New Inman contributor Lindsey Harn writes that accessory dwelling units offer a variety of benefits to a variety of tenants, from college students to elderly family members.
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As real estate prices rise across the country, more and more homeowners are relying on ADUs to bring in extra income. Accessory dwelling units add great value to many homes and we continue to see more of them popping up along the Central Coast.
According to the new law, AB 1033, property owners in participating cities will be able to build ADUs on their land and sell them individually, following the same rules that apply to condos. ADUs benefit both homeowners and renters because they help renters save money and help homeowners bring in more income.
rental income
ADUs are often popular with renters because they tend to be cheaper and safer to live in. ADUs offer a level of isolation and privacy because they are typically smaller, self-contained units located on the same property as the main residence.
They are also popular with current homeowners because they can increase property value when they plan to sell their home. Many homebuyers look for properties with ADUs because they offer the opportunity for additional income. Since home ownership developments are not financially feasible for some, the additional income from an ADU can help pay for the mortgage and home maintenance.
elderly
Dwelling units can also be ideal locations to house elderly relatives because they provide a separate living space and close proximity in the event of an emergency. New state ADU laws help increase affordable rental housing and improve safety for tenants who may have previously lived in substandard rental conversions.
Some jurisdictions offer incentives for homeowners to build ADUs, such as reduced fees, an expedited permitting process, or financial assistance. These incentives can encourage the development of ADUs and promote affordable housing goals.
In college towns, people sometimes use garages as living spaces. These units have given tenants a lot of worry and fear in the past, but with a reliable ADU, safety is the top priority.
better location
One of the most important items on a renter’s checklist is where they will live. Accessory dwelling units are typically located in established communities, providing tenants with the opportunity to live in desirable areas that offer them amenities that differ from regular stand-alone rental properties.
A key highlight that many people don’t usually mention when discussing ADUs is their sustainability. Due to their smaller size, they require less energy, making them more sustainable than other large rental properties. Water and electric bills are constantly rising, and renters can save hundreds of dollars on utility bills if they decide to rent an ADU, which is a major selling point.
save costs
High housing costs and low inventory on the Central Coast make it relatively difficult for people to rent or buy a home. The city relies heavily on ADUs to pass due to regional housing needs assessments.
according to a SLO Tribune article, “The city’s annual goal is 32 ADUs per year, and the city received 33 applications,” he said. “These ADUs will help grow and diversify the rental market.”
As the rental market becomes more expensive in many markets, ADUs can provide affordable housing for students. Homeowners in communities near colleges and universities can benefit from adding an ADU to their property, as many students seek housing close to campus but still in established neighborhoods.
Residential units often feature unique architectural designs and layouts that provide tenants with a unique and engaging living experience. This may appeal to those looking for something different from standard apartment living.
Demographics
Accessory dwelling units can cater to changing demographics, such as the increasing number of single-family households or multi-generational living arrangements. This can broaden the market of potential tenants. Also, local zoning laws and regulations may limit the ability to build ADUs or impose restrictions on their use.
Complying with these regulations can be time-consuming and expensive for landlords, but that shouldn’t stop people from exploring their options. The extra rental income and added home value should more than make up for the costs and extra time incurred.
Lindsey Harn’s results-oriented approach, unparalleled work ethic, integrity and honesty have earned her a position as a top producer, as well as the loyalty and respect of clients and colleagues.Contact Lindsey Instagram and LinkedIn.
