An ADU (Accessory Dwelling Unit) or JADU (Junior Accessory Dwelling Unit) used to be uncommon. In this article ADU means ADU and/or JADU. With home/rental prices rising and people preferring their own space to roommates; HGTV and Tiny House Nation influences have expanded our thinking about adding one, or renting an ADU or JADU. In fact, not long ago, it would be typical for folks to ask for a property with an ADU for elderly parents or grandparents or home office. Lately, we’ve seen 30 and 40 somethings buying their first home with an ADU for a younger sibling, best friend or relative to live in. They see the benefits: 1- the ADU dweller can help qualify (depending on your lender) for the loan, and/or the rent helps with the mortgage payments. 2- it reduces the uncertainty, for renters, as landlord circumstances dictate their rent or when they have to move. It seems our expanded thinking has created flexibility for long term life decisions about how we live in our home and/or our needs now and later.
A UC Berkeley study found properties in the Bay Area with permitted ADU’s sold for an average of 25-35% more than those without an ADU. NAR (National Association of Realtors) survey found 60% of buyers would pay more for a home with an ADU. Studies show garage conversions have the best value to cost ratio because there is an existing structure when the City may have other lot restrictions. Factors that determine value of the ADU would be whether permitted or unpermitted; quality of construction; separated utilities; rental income history; size and layout; architectural compatibility with the main home and neighborhood.
As with anything, most Cities in CoCo County have FREE ADU plans already approved for an ADU. The city can tell you what is possible on your lot. My guess is that in years to come there will be more sales with ADU or JADU as a factor than homes without them. For those who work from home, home school, have live-in child care or a nanny, have parents, friends or relatives living with them, an ADU or JADU giving them private spaces can be a huge benefit and cost savings.
