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Is It Worth It to Build Accessory Dwelling Units? (The Answer Is Absolutely)

October 20, 2020 By Admin

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Did you know that there are more than 13 million accessory dwelling units out there? If you are wondering if it is worth it to build accessory dwelling units, we are here to help you decide. 

Keep reading to learn why building an ADU is a good investment.

Grey themed living room in and ADU

1. Increase Property Value

One of the biggest benefits is that you will increase the value of your home when you build an accessory dwelling unit with all the proper licenses. Even though you will spend money upfront to build an ADU this will be tiny in comparison to how much value it will add to your property. 

For example, if you spend around $250,000-$300,000 in Southern California the resale value of your home would be around $600,000. This is a great return on investment if you plan on selling your home at any point in time. 

If you have been trying to sell your home for some time now and are having a hard time then it might be worth it to build an ADU. Adding this separate living structure will bring a different buyer to the table and someone with higher offers. 

Bright colors in private guest house

2. Private Guest Home

If you ever have guests or family in town, having an ADU will provide them with separate private accommodations outside of your main home. This is always great for both parties because you will have more privacy and so will they. 

You can even take the time to design a communal outdoor living space for the main residence and the accessory dwelling unit to share. This will be a great way to hang out together with guests. If you are looking for plan ideas check it out here.

In the future, if your parents or your in-laws need a little extra help as they get older this is a perfect option where you can each still maintain your privacy. Most people prefer this over putting their parents in a nursing home. 

Bright ADU interior

3. Low Cost Housing Option

If you have children that are getting ready to move out of the home but are having a difficult time finding a place to live because the cost of living is too high, then this is a perfect low cost housing option for adult children. They can stay there while they are going to college or while they are getting on their feet after graduating from school. 

It gives them a separate space to have their independence and it also allows them to save money while they transition out on their own. 

Home office in section of living room

4. Separate Work Area

With a lot more people working from home, having a separate space to work will help enhance productivity. It will also come in handy whenever you have virtual meetings because you won’t have to worry about dealing with interruptions. 

The ADU will eliminate the hassle of wasting time in traffic and the extra costs that come with commuting.

If you are currently spending money on renting an office space every month, then why not invest that money into building an ADU instead? You will be able to recoup that money if you ever choose to sell your property in the future. 

For those that have fellow business owners or clients visit them at their office, you can opt for a plan that completely separates the ADU from the primary residence. You can even have separate parking spots and entrances. 

Living room interior in rental property

5. Rental Income

Thanks to the rise of sites like Airbnb and Vrbo, it is easier now than ever before to rent out rooms in your home or rental properties that you have. Having an ADU that is not always in use can bring you extra income. 

You can rent the unit at premium rates for a weekend if you live in a vacation destination. Depending on your location the rates can help cover a large portion of your own mortgage every month, making your payments lower and helping you pay down your home quicker if you choose. 

Please keep in mind that every area has its own laws and regulations when it comes to short term rental programs. Unfortunately, there are some cities that prohibit short-term rentals. 

Bright interior with eco-friendly plants

6. Eco Friendly

Another pro of building an ADU is that this type of housing has a very minimal impact on the environment when you compare it to other housing alternatives. The reason is that they are smaller and they also take up less space. You can opt for recycled and eco-friendly materials.

Bedroom for domestic help

7. Domestic Help

If you are planning on hiring a nanny or an au pair to help you with your kids then having a separate living space will make it easier to give them their own living space. Most people give household employees the spare bedroom which gives both parties less privacy. 

Having an ADU will help the person feel less constrained by the family employing them leading to a better relationship for both parties. 

Apartment interior

Feeling Like an Accessory Dwelling Units Pro?

Now that you know the top benefits of moving forward with building accessory dwelling units, you can make an informed decision whether or not this is the right move for your home. If you decide this is right for you then you can start the research phase and look for a local builder to help you bring your vision to life. 

Did this blog post help you out today? Please feel free to browse the rest of this section for some more helpful reads. 

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