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Why You Should Build A Rental ADU

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ADU development is commonly done to provide extra income to a family. However, there are a few different ways you can use a rental ADU to your benefit. Let’s take a look at why you should build a rental ADU on your property.

House Hacking

Looking to pay off your house more easily but are not sure the rent you charge for living in an ADU will be enough to cover your monthly mortgage bill? Try house hacking. People house hack by building ADUs and living in them while renting out their main home. This way they can use the rent they gain from renting out their primary home to pay off their mortgage while living in the ADU. Once their mortgage is paid off, they move back into the primary home and start renting out the ADU instead to provide additional income.

Some people stay within their primary home and rent out their ADU to pay off their ADU or their primary home mortgage. However, renting out an ADU to make mortgage payments is more difficult because most ADUs don’t cost as much as your monthly mortgage does. So, they can help pay towards the mortgage but are probably not going to cover all of it.

Long-Term Renting ADUs

If you are looking for more spending money to put towards a vacation, new car, pool, or whatever you would like, you can try renting out your ADU long-term. Many cities prevent you from renting out ADUs short-term through sites like Airbnb, however, this doesn’t mean you can’t rent them out long-term for month-long vacations or a place for someone to live. These sorts of rental opportunities are great for people like traveling nurses.

Affordable Housing Opportunity

If you are someone who cares about your community, renting out your unit can be a way to house a family in need. With the housing crisis continuing to grow, by offering out an ADU to rent at a much cheaper price than most apartments and houses, you are helping keep someone off the streets while making some extra income doing so.

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