What is an Accessory Dwelling Unit?
Accessory Dwelling Units (ADUs) are small units that are either attached to a main home or freestanding. They can also be converted garages or attic spaces. ADUs are typically 600-1,000 square feet and can have one or two bedrooms as well as a kitchen and living space. College students, grown children, extended family, senior citizens, and onsite caregivers are those that commonly occupy accessory dwelling units.
Financial Benefits of Accessory Dwelling Units
- Rental Income – This can be an option to help pay the mortgage on the main home or a way to get some extra cash.
- Reduced Expenses – An ADU is considered part of the main home; it cannot be bought or sold like a condo. There is no cost for the land, major infrastructure, or structured parking.
- Increased Property Value – The ADU’s kitchen, bathroom, and bedrooms are viewed as additions to the primary home. In some cases, the value can rise by 35%¹.
Other Benefits
- Employees – Many workers are still working a hybrid schedule. An ADU can be a private, quiet place to work from home.
- Athletes & Hobbyists – A small, comfortable space allows one to work out or pursue a hobby away from the activity of the main house.
Sources – ¹REALTOR.com
All About Accessory Dwelling Units
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