Accessory dwelling units have a multitude of uses that make them a perfect solution for many property owners. Here are just a few of the ways homeowners in California are using the ADUs added to their properties:

1- Use your ADU as extra living space or a guest house.

High property values in California can make it challenging for homeowners to purchase properties with sufficient living space. Often, buyers are confined to buying a property with just enough room for their immediate family, lacking any room for flexibility or to house guests. This can make everyday life challenging, especially when they want to invite friends and family to stay. Thanks to legislation in California, building an ADU is easier than ever, and homeowners no longer have to worry. You can build an additional unit that serves as a private guest house. If you are looking for something to use more regularly, ADUs are great options for use as granny flats/in-law suites or as a living space for your adult children. Through constructing an ADU, you can have that extra space you’ve wanted for years without experiencing the hassle of moving.

2- Increase the value of your property.

Let’s not forget that ADUs very positively impact property values. As you increase the livable square footage of your home, you also increase your home’s value. The exact amount in which your home increases will vary depending on your ADU’s size, the size of your primary residence, and current market conditions in your area. However, a safe estimate can be calculated if you know the average price per square foot for homes selling in your neighborhood. For example, say that homes in your neighborhood are selling at $500 per square foot, and you have added an 800 square foot ADU. As a general rule of thumb, you can estimate that the price per square foot of the completed ADU would equal 80 percent of the average rate. In this case, the ADU would add $320k to the valuation of your home, making it a worthwhile investment.

3- Generate additional income.

In addition to adding value, ADUs add opportunity! Suppose you do not need additional space, but are interested in generating extra income. Whether you want to help pay down the mortgage or finance your annual vacation, an ADU can serve as a profitable rental unit. The majority of jurisdictions do not have any limitations on how you can use an ADU, so you can rent out the unit to a long-term tenant or turn it into a short-term rental, where it is rented out on a nightly basis via platforms such as Airbnb. This extra income for potential owners is appealing, especially in expensive markets such as Southern California. Since ADU spaces are generally smaller than available apartments in the market, you are also offering an option for more affordable housing to the members of your community. 

4- Create space for a personal office.

As a result of the COVID-19 pandemic, more and more individuals have transitioned to working from home. Even as offices begin to open back up, companies have found that by having their employees work remotely, they can work more efficiently and improve their bottom line, so it seems that working from home is here to stay. Unfortunately, many homeowners were not prepared for this change and lack the space to accommodate the work from home lifestyle. Adding an ADU can solve this problem by building a sanctuary where you can focus without being disturbed. Homeowners can either build a new space on their property or convert an existing space to create a personal office.

5- Build your home and prepare yourself for retirement.

Each year, thousands of Americans transition to a smaller home when entering the phase of retirement. Many retirees find that their single-family homes are much larger than their needs. Furthermore, they notice that the unused space adds an excessive amount of work related to cleaning and maintenance. To accommodate their changing demands, many homeowners sell their homes to purchase a smaller single-story property or condo. However, this forces them to give up the home they have built a life in. Additionally, they end up paying immense amounts for the move, including moving fees, real estate commissions, and taxes. Building an ADU on your property can eliminate this hassle. As we transition into the new decade, we are witnessing a new trend: homeowners retiring in their own backyards! This allows homeowners to keep their options open by keeping the equity they have in their home, renting out the primary residence, and using the income to fund their retirement. Homeowners can now look at the home as an investment property since the main house provides significant income.

Even if you’re just exploring the idea of building an ADU, contact us for one of our unmatched free consultations. As a full-service ADU consulting and construction company, we want you to know that we will be there during every step of the process, including design, permitting, and construction. However you wish to use your ADU, we here at Tandem ADU have the knowledge and experience necessary to make the process as simplified and stress-free as possible for you.