3 Ways an ADU Can Benefit You
Accessory Dwelling Units (ADUs) are a popular secondary housing option. There are many benefits to adding a secondary unit to your property, like generating rental income, increasing property value, and caring for family.
Almost 10,000 second units were permitted in California last year, as thousands of homeowners seek the benefits of extra space, rental income, increased property value, and more. But for every second unit completed, scores more were abandoned, canceled, or never started. The reasons are simple: building a second unit—especially in California—is difficult, time consuming, and expensive.
Financial gain through rental income is the most common motivation, followed by housing for a family member or helper. Construction costs, design constraints and financing are the most common barriers to building ADU. Whether as a guest space, personal getaway, or rental unit, HAUS+ makes it easier than ever to invest in your home.
Here are three reasons why an ADU may be perfect for you:
1. Generate Rental Income
Financial gain through rental income is the most common motivation for building an ADU. 80% of ADUs rent for market rates, or a slight premium, compared to apartments of similar size and location. ADUs seem to be at least as attractive to renters as apartments in multifamily buildings, and may be preferred by them.
The rise of vacation rental platforms like Airbnb and VRBO have caused more and more property owners who have historically rented to long-term local tenants, to turn to short-term rental models to increase their rental income. This shift has inadvertently had a restrictive effect on rental housing supply as a whole and made more development for long-term, market rate rentals a necessity.
Given the steep trend of rent averages in the San Francisco Bay Area, it is no surprise that ADU vacancies are filling like hotcakes and homeowners are making a significant amount of money from their rented units. Your ADU is well worth the investment, as it will most likely fill almost immediately.
Smaller families do not need the amount of room that an ordinary single-family home generally offers. Instead, they’re looking for something smaller and cheaper. Something exactly like an ADU. An ADU can be so lucrative that the rent will cover your mortgage and other housing costs. This means you essentially get to live for free as you pay off your loan!
At any one time about 80% of ADUs are in use as long-term residences. The remaining 20% have alternative uses, but can be converted to housing with no further construction or permitting. Changing uses is part of the attraction for owners.
With HAUS+, it's never been easier to add to your property's revenue potential. In the San Francisco Bay Area, payback time on your ADU is as little as five years! For more information, click here to Schedule a Free Consultation.
2. Increase Property Value
ADUs are a wise investment for families because they are built on existing property that was previously unused. By creating a secondary backyard home, you're adding to your home's versatility and revenue potential that can boost your home’s market value.
With the price of rent soaring, people are seeking long-term housing for their family members such as “boomerang kids” and elderly parents. As a safe and private housing option, ADUs are an affordable investment; one that appreciates, not just in value, but in long-term utility vs. rent for dorms, college housing, senior living facilities, and nursing homes.
ADUs increase property value by adding equity to your home. It can also inflate the value of your home by 20 to 30 percent. It's no wonder why more families in the Bay Area are choosing to add ADUs to their properties. If you're looking to increase your property value, then ADUs are a great long-term investment for your family.
It's never been easier to add to your property's value. HAUS+ now offers in-house financing options, click here to Get Pre-Approved Today!
3. Care for Family
Commonly referred to as in-law suites or granny flats, ADUs provide homeowners with flexible space to support family and friends. Whether that means kids coming home from college or allowing elders to age in place, many homeowners long term plans revolve around supporting their loved ones than a purely financial investment.
More people are looking for alternative living options for their family as a smart long-term investment. Since more young adults are living at home than at any other time in the past 100 years, ADUs are a flexible housing option. The skyrocketing cost of housing might just result in a national housing crisis. In fact, Harvard University conducted a study that found that the average cost of rent in America has risen by 20% while the average cost of housing has increased by 41%.
ADUs are a smart way to increase property value and keep family together. They let older folks age in place by both creating a new, age-friendly living space and by creating a separate space for a caretaker to stay close at hand. They are also an exceptional way to generate income, guarantee privacy, and help alleviate the affordable housing crisis.
As a private and independent home, ADUs give people and their adult children, parents, or caretakers the space that they need to grow as families and individuals. With the addition of an ADU you'll never have to worry about fumbling over each other or invading each other’s space again.
Talk to a HAUS+ expert today! Click here to Schedule a Free, Zero-commitment Consultation and learn how you can unlock your property's potential.
Building an ADU is expensive, time consuming, and extremely complicated. Buying your HAUS+ is affordable, quick, and effortless. Designing, permitting, and building a custom home takes months to years. With HAUS+, we'll hand you the keys in weeks.
Unlike the competition, HAUS+ takes care of everything; that means no assembly required, no red tape, and no hidden costs for you. We offer in-house financing on all of our units, so you can be making money even as your HAUS+ pays itself off!
HAUS+ is the go-to solution for all your ADU needs. For more information about building a secondary unit, click here to Schedule a Free Consultation with a HAUS+ specialist today.