Should You Consider Building an ADU? | The Listing Team

Are you looking to add value and utility to your home? If so, an ADU may be just the solution you’re looking for. Here’s what you need to know about ADUs.

What Are ADUs?

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Accessory dwelling units (ADUs) are additions to an already occupied property. They have a variety of uses, including rental apartments, guest houses, in-law suites, and pool houses.


The difference between an ADU and a shed or garage is that an ADU must be liveable – it needs a kitchen, a bathroom, and a bedroom. ADUs range in price depending on what type you’re building.

Types of ADUs

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ADUs come in many shapes and sizes, but all of them fall into one of three main categories:

Detached

Detached units are completely separate from the primary residence on the lot. These are the most expensive type to build since they’re an entirely new structure. When calculating the cost to build, you must consider a foundation, structure, roof, interior finishing, and connecting municipal utilities to the location.

However, the added costs of building this ADU type are often worthwhile since they offer the most privacy. If you’re looking to add rental income or need a place for family or guests to stay, a detached unit may be your best option.

Attached

These units share at least one wall with the main house and resemble a typical home addition. Sometimes attached ADUs have an interior door leading into the main home and a separate exterior entrance. These are less expensive to build since they share wall space with an existing structure. It’s also less costly to get utility hookups into an attached unit.

Even though an attached ADU connects to the main house, it still requires its own bathroom, kitchen, and sleeping area to be considered an ADU. These units aren’t quite as private as a detached ADU, but their cheaper price point may be worth considering. Additions on the back of the home and over the garage are relatively common forms of attached ADUs.

Interior Conversion

Interior conversions are closer to a renovation than a new build. They transform an already existing space into independent living quarters. The most popular uses of interior conversions are turning attics or basements into in-law suites or rooms for a young adult family member.

Garage conversions are also relatively common and can take over the garage space or be built on top – which leans toward being an attached ADU and comes at a higher price point. If you’re building over an existing garage, consider updating your current garage door to be more secure. Installing an automated door with password protection will help any tenants on the premises feel safer.

If you have the space to convert, these ADUs are the cheapest to build since you don’t need to add a foundation or structure and utilities are already there or easy to bring in. However, these offer the least amount of privacy to both parties.

Benefits of Building an ADU

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Even though they can be expensive, ADUs can serve a broad range of uses for homeowners:

Increased Property Value

Many homebuyers are willing to pay more for a home with a built-in rental income. Having a rental unit already on the property would help reduce living costs for potential buyers. When selling a property with an ADU, do your market research to see the potential rental income and offer that information to anyone interested in the home, since the rental unit could make their payments more affordable.

Rental Income

ADUs are perfect to use as rental units since they must be self-sufficient. You could rent your unit on a semi-permanent basis to a tenant or even list it on sites like Airbnb and rent it out when you aren’t using it. Either way, an ADU is a potential goldmine of reasonably passive income.

Low-Cost Housing for Family

If you have an older relative who needs to downsize their home or needs extra care, an ADU is a great option that allows them some form of privacy and saves everyone money on expensive senior homes.

Adult children can also benefit from living in an ADU. Parents can offer their children free or reduced-cost living to give them time to get on their feet financially before leaving home. Living in an ADU would give them more privacy than living in the main house and teach them the responsibility of caring for their own space.

Private Place to Host Guests

Do you love to entertain or have a lot of family and friends who live out of the area? An ADU makes a beautiful guest house. Give visitors their own private space so they can fully enjoy their trip. A separate guest house can make your family and friends feel more comfortable and relaxed. Careful, though – if you pamper your guests too much, they may never leave.

ADUs in Florida and Beyond

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ADUs are on the rise across the U.S. but are even more popular here in Florida. In fact, California, Florida, Texas, and Georgia account for half of all ADUs in the nation. Their adaptability and long-term value make them a smart choice for those with the room and budget.

Whether you need the extra space to house a loved one, want the rental income, or wish to increase your home’s value, talk to a local construction expert to help you decide whether an ADU is right for you.




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