Adding an Accessory Dwelling Unit (ADU) or Detached Accessory Dwelling Unit (DADU) to your property comes with pros and cons. It’s critical that you make an informed decision before setting out on your journey, as the process from ideation to approval is no joke! With such a lengthy process, you need to make an informed decision as to whether or not a new addition to your home is the right choice. And we’re here to help!
Let’s dive into the pros and cons of these unique home additions and how to decide whether or not it’s the right choice for you.
The Pros of ADU and DADU Homes
1. Increased Property Value
Adding ADU or DADU spaces to your property can increase its market value. In high-demand areas, these units can make your home more attractive to buyers.
2. Additional Income
Where regulation allows, renting out your new addition can provide a steady stream of passive income. When you’re strategic, the extra income can be beneficial in offsetting mortgage costs or funding other investments.
3. Flexibility
These units are versatile! An ADU or DADU can be built specific to your lifestyle and needs. They can serve as a home office, guest house, or living space for family members. They also provide flexibility to adapt to changing needs over time.
4. Multigenerational Living
Sometimes known as “in-law suites”, ADU and DADU additions are ideal for families that need to accommodate aging parents or adult children. They offer privacy and independence while keeping loved ones close by.
5. Sustainability
Especially when built mindfully, ADUs and DADUs can promote sustainable living by maximizing the use of existing properties and reducing the need for new construction. In the long run, this maximization can help minimize urban sprawl.
The Cons of ADUs and DADUs
1. Initial Building Costs
These units can require a significant upfront investment. There are costs for construction, permits, design fees, and more. That’s why we offer free consultations and help you determine your Do Not Exceed (DNE) number for your budget. We can also help you identify the appropriate financial products for your needs.
2. Regulatory Challenges
Navigating local zoning laws and obtaining the necessary permits can be a complex and time-consuming process. Every city and state has its own rules, which can sometimes be restrictive. We have nearly 30 years of expertise that we put to work for you, saving you decades of research and energy to get through the process.
3. Impact on Privacy
Even if you have a large property, adding another unit will affect your privacy—and the privacy of your neighbors. You’ll need to consider the layout and placement of your ADU or DADU to minimize disruptions.
That’s why we put you in touch with our Trusted Project Design Partners. They manage this part flawlessly and work with you to ensure everything about your new project fits your lifestyle (and budget).
4. Maintenance
Like any project, ADUs and DADUs require regular maintenance. Especially if it is separate from your main home, the unit will require upkeep of the building, utilities, and more.
5. Potential for Vacancy If you can (and plan to) rent out your unit, there’s always the risk of it sitting vacant. Don’t make rental income projections on having 100% capacity all the time.
Is An ADU or DADU Addition Right For You?
There are a few things you can ask yourself to understand if adding an ADU or DADU unit to your property is the right choice. It all requires careful consideration of your unique situation and goals. Use these key questions to help guide your decision:
1. What Are Your Long-Term Goals?
Consider what you’re hoping to achieve with your unit. Additional income? Flexible living space? Accommodating family members? In some cases, adding a new building to your property might not be the right or only solution.
2. Do You Have the Financial Resources?
Again, building an ADU or DADU on your property can be pricey. Before setting out, assess your budget and financing options. Get a pre-approval just like you would for buying a house. Don’t waste time and money before determining if you have the means to afford your new addition first.
3. What Are Your Local Regulations?
Some states, cities, and jurisdictions are more ADU-friendly than others. You need to research and understand your city’s zoning laws and regulations to gauge the feasibility of your project.
4. How Will It Affect Your Lifestyle?
Your new addition could impact your day-to-day life, even after completion. Consider factors like privacy, property aesthetics, disruptions, and proximity.
5. What is the Market Demand?
If you plan on renting out the unit or even using your addition to boost your property value, evaluate the market in your area. High demand for rental properties can make your ADU or DADU a lucrative investment, while low demand could make it hard for you to cover your new expenses.
We Can Help You Decide
Our goal is to help you navigate the ADU and DADU process, making it as enjoyable as possible. We will help you determine the feasibility of your project, guide you through permitting, help determine your DNE for your budget, and ensure your project is painless. For anything we can’t do in-house, we refer you to one of our Trusted Project Design Partners to ensure everything from design to construction is completed quickly, professionally, and flawlessly. The best part? Having eBuilt on your team is 100% free.
If you’re ready to explore the possibilities of an ADU or DADU unit, book your free consultation with eBuilt today. We’ll work together to make the most of your property and achieve your housing goals!
