The embrace of accessory dwelling unit (ADU), or granny flat as it is fondly called, is on the rise again. It’s not that this kind of building is a new trend as we’ve had them as far back as the early 90s. However, different states’ regulatory agencies on granting permissions for constructing this housing structure had not been as gracious as we now have. The relaxation of the stringency surrounding the granting permits may not be disconnected from the need to ease the burden on existing housing units.
Again, many property owners may now see the construction of ADUs to address the financial disruptions or challenges occasioned by the COVID-19 pandemic. You, being a property owner, might have been seeing the acronym ADU fly around the internet or maybe in conversations around your circle of friends but have not taken it to heart. If that’s the case, then you may want to read on to know more about ADUs.
Who qualifies to own an ADU?
Property owners – is it that simple? – Maybe or maybe not. Having the space to construct the ADU is a prerequisite – you will need nothing short of a 600-square feet land area to have one. This land area refers to the available space in addition to your main building.
How much does it cost to construct an ADU?
Building an ADU will vary based on specific cost variables like site work, creation of conceptual and structural designs, interior finishes, utilities, etc. Another significant cost implication is the size of the ADU you intend to build – the bigger it will be, the more money you will have to shell out for its successful completion. Nonetheless, you can look to spend a minimum of US$300 per square foot of land area. This means, assuming you want to build the ADU on a 600-square feet land space, you should earmark nothing less than a total of US$180,000 – it can be more.
What can I do with an ADU?
You can consider having an ADU as an extra space where your guests visiting – to spend their vacation – can lodge. This will allow you some degree of privacy, especially when the nightfall or when you need some solitude. You can rent out your ADU and rake in a reasonable sum of money every month. This will give you some financial leverage and help you weather any raging financial storm safely. Yours may just be an ADU San Jose – or wherever – residents or tourists will be interested in dwelling in per time.
How much can one earn from renting out an ADU?
The amount you will be able to get from renting your ADU may vary depending on the state you have the property established. However, on average, you can chip in around US$2,000 – 2,300 monthly from renting out your ADU. Given this, you can have the ADU listed on online (lodging) marketplaces like Airbnb, Vrbo, and so on for better visibility. Apart from this, you can also have an agent oversee the rental aspect on your behalf. You should understand that ADUs are not meant to be singularly sold in whatever way you attempt to make money through your ADU.