5 Reasons To Add An ADU To Your Property
An accessory dwelling unit, or ADU, can be a great addition to your property. We have ADU plans to suit just about any size parcel of land, and if you’ve been considering adding an ADU to your property, here are a few convincing reasons to take the plunge.
1. ADUs Can Be A Source Of Income
California is experiencing a huge housing shortage and ADUs can help lessen this problem. Our state assembly and state senate recently have passed laws making it easier for homeowners to add ADUs to their property. For instance, a recent assembly bill requires local governments to fast-track approval of these units in just 60 days instead of the usual 120 days they have had to approve your building plans in the past.
ADUs can be an excellent source of rental income. The average rent in California is about $1,500 and, in some locations, renters will pay more than this figure. While it costs money to an ADU, this unit will pay for itself in just a few years and continue to generate income for decades to come. Whether you add it as a long-term or short-term rental, an ADU can be a very profitable option.
4. ADUs Add Value To Your Property
While you can generate rental income with ADUs, if you decide to sell your home, this unit can make it easier to sell your property. Buyers can be highly motivated to purchase properties with an ADU. The ADU can provide them with rental income to help pay down their mortgage or it can be used for family or even as office space. No matter how it ends up being used, an ADU can be very attractive to buyers and make it easier for you to sell your home and for a higher price than other homes in your neighborhood.
3. ADUs Can Be Excellent “Granny Flats”
According to an American Association of Retired People (AARP) survey, more than 80% of respondents stated that they would want to build an ADU to provide a home for their loved ones that need extra care. These are often called “granny flats,” because they are built for older parents.
Perhaps your mom or dad is getting older and, while they are still fairly independent, they could use a bit of help and they don’t need or want the hassle of caring for a large home and property. Additionally, an ADU allows grandparents to be close to their grandchildren, yet still provides some privacy for everyone. Our granny flat plans afford the ultimate level of comfort and many offer ADA compatibility, including ramp-style entrances and floor plans that provide easy access for people who use a wheelchair.
4. ADUs Are Perfect For Adult Children
Housing in California is not cheap, and many young adults struggle to pay rent, let alone save for their own homes. If you have kids just out of college, building an ADU can be a great option for your adult children. They can have their own space and privacy, yet they will be close by and living in an affordable spot.
ADUs can be very affordable to build, so you could charge your adult children a reduced rent that helps them save for their future while it still helps you pay for this addition to your property. Likewise, having family living on your property can bring great peace of mind if you are out and about traveling. Your adult kids can check the mail, water the plants, care for pets and keep an eye on the property while you are away.
5. This Is A Great Time To Finance An ADU
With interest rates at an all-time low, this can be a great time to finance an ADU. Some of our clients decide to refinance their existing home loans and take cash out to cover the construction costs and purchase of ADU plans. With these lower interest rates, the extra monthly cost of the ADU often can be covered easily with the rental income that you receive.
Additionally, California recently passed legislation making it easier for homeowners to find loans for ADUs. In the past, most local governments required property owners to live on the property where the ADU exists, but even that is not the case in most towns and cities anymore. These days, you can rent out the main home on the property, as well as the ADU, increasing your income potential.
The California Department of Housing and Community Development has created a website filled with helpful information about ADUs and JADUs (junior accessory dwelling units) at https://www.hcd.ca.gov/policy-research/accessorydwellingunits.shtml. We recommend that you check out this page to learn about new laws and some of the benefits of adding an ADU to your property.
Our ADU Plans
If you head over to the House Plans page, you will find a section for ADU’s & Tiny House Plans. These ADU plans range from 400-square-feet up to about 1,200-square-feet. For many units, we can even add an attached single-car garage if needed. Additionally, our homes include many Standard Specifications that you won’t find from other builders.
As custom home builders, we also can provide you with a completely custom design for your ADU or guest house. However, a semi-custom home can be a more affordable option to consider. With a semi-custom home, the plans are far less expensive because we’ve already completed them and there’s no guesswork or design work. They also can be built much faster because we already know how many materials will be needed to complete the project.
If you are interested in purchasing one of our ADU plans or need complete construction services, give us a call at any time. In addition to ADUs, we also build “full-size” homes and can provide you with a completely custom home. We also build detached garages for RVs and workshops, and many of these plans can include the addition of a small apartment on the second story.