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Virtual Mag > Blog > Business > What Is an ADU? All you need to know about it
Business

What Is an ADU? All you need to know about it

Sufyan Ali
Last updated: 2023/05/25 at 9:35 AM
Sufyan Ali
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8 Min Read
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Are you looking to buy a home or a rental property? Do you need help determining the right thing to do? You are not alone; many people fear buying a rental property as it might be too risky.

Contents
What Is an ADU?How Much Does an ADU Cost?Benefits of ADUsTypes of ADUsDetached ADUAttached ADUGarage ConversionsJunior ADUsSteps and Considerations When Building an ADUResearch and DesignBudgeting and FinancingObtaining PermitsConstructionUtility ConnectionsInterior and Exterior FinishesFinal Inspections and OccupancyMaximize Your Property With ADUs

On the contrary, an accessory dwelling unit (ADU) might be your solution. An ADU is also known as an in-law apartment or granny flat. The name gives it away, and these units are added to existing houses to provide extra space.

If you want to learn more about what is an ADU and how you can benefit from it, then read on.

What Is an ADU?

An accessory dwelling unit, often referred to as an ADU, is an additional, secondary dwelling unit on a property. An ADU can be a small apartment, cottage, or garage conversion. 

ADUs provide extra living space for a variety of different people—often without taking up valuable land area. They often have their own entrance, kitchen, bathroom, and living space. This offers residents complete privacy and independence.

How Much Does an ADU Cost?

As ADUs pose unique considerations to home construction projects, they may come with higher costs for design and construction. The total cost of an ADU can vary greatly depending on the complexity of the build and the type of materials used.

The costs may include the price of the materials and labor for design, engineering, and construction, application, and permit fee. It also includes any necessary changes to existing utilities or infrastructure.

Depending on the size and design of the ADU, the project can cost anywhere from $25,000–$200,000, with the average cost being between $50,000–$100,000.

Financing options for ADUs include down payments, home equity loans, and Federal Housing Administration (FHA) loans. Depending on the location, state, and local tax credits may also be available.

For those unable to access traditional bank loans, community-based lenders may provide financing for ADUs. This includes micro-lenders. 

Benefits of ADUs

ADUs provide a solution to the growing housing supply crisis. It also allows homeowners to maximize the use of their existing property.

Homeowners can create additional affordable housing options. Having ADUs offer a more cost-effective alternative to building new homes or apartments.

With them, you can start utilizing existing infrastructure and land. They can even become an additional income-generating source through rental opportunities.

Additionally, they offer a flexible living space that accommodates aging parents, adult children, and extended family members. But they still maintain privacy and independence for everyone.

Types of ADUs

ADUs come in various forms, each with its design considerations and advantages. These include the following:

Detached ADU

This type of ADU is a stand-alone structure that is separated from the main house. With a detached ADU, you can enjoy privacy and flexibility. 

It typically has a kitchen, laundry, and bathroom. It’s an excellent option for long-term rentals and guest accommodation. 

Attached ADU

This type of ADU is attached to an existing single-family home, such as by being joined to the main house via an interior door. This allows the tenant to have the convenience of being close to the main house while still being able to access the extra living space.

The attached ADU typically contains a living space, kitchen, bathroom, and at least one bedroom. This type of living space is attractive to many renters, as they have all the components of a modern living space that are typically unavailable in a single-family home.

Garage Conversions

Garage conversions are common and provide considerable benefits. Depending on the size and function desired, they can be simple or complex.

They can include additional living and sleeping areas, a bathroom, and even a mini-kitchen. They often also include extra storage, which can provide value to homeowners.

For those looking to convert a garage into a dwelling unit, you can see these garage conversion experts. They can help make this transition smooth and successful. By utilizing their services, homeowners can be sure they are taking the necessary steps for a successful garage conversion project.

Junior ADUs

This is a subset of ADUs and is generally smaller in size. These units are typically around 500 square feet or less. They are independent of the main residence.

JADUs are often cost-effective and quicker to build than other ADUs. They can be created within an existing home, on top of a garage, or in the backyard. They have their own entrance, heating, and cooling systems, and occupants have distinct living spaces with separate utilities.

Steps and Considerations When Building an ADU

Constructing an ADU requires careful planning and execution. Here are the key steps and considerations involved in building an ADU:

Research and Design

Begin by researching local regulations. Check zoning requirements and building codes related to ADUs in your area.

Engage with an architect or designer to create a well-thought-out design. Look for one that maximizes the available space and meets your specific needs.

Budgeting and Financing

Determine your budget. Consider design fees, permits, construction costs, and additional expenses. Explore financing options such as personal savings, home equity, or construction loans.

Obtaining Permits

Work with your local municipality to obtain the necessary permits. You’ll also need approvals for construction.

Construction

Hiring a reputable contractor or builder with experience in ADU construction is best. Do regular site visits to monitor progress and address any issues that may arise. Then, consider the timeline and potential disruptions during the construction phase.

Utility Connections

Coordinate with utility providers to establish separate electricity, water, and sewage connections. It may involve working with professionals to extend or create new connections.

Interior and Exterior Finishes

Choose appropriate materials, fixtures, and finishes for the interior and exterior. Consider durability, aesthetics, and maintenance requirements.

Final Inspections and Occupancy

Schedule final inspections with local authorities to ensure compliance with building codes. Once approved, you can move forward with furnishing and occupancy.

Maximize Your Property With ADUs

Accessory Dwelling Units (ADUs) are perfect for decreasing urban sprawl and providing an affordable housing option for many people. With the flexibility of installation, they’re becoming increasingly popular and can benefit homeowners looking to provide additional income.

It’s wise to research your local regulations and talk to a specialist to learn what is an ADU and how it can work for you. Get started today towards adding an extra income and an extra home to your property portfolio!

Was this article helpful? If so, check out our blog for more informative content.

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