When you are looking for options to increase the value of your property–ADU will appear like the most logical choice for you. But, among various options & details involved, how much value an Accessory Dwelling Units add to your property?
It will be really tough to answer this question with the concrete number only if you work with the professional firm that will help you to plan out each detail, which includes the permits, design work, and quotes from the local contracting companies. Adding an ADU to your property comes with several benefits that we will check out in this article. Let us know why you must think of building Accessory Dwelling Units.
Improves Property Value & Resale Value
The common reason that many homeowners build ADU is to increase their property value. The sum of money needed to construct an ADU will be minuscule compared to the value-added to the overall property. If it takes around 12 to 14 months to build an ADU, it will be a good return on investment. Suppose you’re trying to sell the home & are not getting great deals, it will be worth building the ADU at your property. By adding the new separate living area to your lot will bring a different buyer to the table. Also, they might be very keen to provide higher costs knowing that they can offset the mortgage payment with the income that is generated by an ADU.
Helps to Generate Rental Income
Another common reason that many homeowners embark on the ADU journey is getting extra rental income. No matter whether you are struggling to cover the mortgage or financially solid, additional income will always help you out. Detached Accessory Dwelling Units will be highly lucrative that rent can cover the mortgage or other housing expenses. It means you can live for free when you are paying off the loan!
It is true in case you have a little space to build 2-bedroom and 2-bath unit. It will improve your rental income by a huge amount & make it very simple to rent space out too. Given you select the best architect for this job and have appropriate experience, it will not cost more than one single bed & bath unit. It is by far a highly suggested way as you will gain over $3,000 additional income every month, which depends on the location.
Separate Space for Work
Suppose you have to work from home, having the detached structure where you can work peacefully will improve your productivity & helps to focus on your work. Making use of an Accessory Dwelling Units as the art studio, office or workshop allows you to have a separate area for the client meetings and will create a professional setting than an in-home office at your own residence. Building an ADU on the property for work eliminates commuting & wasted time in the traffic.
Rather than sinking money in the office rent every month, it is better that you invest your money in building the ADU. And when you think of selling the property, you will re-coup its cost of build in your sale of the property.
So, with the perfect site planning, design and landscaping, there are several options to totally separate your residence from an ADU. Having separate entrances & parking will help to present a professional look to your business.
Building an ADU is one best opportunity for investors who are already in this field. Suppose you own five or ten properties that bring in good revenue, just imagine if you add ADU to every property it will benefit you so much by generating rental income and equity of the properties. So, such kinds of opportunities do not come around quite often, so you make good use of them!
Adding ADU to your property is one great investment, no matter if you are the homeowner want to make extra cash flow or experienced investor. Despite the given benefits, tradition of zoning is quite strong that in most of towns and cities, an ADU’s aren’t allowed at all, or permitted just with the conditional use permit, and very tightly regulated that it becomes totally impractical for everyone but the determined homeowner.