Have you ever wished to create more living space on your property? How about earning rental income? It sounds like a good idea, right? It is. But ADU construction can be quite expensive. However, since you’re renting out the space, it is certainly a good idea.
Why Would You Consider ADU Construction?
Just imagine having a private getaway sitting in your backyard. Since the government permitted this type of construction, homeowners across the country are now investing in their cottage retreat or ADU. However, they’re not just building it to have a place to retreat after a long week of work. Rather, they are building one to help them earn some rental income.
What is ADU?
It has several names. But the most common one is a detached accessory dwelling unit. It’s a standalone house built behind your main house. By building one, you can maintain privacy while creating extra living space for yourself or family members. It has many benefits. It has no shared walls so you can maintain privacy.
Passive Rental Income
ADU can be used so you can have a passive rental income. According to Seattle Times, “Some are renting right now for around $1,200 to $2,000 per month or up to $24,000 per year. As a vacation rental, a cottage could earn you even more. This can help homeowners of modest means stay in their homes or simply put extra cash in your pocket to pay the mortgage or for home improvements.”
What is the Cost of Building an ADU?
The national average cost to build it is between $175,000 and $350,000. But some are paying around $260,000. The overall cost will depend on the type of construction. The cheaper type of prefab. It’s a modular cottage that is more economical than a customized ADU. It is built off-site. The pieces are assembled at the final location. Although it can be expensive to build an accessory dwelling unit, it is worth every penny, if you choose to have it leased.
What are the Benefits You Can Reap from Building an ADU?
Boost Property Value
Besides having to earn passive income, an ADU can also increase your property value. It’s the second most popular reason for building it. Most homeowners are willing to pay more as ADU can increase flexibility, privacy and reduce monthly living expenses.
Have a Space for Guest
If you love to host parties or invite your family from out of town, then having a backyard cottage is ideal. An ADU can offer a perfect solution to accommodate them. While they stay in the ADU with a comfortable bed to sleep on, you will have privacy in your main home. They have their own space if they need alone time during their visit.
How to Start Building an ADU?
To help you get started with ADU construction, you need to consult with an expert. Contact us here to know more.