Will Adding an Accessory Dwelling Unit Pay Off?

Accessory dwelling units are known by many names: in-law suites, guest houses, backyard cottages, or basement or garage conversions, among others. What all ADUs have in common is that they’re a separate living space typically added to a single-family residential lot, and they’re having a moment.

Constructing an ADU could increase your property value while providing rental income or extra living space for a family member. Then again, adding an ADU could be an expensive hassle you live to regret.

If you’re thinking about an ADU, here’s what to consider before you commit.

Why ADUs are increasingly popular

In recent years, several cities and some states — including California, Oregon and New Hampshire — have passed laws making it easier for homeowners to create ADUs, in part to address housing shortages and rising costs that have led to an affordability crisis in many communities. ADUs are seen as a relatively inexpensive way to increase the supply of more affordable housing…

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This article was written by Liz Weston, CFP® and originally published on www.nerdwallet.com