes, including renting out, hosting family members, or using as an office. Here we will explore why ADUs are becoming more popular and discuss some of their benefits for homeowners and renters alike!
An accessory dwelling unit (ADU) is a secondary living space on a property that can be used for various purposes, such as housing an extended family member, generating rental income, or providing a place for a live-in caregiver. ADUs come in many different shapes and sizes, but they all must meet specific code requirements to be legal. Some common types of ADUs include converted garages, attached junior units, and detached new construction.
One of the main benefits of having an ADU on your property is that it can provide you with additional income. If you choose to rent out your ADU, you can generate significant revenue to help offset your mortgage payments or other living expenses. An ADU can also provide extra space if you ever have guests visiting or need a place for a live-in caregiver. If you consider adding an ADU to your property, consult with a qualified contractor or architect to ensure that your unit meets all applicable code requirements.
The Cost of Adding an ADU
Adding an ADU or accessory dwelling unit to your property can add value and income significantly. But what is the cost of adding an ADU, and how can you finance it?
Generally speaking, the cost of adding an ADU will vary depending on the size and location of the unit. In some cases, you may be able to finance the construction cost with a home equity loan or line of credit. Otherwise, you may need to take out a personal loan or secure financing through a lender specializing in construction loans.
Pedram Zohrevand says that once you've financed your ADU's construction, you can expect a return on your investment in increased property value and rental income. An ADU will most likely appreciate the rest of your property at the same rate. And because they are in high demand, you can typically charge a premium for rent.
So if you're looking for a way to add value and income to your property, building an ADU is a great option. Just be sure to do your research and consult with a financial professional to make sure it makes sense for your specific situation.
FAQs About ADUs
Q: What are the restrictions on building an ADU?
A: The restrictions on building an ADU will vary depending on the jurisdiction in which you live. There may be minimum lot size requirements or maximum unit size limits. Additionally, your municipality may require that you obtain a special permit or zoning variance to construct an ADU on your property.
Q: Can I live in my ADU?
A: In most cases, yes! However, there may be some restrictions depending on the jurisdiction in which you live. For example, some municipalities only allow homeowners to occupy their ADUs if they are over 55 or have a disability requiring a live-in caregiver.
Q: Are There Different Types Of ADUs To Choose From?
A: Yes, there are different types of ADUs to choose from. The most common type of ADU is a detached guest house, but there are also in-law units and converted garage units. Consult with a qualified contractor or architect to ensure your chosen option meets all applicable code requirements. Thanks for reading! We hope this article has answered some of your questions about ADUs. If you have any additional questions, please feel free to contact us. And if you're thinking about adding an ADU to your property, check out our other articles for more information and resources. Thanks again!
Adding an accessory dwelling unit (ADU) to your home can benefit you. It can provide additional income through rental payments, but it can also increase the value of your property. If you're considering adding an ADU to your home, consult with a qualified contractor or architect to ensure that your unit meets all applicable code requirements.
You'll need to finance the cost of construction, which can typically be done with a home equity loan or line of credit.