You’ve probably seen them before – a basement apartment, a tiny home in the backyard, or maybe a room above the garage of a house. These are commonly known as accessory dwelling units or ADUs, and while they were more popular in the past, they’ve recently resurged under many names such as granny flats and laneway houses, to name a few. Communities across the country have spoken up about their desire for more flexible real estate options for reasons such as accommodating multigenerational families or looking for additional income via rent. Many locations have heard their communities cries and chosen to pass ordinances which make them easier to build on one’s property, with 20% of the United State’s home remodeling projects including the conversion of an existing space into an ADU in 2019. Read on for a few great reasons to invest in an ADU for your property.
They Attract Millennials
Bigger cities across the country tend to attract young professionals who seek employment, but only a small portion of them can actually afford to live in these cities. This is where ADUs become incredibly useful. The sharing economy is big with millennials today, such as with ridesharing, so it’s not surprising that millennials would consider something similar for their living situations. On the other side of things, millennials who do choose to buy homes in these more expensive markets are typically looking for a more permanent living situation. While many homeowners inevitably sell for a myriad of reasons, having an ADU to generate extra income could be what convinces them to stay.
Ease Of Installation And Finance
Depending on your location, the housing shortage can make your living situation a disaster. Rent continues to rise in many areas, with land, building and developing costs doing the same. If every property that has the space for an ADU chose to install one, there would be far more affordable housing for the people willing to use them. On top of that, ADU’s are becoming more affordable while the price of other options continues to rise. Those who choose to build and rent out an ADU on their property often find they pay for themselves in a small amount of time by the passive income it generates, as well as by cutting the costs of a college dorm or assisted living. To top it all off, if you ever choose to sell the property one day, the value will likely increase due to the ADU.
They Act As A Safety Net For Your Property
While not protection in the typical sense, ADU’s can add a buffer to your income if something ever happened to your financial wellbeing. For example, if you were to lose your job for some reason, having an ADU can provide you with some extra income while you get your feet back on the ground, as opposed to using a more drastic measure such as selling your home.