Accessory Dwelling Units (ADUs) are secondary housing units on single-family residential lots. Commonly known as granny flats, in-law units, secondary suites, guest houses, or mother-in-law suites. ADUs offer independent living spaces with the convenience of having a family member nearby in three ways: attached to the main house, detached, or converted.
Benefits of an ADU
ADUs give homeowners diverse opportunities, including extra income through rent, expanded living or working areas, and various accommodations.
Financial Advantages
ADUs are a great solution for more personal space or as a guest house, but there are other options available to homeowners that deliver financial advantages and investment opportunities:
Rental Income Potential
In areas with limited housing supply and high demand for affordable living, ADUs provide a lucrative investment for homeowners by offering supplemental income by way of renting. Having passive income will help offset a lot of bills that come with owning a home and adds value to your property if you ever decide to sell, especially in areas with these challenges.
Property Value Enhancement
Properties with ADUs experience a significant uptick in resale value, not unlike installing a swimming pool. The appraisal largely hinges on the size, location, and categorization of the ADU.
Multigenerational Living
ADUs expand a family’s living space and privacy, which is essential when opening your doors to adult children returning home or taking in senior parents. Multigenerational living has gained greater popularity, not only due to the surge in housing prices but also for the benefits it provides. Between grandparents joining in childcare and sharing in financial burdens, it’s one of the main advantages of having an ADU.
Providing Independence
Living in an ADU can allow older people to live with dignity. By customizing ADUs to have everyday accommodations, they can still do their daily activities independently. Living in an ADU is also beneficial for young adults to manage their own space.
Flexibility and Functionality
Tailoring ADUs to accommodate different needs offers functional variety. While many families think of ADUs for aging parents or for rental income, with so many people working remotely, it can easily be used as a home office or studio space.
Home Office Space
Being that you’re not renting the space from someone else, you’re able to tailor it to your specific needs without requiring permission from someone else. Customizable office space without interference from the main house or the limits of a company-owned cubical or office.
Guest Accommodations
Homeowners with ADUs provide a reliable space for family gatherings and guest visits, ensuring privacy and comfort, which enhances the overall visit experience.
Common ADU Features
ADUs are often compared to tiny homes and other small housing types, but that robs them of their unique features:
- Smaller footprint compared to the average US home. (See your state and local regulations for size limit)
- ADUs are generally owned by the same person who owns the main house on a single residential lot.
- As secondary housing units they can be connected to or a part of the main house; for example, some types of ADUs are beneath the main house or above the garage.
- ADUs can be categorized by types, styles, and permissible uses dictated by municipal land use and zoning regulations across different states, unlike tiny homes. Tiny homes are mostly unregulated or outright not allowed due to many of them being on a trailer or moveable.
Types of ADUs
ADUs come in various types, from detached constructions to parts of the primary house converted into an ADU. Let’s delve into each:
Detached ADUs
A detached ADU is a standalone construction on the side or back of the property lot and is sometimes referred to as a mother-in-law home. Detached ADUs are best for homeowners who want an ADU that provides bigger space and greater privacy.
Attached ADU
As an extension of the main house, attached ADUs suit homeowners desiring proximity between the ADU and primary residence for convenience or security.
ADUs on Top of a Garage
Referred to as garage flats or carriage houses, these ADUs are constructed as a second floor atop a garage or workshop.
Building an ADU: Partner with a Reliable Contractor
Investing in an ADU can yield substantial benefits such as passive rental income, expanded workspace, and adaptable living areas for family members. However, the ADU types feasible for construction on a property depend on state and local regulations.
Are you considering the construction of a detached ADU? Discover comprehensive insights to reach your goal of building an ADU on your property here.
ADU FAQs
Can an ADU be a Primary Residence
No, an ADU functions as a secondary residence to a primary dwelling on a property lot.
Can an ADU have a Garage
Subject to state and local regulations, an ADU may include a garage. This is especially popular for homeowners who want to rent out their ADU without clogging their driveway or street or to provide greater independence and privacy to visiting family, or a multigenerational situation.
Can an ADU have a Separate Address
In alignment with state regulations, an ADU might possess a separate address. However, the address typically assumes a 1/2 fractional number appended to the existing primary address. The request for an official separate address must be made to your state’s Mapping and Property Management Division.
Will an ADU add Value to My Property
Yes, incorporating an ADU can enhance your property’s value, contingent upon the type, size, and location of the ADU.
How Many Accessory Dwelling Units Can You Have
It will depend on your state and local regulations.
