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How an ADU Will Change Your Life

From generating extra income to providing a separate space for aging family members or a home office, the benefits are endless. Just be sure to avoid these common mistakes when building an ADU

What is an ADU?

An ADU, or accessory dwelling unit, is a separate living space on a property that is designed for independent living. ADUs can take many forms, including a small house, an apartment above a garage, or a converted basement. They can be used as a rental unit, a home office, a place for aging family members to live, or simply as extra living space for the homeowners.

What are the Main Benefits of Adding an ADU?

One of the main benefits of adding an ADU to your property is the opportunity to generate additional income. If you choose to rent out the ADU, you can use the extra income to offset your mortgage or other expenses.

An ADU can also be a good investment if you plan to sell your home in the future, as it can increase the overall value of the property.

Another benefit of an ADU is the added flexibility it provides. If you have aging family members who need extra support, an ADU can be a great way to allow them to maintain their independence while still being close by.

An ADU can also be a great option for those who work from home, as it can provide a separate space to work and focus without the distractions of household chores and other household members.

Is it Worth the Cost?

To determine whether adding an ADU is worth the expense, it is important to consider your individual circumstances and goals.

Do you have the extra space on your property and are looking for a way to generate additional income? Have your family circumstances changed and you need to add additional living space ?

If you have answered yes to the above then it is important to establish a building budget which should be based on the return on investment or put simply, the amount of rent that you can expect to generate if you were to rent out your ADU compared to the cost of building it.

A very important factor to consider when building an ADU is the cost of construction. Depending on the size and complexity of the ADU, the cost can range from tens of thousands to hundreds of thousands of dollars. It’s important to carefully research and budget for these costs in order to avoid any financial surprises down the line.

Mistakes to Avoid

  1. Choosing the right builder/contractor with a solid reputation and track record Choosing a builder with a good track record and a thorough understanding of local regulations can help ensure that the construction process goes smoothly and that the ADU is built to the highest standards

  2. Neglecting to factor in the costs of utilities and maintenance. While an ADU can generate additional income, it’s important to remember that it will also have additional costs, such as utilities and maintenance. These costs can quickly add up, so it’s important to budget for them in order to avoid any financial surprises. 3.

  3. Skimping on quality or features in an effort to save money. While it may be tempting to cut corners in order to reduce costs, this can ultimately lead to problems down the line. Investing in high-quality materials and features can help ensure that the ADU is well-built and will stand the test of time.

  4. Be mindful of the design and layout of the ADU. While you may be tempted to pack in as many features as possible, it’s important to remember that the ADU should still feel like a comfortable and livable space. Carefully planning the layout and flow of the ADU can help ensure that it is functional and enjoyable to live in.

  5. Be realistic about the potential demand for an ADU. While an ADU can be a great investment, it’s important to consider the local rental market and the potential demand for the ADU. Failing to properly research the market and set a realistic rental rate can lead to difficulties in finding a tenant and generating the expected income.


In conclusion, an ADU can be a great investment for those looking to generate additional income, create extra living space, or provide a separate space for aging family members or a home office. However, it’s important to carefully consider the costs, potential return on investment, and local regulations before making a decision. Working with a reputable contractor and following all local regulations can help ensure a successful and stress-free construction process. one where the ADU is a successful and profitable addition to your property.

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