When purchasing a piece of property it is important to keep every avenue of potential value in mind. It is a long-term investment that can benefit you for years to come. Accessory dwelling units are a property feature that are sure to quickly and effectively raise your property value, while providing you with extra income opportunities that can be a real game changer for your finances.
What is an Accessory Dwelling Unit?
Accessory dwelling units (also called ADUs or modular homes) are secondary structures on a property with a main house or building. Above garage units or basements with a separate entrance from the main building also count as ADUs. They can immediately raise the value of any property when well maintained. An ADU can be used as a long-term rental for an individual or family, or depending on local regulations, as a nightly rental for out of towners or visiting family and friends. You can also use an ADU for your own purposes, such as an office space, art studio, or gym.
Life and Property Benefits of an ADU
1. Long-Term Property Value
A modular home will increase your property’s value immediately. You might also notice properties with ADUs selling for more. If you are in the market to buy property, keep in mind that the extra price comes with financial benefits in the long-term for you and your family.
2. Passive Income
Look into the local laws and regulations in your area to be sure what kinds of rentals are allowed. Depending on where you live, your ADU could provide passive income each month. You can rent it out yearly, monthly, or potentially nightly. Because housing has become so hard to come by in some areas, this is also a great way to provide a valuable asset to your local community.
3. Extra Living Space
You might not want to rent out your ADU, and that’s totally fine too. The increase in property value and option to use it for passive income is still there. Perhaps you just want some extra living space of your own. A modular home can be used as a gym space, your own area to relax each day and create art, or even an office to get a little more privacy away from your main living area.
4. Space for Friends and Family
Having extra room for friends and family, where they can have some privacy but close proximity to you, is an amazing thing to be able to offer. Whether it’s just for a few days to spend quality time together, or to provide space for a loved one who needs a place to stay, an ADU on your property will feel like an invaluable asset to the whole family.
5. Storage Space
An ADU is also great for providing a little extra storage space should you need it. Maybe you have outdoor gear or art supplies that you just want to keep out of your main living area—a modular home is a great way to keep your valuable items safe yet out of the way.
6. Investment in Your Future
Ultimately, however you choose to personally use an ADU, it will add value to your personal life and your financial wellbeing in the long-term. It’s an investment that gives more value than it costs in most cases, and definitely something worth considering when looking at property this year or in the future.
Whether you are looking to add a modular home to your property or to purchase something that already has an existing ADU, you are sure to see a major benefit to your personal finances and property value year after year.
