What to know before building an ADU

Don’t build an ADU until you consider these things first!

 An ADU is short for an accessory dwelling unit meaning a smaller house added to your existing property.

ADU’s provide such a wide range of opportunities – generating rental income from monthly rentals or AirBnB, providing a space for a relative to live close (but not too close!) and the list goes on for possibilities.

Here’s a few things to start looking into if you’re considering adding an ADU to your property:

1. Check on your local regulations regarding size, design and placement of the unit. 

2. Factor in that the cost will include permits, materials, labor, and any necessary utility connections. Also, property taxes will increase generally in the range of 1-1.5% of the build cost and check in with your insurance carrier to see how much insurance will increase.

3. If you are planning on using your ADU for rental income, check on the local regulations for that type of rental, including parking regulations.

An ADU can increase the value of your property and provide so many opportunities for it’s use. If you want to check out some ADU completed floorplans that are already designed, let me know!