In recent years, the popularity of individual accessory dwelling units (ADUs) has skyrocketed as the affordable housing shortage has escalated. ADUs, often furnished and with utilities included, offer convenience and are becoming widespread across the U.S.
Listing your ADU unit on PadSplit can be more lucrative than other investment strategies if you want to boost your rental income.
What is an ADU home?
Accessory dwelling units (ADUs) are secondary housing units on the same property as a main residence. They’re available in various forms, including converted garages, basement apartments, standalone backyard cottages, or additions to the main house.
ADUs offer flexible living arrangements, affordable housing options, and rental income opportunities for homeowners. Their popularity is driven by increasing housing demands and urban density challenges, allowing them to be rented in most locations quickly.
Typically measuring between 450 and 1,000 square feet, ADUs are perfect for the one- and two-bedroom homes favored by today’s smaller, childless households, which comprise nearly two-thirds of all U.S. households.
Why ADUs are a smart investment for more rental income
When considering adding a new unit, there are two main options: accessory dwelling units (ADUs) and detached accessory dwelling units (DADUs). DADUs are standalone structures separate from the main house, whereas ADUs are attached, such as converted garages, basements, or additions.
Choosing between an ADU and a DADU depends on your goals and project scope. If you prefer not to undertake a complex construction project, remodeling existing space for an ADU is an excellent option.
6 benefits of ADUs
ADUs offer a long list of benefits, making them a more attractive real estate investment:
1. Generate more ADU rental income:
ADUs can provide rental income, helping homeowners cover mortgage payments or other expenses. This can be especially beneficial for individuals who are currently on fixed incomes.
2. Cost efficiency:
Building an ADU unit is cost-effective because the owner already owns the land. The cost is only for the new structure.
3. Versatile housing:
ADUs are versatile because they accommodate people of all ages and adapt to changing housing needs. They suit different household types, life stages, employment situations, and income levels.
4. Entry-level housing:
ADUs offer young people affordable entry-level housing choices.
6. Downsizing option:
Empty nesters and others can move into a smaller space while renting out their larger house or letting an adult child and their family live in it.
Environmental & community benefits
ADUs are not just beneficial for homeowners; they also have positive environmental and community impacts:
- Resource Efficiency: ADUs require fewer resources to build and maintain than full-sized homes.
- Energy Savings: ADUs use significantly less energy for heating and cooling, with internal ADUs having the lowest building and operating costs.
- Minimal Visual Impact: ADUs provide a way to incorporate smaller, affordable homes in established neighborhoods without significant visual impact or contributing to urban sprawl.
- Community Support: ADUs offer a more gradual and dispersed method of adding homes to a neighborhood compared to multistory apartment buildings, often making them more acceptable to the community.
Listing your ADU on PadSplit
PadSplit is a platform designed to help homeowners maximize the revenue potential of their ADUs by offering flexible, affordable housing options. Here’s why listing your ADU on PadSplit is a smart move:
- Revenue Optimization: By listing your ADU on PadSplit, you can ensure consistent occupancy and steady rental income.
- Flexibility: PadSplit allows residents to stay weekly, catering to the needs of a diverse tenant base. Members have an average tenure of 8.4 months.
- Community Contribution: By providing affordable housing through PadSplit, you contribute to addressing housing shortages and supporting your local community.
Start earning more rental income today
Converting existing space into an ADU unit and listing it on PadSplit can significantly boost your ADU rental income while offering numerous benefits to both you and your community. With their growing popularity, cost efficiency, and environmental advantages, ADUs are a smart investment. PadSplit provides a platform to maximize these benefits, making it easier than ever to turn your ADU into a consistent income source.
Ready to get started? List your ADU on PadSplit.com today and start reaping the rewards of this smart investment!
