ADU Pros and Cons: All the Hidden Insights

At some point in life, everyone comes to the idea that superficial knowledge is not enough for the entire understanding of a particular problem or issue. For example, it’s impossible to become a champion in the Physics Olympiad if you only know Newton’s three laws or to win the basketball quiz if you have only one idea about the fact that Michael Jordan is the NBA legend. We can say the same about ADU’s advantages. Many homeowners doubt the construction of an accessory dwelling unit (ADU) because they do not know enough about its strengths.

In this review, we will present to you the numerous advantages of accessory dwelling units that all property owners expect immediately after the completion of the project. For convenience, we will divide the benefits into several blocks to immerse you in this topic as much as possible.

ADU Financial Benefits

Without delay, let’s move on to the aspect that every homeowner can name the most exciting. The construction of any ADU, whether it’s a garage conversion or a detached unit, is a significant investment, and sometimes their source may be a construction loan. Accordingly, any homeowner first expects a financial return from such a project, and this draft is 100% in line with these expectations.

Property value boost

Real estate professionals are unanimous in the opinion that each new square footage is a much more significant boost to the price of your property than any renovation. After the appearance of the new ADU, the overall value will grow by several hundred thousand dollars, and this is precisely how much you need to invest in the project. In other words, you instantly pay off the construction and go into the plus because, over time, the property will only get more expensive.

Rental income source

We fixed the moment with the property value upgrade, and now let’s talk about one more intriguing aspect. I agree that everyone dreams of a passive income and a bank account where you can find a new deposit every month without any effort. ADU provides this opportunity because the demand for this rental unit is always at a consistently high level, which means that extra income will flow like a river without stopping.

Utility costs decrease

Despite the fact that some ADUs are separate from the main house and have an independent life support system, these are very energy-efficient spaces. If you had concerns that your utility costs would double after the ADU construction, then feel free to forget about it. During construction, ADU builders will equip the space with various energy-saving elements that will eliminate the option of increasing utility bills.

An interesting fact is that the accessory dwelling unit is the only living space in which you can activate all the above options in parallel. That is, you can simultaneously fix the home value upgrade, rent out the ADU, receive additional income, and save on utilities.

Accessory Dwelling Units & New Life Quality

Having ADU on the same lot as your primary residence is not only a cost-effective solution but also the best way to take your quality of life to a new level. There are many manifestations of these changes, so it would be best to give real examples.

Comfortable guests reception

Your closest family members, distant relatives, long-time friends, and colleagues can come by invitation or suddenly, but this process always has inconveniences and limitations, especially if everyone has to live in a primary dwelling unit. However, if you have additional space in the ADU format, then this scenario will not affect you since you can accommodate guests with all the comfort in the ADU while not limiting yourself in amenities.

Separate space for adult children

When your children are five years old, they can peacefully live in the same room, but when they reach adolescence, such a format of living can lead to completely disrupting consequences. Many homeowners have no way out of this situation because buying a new home is not an option. However, you will not be part of this cohort, because having an ADU you can allocate a separate bedroom for the eldest child and another for the youngest, thereby maintaining strong family relations.

Dream home office

In the past decade, it was impossible to imagine that people would work from their homes, but new realities dictate new conditions. Working online has become something commonplace for thousands of people of different professions. However, they all share one problem, namely the inability to work effectively in the existing space of the main house due to dozens of distractions. Tiny homes are the perfect solution to this issue, because you can create a customized home office for your requirements and needs.

Extra storage space

Another pressing problem that can haunt homeowners for many years is the lack of storage space. Of course, such conditions inevitably lead to conflicts and disputes regarding the need to store a particular thing. Fortunately, functional ADUs with transformer furniture will get you out of this situation, and you will have enough space for anything, even the most rarely used things.

Overall, each property owner discovers the unique characteristics of the ADU based on their personal requirements. For example, if you do not have enough space to dry things, you can organize a laundry room, or if you dream of a cozy place to read books, then a home library. As plenty of homeowners, there are unique stories of bringing the quality of life to a new level.

ADU Additional Privileges

We have two clear categories of ADU benefits that will please any property owner. However, we can also highlight a list of positions that did not fall into any of the sections, although they carry no less value than other factors.

Get ready to reveal even more cool sides of ADU:

1. When our parents or close relatives begin to age, each of us has an involuntary feeling to bring them closer. Unfortunately, the main house does not provide such an opportunity due to limited space. Therefore, people are starting to look for alternative options, and ADUs, namely detached units, fit perfectly into this concept, not for nothing. Their second names are granny flats and mother-in-law units. Moreover, if you want to provide 100% comfort to aged parents, then we recommend you adhere to the safe design technique when organizing this separate living space.
2. When it comes to building an ADU, few people think about the fact that this is the most environmentally friendly housing unit. Today, advanced builders make ADUs from ecologically safe materials, and after work completion, they dispose of construction debris. At your request, specialists can equip each ADU element with eco-technology, whether it is solar panels on the roof, energy-efficient lighting, or renewable energy sources. On par with this, all these principles do not contradict any local regulations and building codes, and you will live with a sense of accomplishment in nature conservation.
3. Let’s finish our review with the most excellent ADU feature, namely that this unit on the same property as your main house will become a place of leisure, which you do not have time for. Can’t get to the cinema because of a busy schedule? Welcome to the home theater. Is the subscription to the sports gym too expensive? The doors of the home gym are always open. Have you always dreamed of doing art or pottery? The new art studio on the site of the old garage will be the place of your inspiration.

Recently, ADUs in the backyard cottages format have become increasingly popular and the main explanation for this trend is the fact that this particular configuration is the ideal pick to each of these three factors.

ADU Non-Obvious Weaknesses

The title of our review includes the wording “pros and cons”, so it would be unfair to keep silent about some of the disadvantages of this living space, especially, as in the case of other projects, there are more than one drawbacks.

We highlight the following four disadvantages of the accessory dwelling unit:

• Comprehensive zoning regulations. Despite the fact that the ADU is a small annex next to the primary residence, it takes a lot of effort and time to obtain permits for its construction. This is due to complex formulations in zoning regulations, which contain many details from the need to erect an own entrance to compliance with all setbacks.
• Additional property tax. The new ADU on your property automatically increases property taxation, which means that once a year, you will pay a slightly higher price than usual.
• Additional utility bills. Earlier we mentioned that ADU is an energy efficient additional living space, however, if you use light, water or gas uncontrollably, then no solar panels on the roof will save you from increasing utility bills.
• Cleaning costs. This aspect is more important in terms of physical costs than economic ones. The ADU has a small area, but if you plan to arrange a big cleaning of the entire property, then you will have to spend more effort due to the availability of additional space.

Now, the question arises of whether these shortcomings can tip the scales in favor of abandoning ADU construction. Our answer is definitely no because you can solve each of these points. For example, hire lawyers to settle disputes over construction permits, share responsibilities within the family so that more than one person cleans the ADU, and you can easily offset the increased tax with the help of rental income.

Frequently Asked Questions – FAQ

How will the appearance of a new ADU affect my daily life?

A simple answer, in an exceptionally positive way. A more detailed answer: ADU will solve all your everyday problems, allow you to receive extra income, have a great time with your family, work effectively in a remote format, and make all your interior and exterior dreams come true. Moreover, do not forget about increased property value, as this fact means an upgrade of your well-being in the future.

How has the average cost of building an ADU changed in recent years?

Regardless of the economic situation in the country, ADUs are always among the affordable housing options. The average cost for a typical guest house has a price tag of about a quarter of a million dollars, JADUs cost much less, while the price for a customized garage conversion with an area of 1200 sq.ft. May require much more investment.

What is the best method among all the financing options for building an ADU?

The construction of accessory apartments always requires the search for extra funds. Fortunately, many types of profitable loans are available to you today, e.g., home equity line, home equity investment, or personal loan. The most crucial thing to remember is that due to rental income and increased property value, you will close the loan very quickly anyway.

Can you name the three main pros and cons of building accessory dwelling units?

If you have an ADU it means you have the opportunity to rent this unit, provide comfort to all family members, whether they are adult children or elderly parents, as well as solve all pressing household challenges. The disadvantages include confusing zoning laws from local jurisdiction, increased taxes and construction costs if we are talking about complex projects.

How to effectively use ADU for aging parents’ accommodation?

Among all the additional housing options, ADU is the best pick if you want to transfer aging parents closer to you. This tiny house has all the necessary amenities, retains an important sense of personal boundaries, if desired, you can equip it with a safe bathroom, as well as a smart system with which a family member can call for help.