ADU construction can help you earn an extra revenue stream. It’s a popular option these days if you wish to boost your income every month. Also known as granny flats, accessory dwelling units (ADUs) can be attached or detached from your primary house. They are secondary housing units that can be an additional source of income if you wish to rent out the units.
ADU Construction as Low-Risk Investment
There are many great things about ADUs. As an additional source of income, these units are low-risk investments. The reason for this is that they don’t need extra land. Furthermore, they don’t require significant infrastructure or additional parking space. That’s why constructing ADUs will cost less than building new residential units. The rental income from ADUs can significantly help you cover your mortgage payments. It’s one reason older people who are receiving fixed incomes find ADU rental helpful in their financial situation.
The Lot is Free
As mentioned earlier, you don’t need extra land to construct an ADU. The land is already free, as long as you own the land where the ADU is built. It belongs to you so there’s no extra expense. You will only need to build a new structure.
For Family Members Too
ADUs are built attached or unattached to your primary dwelling. You will own and manage the ADU. You may create it for a family member to reside there for free or you can ask for a rental fee at a discounted rate.
Advertise it as an Affordable Rental Option
Many people now are looking for affordable housing options because of the rising rental costs. To attract the best-paying renters, you can advertise ADUs as an affordable option in a single-family neighborhood. Some areas in Los Angeles are boosting ADUs as part of affordable housing strategies. They are the ideal options for lower-income households.
Increasing Popularity of ADUs
In California, the number of ADUs that are permitted to be constructed increased in 2016. From 2016 to 2019, ADUs numbers are increasing 24 times over.
Where to Construct ADUs?
You can build an ADU in your basement, above your garage, or a carriage house. It can also be a tiny home. Because the number of ADU construction is increasing, you can virtually find it everywhere in California. When you choose to build an ADU for a family member, you are helping that person avoid purchasing a separate house. That family member can be your adult child or an elderly relative who wants to be near you but still needs independence.
ADUs are different from primary houses because of their square footage. It is sometimes equal to or less than 800 secure feet. However, the regulations will depend on where you live in California.
If you are considering ADUs, you need to understand their process. Talk to our experts to help you create a plan and ensure that you are building it according to housing codes. To learn more about ADU construction in LA, please contact our engineers here: 818-975-8323.