A Complete Guide on Accessory Dwelling Units

More and more accessory dwelling units are starting to appear on the market. Others are considering adding an accessory dwelling unit to their home. So, what are they all about? That is what we want to discuss on this page. This is a complete guide to accessory dwelling units, or ADUs for short.

What is an ADU?

First things first, what is an ADU? Well, an ADU is when a property is split up into separate dwellings. For example, if you decided to add a flat to the basement of your property. An ADU should not be accessible from the main property.

Most people will make an ADU to rent out, although there are other reasons why you would want one.

Do You Need Permission to Make an ADU?

In most towns and cities, no. You will need to look into the rules for your state, or whether your HOA has any rules related to ADUs. However, for the most part, you are free to make an ADU in a residential property. The rules are different with commercial properties.

You do have to remember that there may be additional rules surrounding the building of an ADU. For example, some states will not let you build an ADU unless the owner continues to use the majority of the property i.e. a property owner cannot create an ADU and move out.

You will likely need to obtain planning permission to make an ADU if you are building an external building on your property.

Can an ADU Increase the Value of Your Property?

It depends. You would have to consult with a real estate agent. Some people have seen the value of their property rise with an ADU, while others have seen the value of the property fall. There are a variety of different factors that can impact this.

Can You Legally Rent an ADU?

Yes. You can rent out an ADU. Of course, you will need to ensure that you do everything ‘above board’. This means that you do need to be looking into the landlord rules and regulations for your area. Don’t forget, if you are renting out an ADU, then you will need to pay taxes on the rental income.

Can You Sell an ADU?

In some cases, yes. You may need to consult with a property lawyer and a real estate agent. In some cases, the property can be split up and sold piecemeal. Although, this is something that can vary from state to state. If you can sell your ADU, then it is a brilliant idea if you have a larger property that you can’t really use the entirety of.

Conclusion

So, there you have it. You now know the basics of having an ADU. If you are planning on building an ADU, then consult with a real estate agent and a property developer. If you are planning on renting one, then great! All you need to do is ensure that your landlord plays by the rules.

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