Accessory Dwelling Unit 101: Post 3
In the third post of our ADU 101 series, we will be discussing the possibilities of an ADU and why you would want to construct one. The two previous posts discussed what ADU’s are and the different types of ADU’s you can build. In case you missed them, you can find them HERE.
What is the big deal about ADU’s anyway? Get cozy and get ready to jot a few things down…
Most municipalities have restrictions about the number of separate buildings allowed on a parcel of land that can be occupied as a residence. Typically, a person that owns land zoned for single family or two-family residential structures is limited to 1 primary structure (their house) and 2 secondary or accessory structures (a garage and/or shed). Creating an ADU enables one of those accessory structures to be a residence, opening several possibilities for homeowners. Including a loophole that allows a landowner to have 3 individual dwelling units on a property only zoned for a maximum of 2. We always enjoy a good loophole!
So, what are some of the ways to utilize an ADU?
The first way and the most common way ADU’s have been referenced for decades as the “granny flat” or “in-law suite.” This means creating a separate living space for a relative to reside within the limits of your property because no one wants your mother-in-law who snores interrupting your pleasant night sleep. It’s an attractive option for those that wish to have their own space and / or remain in their homes as they age, but are restricted by finances or other needs. And we promise we won’t give your son who never wants to move out any ideas about turning your basement into his ADU bro-home. Or if you have a lot of out of town guests, your ADU can be used for visitors which allows them to have their own private space away from the happenings of your household. This is how Jack #1 currently utilizes the ADU he built in his basement and with little ones in the picture, it can be a life saver for everyone.
The other attractive option is to use your ADU as a rental unit. Typically, you have the option to license the unit as a long-term rental - greater than 30 days - such as an apartment or a short-term rental - less than 30 days - like vacation rental/ VRBO. The type of license you are eligible for will be determined by the laws of your local municipality. The City of Duluth tends to be more strict about vacation rentals than they are about long term rentals and only allows a certain number in the entire City. Which is why it’s important to check with your local municipality before planning on one or the other. No matter which rental option you choose, this type of ADU can add significant value to your property and be a source of additional income.
Jack #1 can attest to the benefits of an ADU and so can his guests! But the possibility doesn’t end there, it is also transitional. The original plan was to use it as a long-term rental, but has enjoyed the extra space for guests as well as still having the option to rent it out in the future.
Incase you’re having trouble remembering all of the benefits - because there are quite a few - here’s a quick reference list:
1. Can increase the value of your property.
2. Possibility to increase your earning potential.
3. A way to expand the building options of your property
4. Great option to welcome those guests that you love but would prefer they had their own space to enjoy.
Now you know what an ADU is, the different design options for an ADU, and the possibilities of an ADU. Next up, the final piece of the puzzle for building an ADU is to understand what the City zoning code and International Building Code requires and what that means to you.
If you can’t wait that long or have another architecture question, reach out to us at info@doublejackdesign.com