Accessory Dwelling Units (ADUs) are popping up all over North America. You might know them as Coach Houses, Laneway Houses, Garden Houses or one of their many other names. With the cost of housing on the rise, the anticipated increased inflation post Covid19 as well as the cost of living becoming more in general, these little dwellings will soon become necessity.
Cities across Canada and the USA have been modifying their zoning requirements to allow for more compact density in traditionally low density neighbourhoods.
If that isn't enough to convince you that ADUs are the next big thing, here are 5 top reasons why you should consider adding an accessory dwelling unit to your property:
Off set your cost of living. This is a HUGE benefit. The cost of living is on the rise and house prices are climbing at an unprecedented rate. Job stability is in question across the country.
Renting out your ADU can significantly decrease your monthly expenses which in turn could allow you to move into more desirable or expensive neighbourhoods or even just allow you the ability to afford to own a home in today's market.
Higher rental income. ADUs are stand alone, above grade structures with large windows, high ceilings, separate utilities and dedicated yard space, they can demand the same rents as you would expect for a single family home. All utilities are separated, including HVAC which means you reduce the ability for cooking smells transfering between units, a common complaint about shared dwellings. You can increase your cashflow substantially by adding an ADU to your current single family rental for minimal (if any) out of pocket expense. Additionally, your ADU will most likely meet or exceed the highly coveted 1% rule. #doubleyourcashflow
Less noise complaints. Since ADUs are private, fully detached, purpose built structures, as a tenant and/or property manager you can worry less about noisy neighbours above or below. Sound transfer is one of the most common complaints from tenants. With zero adjoining indoor spaces you can pretty much eliminate noise issues entirely. When it comes down to it, your ADU might actually be farther away from your primary residence than your current neighbours!
ADUs are great for producing income but there are other benefits that could also suit your family.
They're perfect for "Boomerang kids" which are kids returning from college with low paying jobs and can't afford to live on their own just yet. They make fantastic in-law suites. Grandparents are able to live close to their grandchildren while having a low maintenance, cost effective place to live. ADUs are great options for snowbirds who want to head south for the winter.
Create more "invisible" density. Increasing the number of homes in desirable, walkable neighbourhoods and reducing urban sprawl. Most residential neighbourhoods in cities that allow ADU are suitable with supportive zoning and bylaws already in place.
There have definitely been recurring themes here and they are affordability and privacy. Accessory Dwelling Units are cost effective structures that provide many benefits to families as well as landlords. If you have any questions or want to learn more about how an ADU can increase your cashflow or decrease your monthly expenses, reach out to us. We'd love to share our knowledge about the next big thing in housing in Canada. You can email us here.
Photo Credit: Propel Studio Architecture