ADUs as Rental Properties
Many people wait to build an ADU on their property when it’s needed most – as a home for parents or grandparents, or for college graduates returning home. But an ADU is also an excellent investment as a rental property, and a source of additional income.
Even if you don’t need an ADU right now, adding one will increase your property value. Plus, ADUs can bring as much as a 15x return on investment over a 30-year period.
For an ADU that costs $100,000, that can add up to $1.5 million in revenue.
Please note that while ADUs can be used as rental properties, they cannot be used as short-term rentals, such as those offered through companies like Airbnb.