Did you know that there are 1.4 million properties in the United States of America that have an accessory dwelling unit on them? There are many people that are opting to build an accessory dwelling unit on their property and a big part of that is the benefits of an ADU that they get to enjoy.
They make a perfect place for a recent graduate or an elderly relative to live or you can rent your ADU out as a way to generate more passive income. These ADU benefits are just the tip of the iceberg when it comes to the reasons for adding an accessory dwelling unit to your property.
The good news is that you’ve come to the perfect place to learn about the other great ADU benefits like ADU tax benefits and a boost to your property value. Keep reading this article to learn more.
1. An Accessory Dwelling Unit Will Increase Property Value
A big benefit that comes with choosing to build an accessory dwelling unit on your property is the boost to the property value that comes with it. It is one of the main reasons that people build an ADU on their property. The costs of materials and construction are quite small when compared to the value that your property holds once the ADU is completed.
You might spend around $200,000 for building an accessory dwelling unit on your property and discover that now your property is worth $600,000 more than when you started building your ADU. This is an incredible return on your investment given the time and money that you need to put into it and what you get in return.
Adding an ADU is also a great way to get better offers if you’re trying to sell your home. Adding an ADU is a great way to attract different buyers that weren’t interested in purchasing your property before.
2. Private Guest House
Another great benefit that comes with building an accessory dwelling unit on your property is that it is the perfect place for guests to stay when they come to visit you. This is a great option to have if you live in a different part of the country compared to many of your friends and family.
They can come to visit you and have luxurious and private accommodations while still getting to spend a ton of time with you. This is especially true if your backyard ADU has a separate kitchen and full bathroom for your guests to enjoy. It allows minimal disruption to your daily routine and allows everyone their own space.
This is also a great solution if you have elderly relatives or parents that aren’t ready to go into a nursing home but also don’t want to continue spending money to live at their own place. It allows them to live close to you and be involved in your life while still maintaining their independence.
You’ll also find that this applies to recent college graduates in your family. The midst of the COVID-19 pandemic wasn’t the best time to find a job and a new home, but your ADU is perfect for allowing your college grad the chance to get a feel for living on their own without going into debt in order to pay rent at an apartment.
3. Rental Income
No one will ever turn away passive income, and getting an ADU for your property is a great way to reap ADU tax benefits while also collecting more money into your bank account. The type of rentals that you want to do is up to you, but you can choose short-term rentals or long-term rentals.
Long-term rentals are better if you’re wanting a steady and consistent form of income each month. In fact, you can use this income to pay down the mortgage on your home. Short-term rentals are better if you want income to cover whatever your expenses are each week or each month.
This is a great option for you if you live in a vacation area because there are many people that will want to rent a place there during their stay. It wouldn’t be a bad idea to list your ADU as a place to stay on Airbnb as a way to make some extra money during tourist season.
4. Low Cost Housing
If you haven’t noticed, the housing market has gotten a bit crazy and it isn’t the easiest task in the world to find a home to purchase at a fair price. Your ADU is a perfect source of low cost housing for your kids if they don’t have the necessary funds to buy their own home quite yet.
Your backyard ADU is the perfect place to let them live while saving up the money to purchase their own place. They get to experience a bit of independence while also not spending thousands of dollars each month on rent.
5. Separate Work Space
Many people are working remotely during the pandemic and some people are discovering that it is difficult to separate work from their home life. Having an ADU on your property is the perfect solution because it gives you a quiet and separate workspace that you can leave behind when the workday is over.
This can also double as a yoga studio or an art studio depending on what your interests are. You’ll have a perfect place to enjoy your favorite hobbies away from the home where you can focus without issue. This is a much better solution than dumping money into a yoga studio membership or renting an office location to work from.
Start Getting Plans for Your Accessory Dwelling Unit Today
Getting an accessory dwelling unit is a great move for any property owner. It is a great way to increase property value while also enjoying the ADU tax benefits that your backyard ADU provides. You’ll also have a low cost housing option for elderly relatives and recent college graduates, as well as a way to make passive income.
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