Know About Accessory Dwelling Unit


Accessory Dwelling Units or ADUs is getting popular among many homeowners. Especially it is popular among homeowners who are looking for conventional ways to make passive income. This extended space with a separate kitchen and bedroom can be used for long-term rental purposes. It also can be used for guest space and adult child housing. It is an extended portion of a house that can be either attached or detached from the primary home. It is a secondary unit with a separate kitchen, living area, bedroom, and a private entrance.

Potential cost

The cost of an ADU will vary based on materials and square footage. In general, a new 500-square-foot one-bedroom ADU will cost you not more than $200,000. The average cost of an ordinary ADU is between $100k and $150k. The cost could extend up to $200k depending on materials, labor cost, and square footage.


Whether it is detached or attached ADU provides additional income. Homeowners can select a full-time tenant or part-time tenant based on their preference and accommodation facilities. When they sell their house, it adds great value. So, it is a great way to increase income. In addition, it includes versatile space in your house that can be used for different purposes such as a home office, guest suite, studio, or extra playing space for kids.

There are some other benefits of ADU like earning a passive income or having more space to enjoy happy times with family and friends. But the most important advantage of ADU is it increases the value of the property. It improves housing affordability by allowing people with lower incomes to live in their own houses. Areas, where the population is growing rapidly, are facing issues with accommodation. ADU concept opens vast opportunities for those populated areas.


Though ADU is a great source of income, it is an expensive project indeed. Besides constructing the main structure, you have to spend a handsome amount of money on designing and crafting the interior. To make the space feel cozy, you need to include all the facilities for your guests. If you build the structure for rental purposes, it is necessary to calculate all the costs for constructing the kitchen, bathroom, and other necessary home components. You also have to spend a lot on regular repairs and house maintenance.

Furthermore, ASU has some other drawbacks like increasing the property tax and higher maintenance costs. Homeowners have to pay more tax than before. Your privacy will be hampered when you rent this extended area. Especially when you both have the same entrance. You also have to spend extra money and time to maintain this extended area.