An accessory dwelling unit or ADU is nothing but an additional residential building, which is commonly known as granny flat, carriage house, secondary dwelling unit. Legally, ADU is secondary housing of the same property. Dwelling unit, purpose is to provide their tenants with complete and independent facilities, where their living space must include permanent living, sleeping, eating, cooking, and sanitation. It will be a self-sufficient home for tenants, located on the same plot.
ADU requires, much attention in detail to permit, which structure on the same property as a single-family home with range between 600 square feet to 1,200 square feet, it will most often have its kitchenette, living area, bathroom and a separate entrance, for this reason, an accessory unit can be rented. ADU will add significant value to certain property. ADU is vary by structural forms like,
1. Detached new construction ADUs (backyard cottages),
2. Garage conversion ADUs,
3. Addition ADUs,
4. Basement conversion ADUs (basement apartments),
5. Internal ADUs,
Detached building is constructed as a stand-alone house also called as (single detached residence or house), this is a residence which is separated from at least half of a meter from other dwellings. A garage conversion is more affordable to increase your home’s value by adding floor space. Addition dwelling unit is sharing wall with secondary unit which built with separate entrance. Basement conversion save space, that give extra income after modifying with construction, which is more flexible and affordable.
WHY PEOPLE BUILD ADU?
Most common reason for designing ADU is that generate monthly rental income, and also it help to increase property value and also value of life, it all seems like huge expense to do but ADU worth the investment. When you designed for a detached conversion with experienced engineers and architectures, property have the potential to increase value by 20-30 percentage.
Generally, everyone say that rental income will cover maintenance and utility cost but, ADU make it easier if you have space to build a 2-bedroom 2-bath unit, it produce rental income which may free from your monthly loan payments. Many of people planned with converting a part of their property into a new living space could be the best investment.
Accessory dwelling units are on the rise, increasingly, homeowners planned to convert their backyard sheds, garages into additional livable square footage. In other hand if you are a first time investor in real estate, then ADU is your best choice. More specifically, you will able to build one full-size ADU with 1200 square feet, and junior ADU with 600 square feet on your lot.
This will be an income generating field by rental as well as equity of properties, where it has wonderful opportunity for investors already in the field. It can be as profitable, with highest returns with lowest investment. Sometime apart from rental income, investment, profit, ADU only created for the emotional connection of grandparent with grandchildren. Most of the adult need their separate space to admire and to recollect their energetic past life.
Backyard designed with moderate values of home that psychologically treat with healthy communication, that lead future generation in path of amazing learning experience about life. Even though, it is not designed for rental purpose, it designed for place to share love, but also worth the investment by increasing properties value with amusing designs.
ADU act as a money saver, most of the country demand for high costs which is hard to figure, suddenly losing in professional will decrease monthly income. In certain cases, it can be rent as an AirBnB or hotel rooms to generate income.
NOTE: It’s Important to understand that dwelling units of their properties comes with their own design challenges and opportunities. Each creation requires, special considerations in order to make project successful.