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Benefits of an ADU Unit

An accessory dwelling unit (ADU) goes by many names, including backyard cottages, guest houses, or mother-in-law units. ADUs were popular additions to homes across the country back in the early 20th century but saw a rapid decline after WWII as developing suburbs caught the attention of American families.

Today, ADUs are becoming increasingly popular once again due to the many benefits they provide to homeowners. So, whether you have one or are considering making an addition, let’s take a closer look at the benefits of an ADU unit to see if it makes sense for your property.

Passive Income

Let’s face it, generating passive income is just about the dream of everyone. And if it’s not, well, let’s just say it should be. One of the most significant benefits of an ADU unit on your property is the opportunity it creates for you to begin earning passive income off of it. Best of all, as the property owner, it’s up to you to decide whether you want to earn this income on a steady monthly basis or off and on for shorter periods.

Standard ADU units have their own entrances, bedroom, bathroom, kitchen, etc., which means renting them out to tenants is relatively simple. This added income can help you pay for your personal living expenses, including your mortgage, car loan, or insurance.

If you’re not particularly keen on renting out your ADU full-time, you can consider short-term options, such as AirBnB or VRBO. If you’re centrally located, your ADU could be a hit and potentially earn you even more income this way.

Increase Property Value

Most homeowners are interested in increasing their property value, and having an ADU most certainly assures that. According to the National Association of Realtors, 33% of home buyers would pay $3,000 more for an ADU on property.

It’s common to see homeowners consider a cash-out refinance as an option to help cover the upfront costs of adding an ADU, regardless of their current financial situation.

Low-Cost Housing

Another benefit of ADUs can keep an elderly family member close by. Having a separate living space for them allows them the independence they want while still being close enough to you should any emergencies arise.

If not for elderly family members, ADUs also make great homes for live-in nannies or caretakers if you have children or any other family members needing additional assistance throughout their days.

While there will be upfront costs to adding an ADU, if your property does not already have one, in the long run, it still pans out to be a low-cost housing option.

Additional Hosting Space

An ADU also allows you to have additional hosting space should a friend or family member come to town. If your house is feeling a bit cramped or like for your guests to have their own space, an ADU is a perfect option.

Sustainable Additions

Because they are compact, ADUs tend to be more low-impact and sustainable housing options than your standard single-family home. Limited resources are used to heat and cool the space, helping to keep your utility bills minimal and your carbon footprint even smaller.

Find Out More About ADUs with Zieba Builders

Whether you’re interested in making improvements to an existing unit or adding a new one altogether, it’s clear to see the benefits of an ADU unit for your property. If you’re interested in finding out more, let the professionals at Zieba Builders lend a hand.

We have decades of experience at Zieba Builders, including craftsmanship specifically for ADUs. For more information on our ADU capabilities and what else we can do to transform your home, do not hesitate to call us at 562-439-5294!