ADUs, also known as Accessory Dwelling Units, are small or compact residential buildings. These miniature residences are often attached to larger main residences such as guest homes or granny flats. Recently, many ADU builders have been advocating for California and neighboring states to recognize these units as independent dwellings, a move aimed at addressing housing demands while maintaining affordability in the real estate market.
Top 7 Uses for an ADU
ADUs continue to grow in popularity and demand, making them one of the hottest topics in real estate as we head into the final quarter of 2023. So, we believe this is the perfect time to talk about their many benefits and functions. Today, our award-winning home design experts are going to cover the top 7 uses for an ADU that you may find interesting as you take the next steps in your homebuilding journey.
Greatly Increase Your Property Value
Despite their small sizes, ADUs can significantly increase both home and property value. Like any kind of living unit, when invested with care and effort, ADUs yield returns greater than the initial money put into them. Appraisers consider ADUs comparable to regular homes, attracting those seeking a smaller space and reduced costs.
Low Maintenance Homeownership
Whether renting from a local landlord or purchasing for rental purposes, ADUs require minimal maintenance. Classified as homes, they are particularly suitable for individuals with limited cleaning capabilities, such as the elderly or those with physical needs.
Start a Short-Term Rental Business
From a logistical standpoint, ADUs are ideal for operating short-term rental services. Depending on local regulations, listing your ADU on platforms like VRBO or AirBnB can generate substantial profit, also enhancing the property’s value over time.
Get More Versatile Storage Space
ADUs are diverse in function and can serve as more than just living quarters. They can range from simple storage sheds to elaborate guest houses or apartment units. Homes accompanied by storage sheds or additional units are highly attractive to buyers, so sellers will often advertise ADUs as all-purpose buildings.
Transform Your Basement
Transforming a basement into a livable space is a viable option, potentially converting it into an ADU or a furnished bedroom for a new family member. The key lies in ensuring the transformed space mirrors the look, feel, and functionality of any other bedroom in the house. As long as your basement can provide all required amenities, like electricity and plumbing, you can turn your basement into an accessory dwelling unit.
Profit from Affordable Housing Investments
ADUs, with the right remodeling and location, can significantly increase home value, providing a substantial return on investment (ROI). This makes ADUs an attractive option for low-income households, offering an affordable residence and potential passive income through renting. Anyone who is looking to get started in a rental business can start with something that has high affordability and low startup costs.
Stay Safe During the Next Health Scare
The COVID-19 pandemic saw a surge in ADU popularity in the California housing market. Families affected by the pandemic or unsettled market conditions advocated for deregulated development of these units. ADUs offer a potential solution for families, providing a place to live and accumulate value over time, offsetting financial burdens.
Search Available ADUs Now
Regardless of temporary pitfalls like income constraints or renovation needs, ADUs are very accessible. Whether you are looking for a temporary housing situation with low financial stakes, or you want to passively build up your income through an extra rental property, ADUs might be perfect for you.
Through strategic efforts to enhance their value, ADUs can offer profitable returns over time. Our design and build firm experts can help you weigh the pros and cons of accessory dwelling units to see if this is the best possibility for your future. Contact us today to learn more!