An accessory dwelling unit (ADU) is simply a second small dwelling located on the same grounds as your regular single-family home. An ADU can be in the form of a small house, backyard retreat, or even a home office. ADU’s are oftentimes called granny flats, in-law units, tiny houses, or secondary dwelling units. In addition, many multi-family attached properties can add two detached ADU’s per property. ADU’s are appealing because they cost less than other forms of housing and make use of existing land.

Pictured: Perpetual Homes ADU - The Piedmont Elevation

People build ADU’s for many reasons but the most common one is to provide housing for multi-generation family members or for gaining rental income. In fact, Alamo ADU’s command approximately $3,600 per month. That is a 15% return on investment!

The cost of housing has increased so much that young families and aging parents are finding it difficult to be able to afford to live in this area. For aging parents ADU’s allow for people to age in place or form multi-generational households to ease caregiving responsibilities and cost.

ADU’s can be used as an incredible source of rental income. Some people rent out the ADU or even decide to downsize and live in the ADU while renting out their primary dwelling.

• No minimum lot size required.

• A setback of only four feet which opens up a vast number of properties to ADU development in their backyards.

• Homeowners can no longer prohibit ADU’s.

The presence of an ADU can enhance the attractiveness of a house on the market, typically increasing the value of the property. The ADU units can be fully equipped with a bathroom, kitchen, heating and air conditioning, as well as washer and dryer making them fully functioning living spaces. Quite simply an ADU can be the perfect solution for housing extended family, for gaining monthly rental income or for allowing people to simplify their lives and still live in a neighborhood setting.