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Top 5 Reasons to Build an ADU


Framing of our ADU

There are many positive reasons for building an accessory dwelling unit (ADU). For us, it was a win-win situation as we had been out-priced of the LA housing market, and also wanted to be nearby in order to look after our aging parents.


If you're wondering about ADUs, here are the top 5 reasons for saying "yes."


1. Adding value to your existing property:

Adding an accessory dwelling unit to your main property will increase the value, and is sure to be a selling feature as more and more families are looking to have a guest house or mother-in-law-suite for aging parents (see reason #3). In some new build communities, construction firms are selling plans that already include an ADU for the sole purpose of having extended family nearby.


By converting your garage to an ADU, not only will you appeal to more buyers, but with the finished product, it will add a substantial amount to your property value.


2. Generating rental income:

An ADU presents two great opportunities for rental income. Some folks rent out their accessory dwelling unit for as much as $1800 a month. That could definitely cover a monthly mortgage payment! Others have decided to live in their granny flat, and rent out their main house. Either situation presents great monthly revenue.


Another use is to rent out on Airbnb. Depending on your location, your ADU may be in high demand. Consider your location and the opportunity for guests to maximize their experience by exploring nearby areas of interest.


3. Staying close to family:

More and more couples and families are moving back in with their parents. Whether it's due to a lack of affordable housing (like us!) or a need to have all hands on deck for caregiving, there's nothing better than being home while having your own home. Building an ADU allows you to have your privacy while also being just a few steps away from your family.


As the baby boomer generation lives longer, there's a substantial cost in living and health expenses. Assisted living facilities are expensive, far away, and often not a better quality of life. Consider these factors when determining the cost of your ADU project and if it's worth it. We'll say that living with our in-laws has come with its own set of challenges and that's why we decided to go forward with our ADU. Being close to home while having our own home has brought us closer to family, and provided such a comfort in knowing that we're always there in case anything were to happen.


4. Designing your dream space:

Have you been wanting to build your dream (tiny) home? Or perhaps a studio? Workspace? Or somewhere to meditate and practice yoga? Garage conversions can allow you to get creative and dream up the space that best fits your needs.


If you work from home, a garage conversion is a great way to invest in your future and your productivity. There's a huge increase in co-working spaces where you pay a monthly fee for a table, desk space, or storage space, and all those fees quickly add up. Instead of renting a workspace, or trying to work in a bustling coffeeshop, why not create your own that's just a quick walk away?


ADUs come in all shapes and sizes and this is where you have the freedom and flexibility to dream big. Whether it's an artist studio, workspace, yoga studio, backyard retreat, or your tiny home, it's also your opportunity to design it! You get to pick all the details, the finishes, the exterior and interior design, and truly make something that feels right for you.


5. Easing the housing crisis:

The demand for housing is greater than the inventory, not just in Los Angeles, and not just in California. More and more people are being outsourced from their neighborhoods, and with nowhere to go, many become homeless. Some communities are working with local homeowners to offer a stipend if they agree to rent their ADU to someone who is lacking housing. Not only is the homeowner financially compensated, but they're also giving back to their community by giving a helping hand to someone in great need.


If this opportunity doesn't exist in your community (check your local ADU ordinances), you'll definitely be helping in easing the housing crisis by renting out your ADU. Depending on your square footage, finishes, and location, you'll be able to identify the best rate for yourself and your tenant.


Do any of these reasons resonate with you? If you're thinking about moving forward in the ADU process, but have more questions, reach out to us and we'll gladly share what we've learned, and good folks to work with!


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