Top 10 Benefits of Adding an ADU to Your Property

Imagine a growing family that loves their home but needs more space. The thought of buying a new property is overwhelming, both financially and emotionally. Why not maximize the potential of the property you already have? By adding an accessory dwelling unit (ADU), you can create additional living space tailored to your needs.

What is an ADU?

An accessory dwelling unit (ADU) is a secondary housing unit on a single-family residential lot. In California, ADUs can be:

• Detached: A separate building from the main house, such as a cottage or guest house.
• Attached: An addition to the main house, like a basement apartment or garage conversion.
• Interior: A converted space within the main house, like an attic or basement that becomes a separate living area.

ADUs must have their own entrance, kitchen, and bathroom to qualify as independent living spaces.

10 Benefits of Adding an ADU

Adding an ADU to your property offers numerous advantages that can improve your lifestyle and financial situation. Here 10 reasons we think you could love adding an ADU to your property:

1. Additional Living Space: ADUs provide extra space for family members, such as aging parents or grown children returning home.
2. Rental Income: Renting out your ADU can provide a steady source of income, helping to offset your mortgage or other expenses.
3. Increased Property Value: An ADU can significantly boost the value of your property, making it a smart long-term investment.
4. Affordable Housing: ADUs offer affordable living options in high-cost areas, benefiting both homeowners and renters.
5. Flexibility: Use your ADU as a home office, guest house, or rental unit. The possibilities are endless.
6. Privacy: ADUs provide a separate space for guests or renters, ensuring privacy for both the main house residents and ADU occupants.
7. Sustainability: Building an ADU is often more environmentally friendly than constructing a new home, as it uses fewer resources and less land.
8. Tax Benefits: Homeowners may be eligible for certain tax deductions related to ADU construction and rental income.
9. Multigenerational Living: ADUs offer a convenient solution for multigenerational families to live together while maintaining independence.
10. Home Office: In today’s work-from-home culture, an ADU can serve as a quiet, dedicated office space away from the main living area.

You May Even Qualify for a State Grant!

The California Housing Finance Agency (CalHFA) is an agency of the state government that provides low-cost home financing to first-time and lower-income homeowners. Earlier this year, the state passed a budget that included $100 million in grants to help homeowners finance ADU construction.

CalHFA created the ADU Grant Program to distribute grant money to eligible homeowners. The grant provides up to $40,000 per homeowner to help offset some of the costs of a typical ADU project. Since the $40,000 is a grant, not a loan, homeowners never have to pay it back. Homeowners who qualify as having a low or moderate income are eligible for the grant.

Learn More

Adding an ADU to your property can be a transformative investment, providing flexibility, income, and value. Contact Keycon Construction & Design today to explore your options and start planning your ADU project.