Owning your own home is by far one of the most intrinsic parts of being an adult, followed closely by marriage and owning a minivan. That’s why buying a house is probably the last time you’ll have to face the financial restrictions, return on investment calculations, and that sort of thing. However, given how there seems to be a housing issue on the rise lately, many neighborhoods have been encouraging homeowners to build an ADU (Accessory Dwelling Unit) to try and supply viable living possibilities to people on the search for affordable housing. So, what’s an accessory dwelling unit? Mainly a supplementary condo or studio; ADU is a legal and regulatory phrase used to describe any added housing feature that is part of a broader primary house.
Truth be told, there remains some resentment over the idea of going through the hassle of building an extension to your house. The process of building anything through contractors can be too much of a hassle for the average owner of even a small home. Starting from finding the right builders, to getting them to initially show up. The professionals at Action ADU warn you that building an extension unit to your home can cost you the same time and effort the main house did. That being said, they also assure you that investing in an ADU right now is definitely going to be one of the best decisions you can make as a homeowner. Whether you want an old building to be renovated or equity built into a new structure, an accessory housing unit is likely to add value, versatility, and a little bit of land to your home.
Legality
First things first, we need to answer a very important question, are you allowed to build an ADU on your property in the first place? This preliminary investigation is vital. It is unlikely that an ADU will have a price attached to it by an evaluator if it is not legitimate by federal standards. If your property needs to be refinanced, or if you sell it, this can be a major issue because creditors won’t be giving you money if the core equity is illegal.
Therefore, if an ADU is not legal on your land and you install one anyway, you will have to be mindful about the possibility that law enforcement will be forced to charge you with a fine, not to mention the fact that you will be forced to oversee the demolition of the ADU. In the event of demolition, your investment will absolutely be a failure. So do your research prior to any construction steps. The city zoning code will guide you on the legality of an ADU. Zoning laws are not always straightforward, so hire a land-use lawyer to help you find out if your ADU is going to be valid or not.
ADU Uses
For Family and Friends
ADU’s are considered to be economical, dignified alternative options to care homes and support facilities for many families. The cost of putting your elderly loved ones in senior assisted living facilities should be motivation on its own to start building your own accessory dwelling unit. Not to mention the fact that if you host your family and friends frequently, your ADU can act as a spare guest bedroom. This is a winning opportunity for you and your visitors, particularly in aged, tiny houses where every opening door and the creaky floorboard sounds like a missile. Typically it should be a joint effort between a mom or dad and children who own the home if the extension unit is designed as an apartment to a family member or even a friend. They will create an inexpensive and autonomous unit by pooling their resources, where family and friends’ support is just a few feet away.
Extra Income
Long-term income from monthly or annual rental leases is another possible usage for ADU’s. The income possibility of any landlord who builds or buys a complementary unit evidently varies widely depending upon ADU size, location, comforts, and so on. It is worth noting that the profit brought in from the ADU is a legally accepted opportunity for passive income. If subletting to just one tenant is not something you want to do, you can instead focus on a rental that applies only for a shorter term. You can target your ADU towards people who are traveling the world on platforms such as Vrbo, HomeAway, Airbnb, and other holiday rental platforms, whether you live in a suburban town or popular tourist city. Note that laws specific to short term rentals differ according to specific jurisdiction laws, so it’s imperative to ensure that you are entitled to take this direction before registering the rent and pay your charge on your taxes.
Miscellaneous
You need your house to be exceptionally unique. Your ADU might emphasize or create a completely new feature, depending on its facilities and configuration. You could, for example, use your ADU as a pool house with private changing rooms and a shower if you have a backyard pool. It could act as a middle ground meant to diminish the traffic from the main house if you are a frequent host or could simply be a small apartment. Including an ADU is seen to be a good way for you to get the time to pursue whatever it is you are passionate about, especially if you are an artist, craftsman or an individual doing art professionally without hogging your principal home or driving your whole family insane. You will work uninterrupted on your attempts to complete projects or finally tend to your next task like renovations and so on.
ADU’s are not temporary housing options, they are real homes that require permits for construction and certain investment. Moreover, there are just very little ADU’s enabled to make a big difference to the supply of housing. However, even if they don’t solve the housing issues in a city, homeowners can still try to help as little as they are able to. Rental income capability and the prospect of versatile livelihoods for multigenerational households are a common motivation behind the development of ADU’s.
