What Is It?
An Accessory Dwelling Unit (ADU) is a small unit either attached to a main home or a freestanding unit on the main home’s property. Whether attached or not, it is not able to be sold separately. Some communities include standard for accessory dwellings that requires one of the two dwelling units – either the principal dwelling or the accessory dwelling – to be occupied by the property owner in order to avoid an absentee landlord situation in which structures may sometimes fall into disrepair. Accessory dwelling units might be in an accessory building, such as a converted garage or new construction, or the accessory dwelling might be attached or part of the principal dwelling, such as a converted living space, attached garage, or an addition.
Rental Income
ADUs may be used to house family members, space for a home office or home based business, or when allowable by the municipalities zoning laws it may be rented on either a short or long term basis which helps the national affordability issues that we have been experiencing by offering affordable housing to the renter and the rent income to offset the mortgage for the property owner. This is part of the solution in addressing the housing shortage and the impact this sometimes has on attracting employees to an area.
Reduced Expenses
Constructing an ADU is less than constructing other homes because the infrastructure is already in place. Infrastructure such as land, utility hookups, if converting or adding to an existing p
Increased Property Value
The ADU’s kitchen, bathroom and bedrooms are viewed as additions to the primary home, causing the value to rise. How much the value will rise depends upon the zoning, the surrounding neighborhood, the size of the addition, and the demand for these types of amenities. Wondering what an ADU would add to your home? That’s what we are here for, we are happy to give insight into that.
ADUs continue to increase in popularity because they help people who are interested generational living with their family or adding some income. If you’re looking for more information on ADUs this guide from the AARP is a valuable resource.
For those in the city of Grand Rapids, MI the municipal code governing ADUs can be found here.