There are two new buzzwords going around that may have caught your ear as a homeowner, especially if you’re looking to maximize the value of your property, create extra living space, or generate rental income. Those buzzwords are ADU (Accessory Dwelling Unit) and DADU (Detached Accessory Dwelling Unit).
At eBuilt, we’re here to guide you through the process of these sometimes complicated builds and make your dream of adding an ADU or DADU a reality.
Whether you’ve just discovered this new opportunity or are hearing these words for the first time, we’ll walk you through everything you need to know. Let’s get into it!
What is an ADU or DADU home?
ADU and DADU homes are secondary housing units located on the same lot as the primary residence. While similar, there are some key differences between the two. Here’s a quick breakdown:
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- ADU (Accessory Dwelling Unit): This is typically an additional unit attached to or within your main home. Something such as a basement apartment, converted garage, converted loft attic, or home extension.
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- DADU (Detached Accessory Dwelling Unit): The key with DADU is the word detached. This is a separate, stand-alone structure on your property, such as a guest house, carriage house, or small cottage in the backyard.
Most ADU and DADU units have their own kitchen, bathroom, and living space, making them fully functional homes but on a smaller scale.
Why Build an ADU or DADU?
There are so many benefits to adding an ADU or DADU to your property. Under the right conditions, this can be a great opportunity for your home.
Here are just a few of the reasons why someone might add an ADU or DADU home to their property:
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- Increased Property Value – In the right market, ADUs and DADUs can significantly boost your property’s value, making it a smart investment. The next few benefits are why these builds can increase your home’s value.
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- Rental Income – Depending on state rules and regulations, you may have the ability to rent out your ADU/DADU. This can provide a steady stream of income and help supplement things like mortgage payments.
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- Multigenerational Living Sometimes called “in-law suites,” ADU and DADU spaces offer a perfect solution for families wanting (or needing) to live close to each other while maintaining privacy and independence.
- Flexible Living Space – Some folks use their ADU and DADU additions as a home office, guest house, gym, or living space for adult children or elderly parents. The sky’s the limit for how you choose to use your addition.
What Are the Steps?
Unfortunately, getting started isn’t as easy as hiring a contractor or picking up a hammer. There are several steps to take, and it can be a lengthy process! In fact, only one-quarter of those who set out on the initial journey make it to the finish line and complete their project. One of the biggest goals we have here at eBuilt is to make that number 80%—and to have it feel like an enjoyable experience.
Here are some of the steps:
Understand Local Zoning Laws and Regulations
Will your property even allow for an ADU or DADU build? The first step is to verify that your property is zoned to allow these structures. Every state and city is different, so you need to know what’s permitted in your area.
Design Your Unit
Work with an architect or designer to create plans. Not only do these need to meet your needs, but they also must comply with local building codes, so it’s important to have a professional in the area complete this.
Get Your Permits
You can’t just build willy-nilly, even if it is your own property. You’ll need to obtain permits from various local government departments for a variety of aspects of the build. This is one of the most complicated parts of the ADU/DADU process.
Hire a Builder
It’s crucial to ensure the builder you hire is reputable, reliable, and has experience building ADU and DADU units. This step can take time but is well worth doing thoroughly.
Construction
With all these steps lined up, construction can begin. Construction also has its own set of steps, which can take a long time to complete, such as site preparation, building, and finishing the suite. If you haven’t selected the right builder, these stages can drag on. That’s why step 4 is so important.
As mortgage and lending professionals with nearly 30 years of experience, there is one more step that is crucial to highlight, and it’s this:
You need to line up the appropriate funding for your project before steps 2-4. You don’t go house shopping without a pre-approval, and you shouldn’t take on building an ADU or DADU home without knowing what is financially feasible.
At eBuilt, we help our clients determine their Do Not Exceed (DNE) number to construct a budget for the project. That number will help determine your plans and secure permits and will be critical for your builder to adhere to.
Where Are ADU Homes Most Popular?
Regulation varies by state; some are more welcoming to ADUs and DADUs than others. Here are a few that stand out:
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- California
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- Oregon
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- Washington
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- Vermont
- Massachusetts
Let eBuilt Be Your Guide
Navigating the financial, permitting, and building processes for an ADU or DADU can be tricky, but that’s where eBuilt (and our 30 years of experience) come in. We’re here to help you every step of the way, from understanding local regulations to securing permits and finding the right builder. If it’s something we don’t do in-house, we’ll connect you with one of our Trusted Design Partners to get the job done. We’re dedicated to making the process as smooth and stress-free as possible for you.
If you’re ready to unlock the potential of your property with an ADU or DADU addition, book your free consultation with us today. Let’s turn your vision into reality!
