An Accessory Dwelling Unit (ADU) is an additional housing unit built on the same lot as a main house. In other words, it’s a small, independent house constructed in the backyard or as an extension of an existing property.
These units are an excellent option for homeowners who want to make better use of their space or generate extra income through renting.
ADUs, also known as “casitas,” can be a smart investment since they offer flexibility both for families and those looking for an extra source of income.
But, what types of ADUs exist, and what are the advantages and disadvantages of building one?
Types of ADU Houses
There are several types of ADU houses, each with specific features to suit different needs and spaces:
Detached ADU
This is the most common type and consists of a completely separate house from the main dwelling, located on the same lot. These are usually small but offer privacy for both the homeowner and the ADU resident.
Attached ADU
This option involves building a housing unit connected to the main house, either as an extension or within an existing area, such as a basement or garage. While connected to the main house, it has its own independent entrance.
Garage conversion ADU
Many homeowners opt to convert their garage into an ADU, especially if it’s not being used. This type of ADU repurposes existing space, reducing construction costs.
ADU above the garage
If the garage is detached from the main house, there is also the option to build a small dwelling above it. This maximizes vertical space without taking up more land.
Advantages and Disadvantages of an ADU House
Advantages
- Additional Income: One of the main reasons many homeowners invest in an ADU is to generate income through renting. This can help pay the mortgage or cover other expenses.
- Increased Property Value: Adding a well-designed ADU can increase the value of your property. It’s a long-term investment that can make your home more attractive in the real estate market.
- Space for Family: ADUs are an excellent option for those needing more space for family members, such as elderly parents or adult children. This allows families to live together while maintaining the privacy of having their own home.
- Flexibility: An ADU can serve various purposes over time. For example, it might start as a residence for family members and later be converted into a rental property.
Disadvantages
- Construction Costs: While an ADU can generate income, its construction requires a significant initial investment. Costs can vary depending on the type of ADU and materials used.
- Local Regulations: Not all cities allow the construction of ADUs, and those that do often have strict regulations. In Phoenix, it’s important to consult with local authorities to ensure all legal requirements are met.
- Additional Maintenance: Having two housing units on one lot can increase maintenance costs. You need to consider the time and money required to care for both properties.
Is an ADU the Right Investment for Your Property?
Accessory Dwelling Units (ADUs) are an attractive option for homeowners looking to make better use of their land and generate additional income.
However, it’s essential to evaluate the different types of ADUs available and consider both the advantages and disadvantages before making a decision.
If you’re thinking of building an ADU house in your backyard, make sure to consult with experts to get the best advice and ensure your investment is worthwhile.
Build your ADU,
boost your property value
