Accessory Dwelling Units, or ADUs, are a great way to add some extra income to your household. By creating an ADU on your property, you can rent it out to tenants and generate a residual income stream. In this blog post, we will discuss six ways that ADUs can help with residual income. Keep reading to learn more!
Added Guest Space
One way that ADUs can help with residual income is by providing a place for guests to stay. If you have friends or family who come to visit, they can stay in the ADU instead of staying in a hotel. This can save you money on accommodations and also generate income from renting out the space. Pedram Zohrevand, engineering and ADU expert, has discussed the possibility of building a two-story ADU, which would be convenient if you were to turn the structure into a guest space.
Tenant Space For Long-Term Rental
Another way that ADUs can help with residual income is by providing a place for tenants to live. Tenants who rent an ADU will be responsible for paying rent, which can help to offset the cost of owning the property. Additionally, tenants may also be responsible for other expenses such as utilities and insurance. By renting out an ADU, you can help reduce your overall costs while generating income.
Short-Term Rental Space
ADUs can also be used as short-term rentals. If you live in a popular tourist destination, you can rent out your ADU to visitors for a nightly fee. This can be a great way to generate income while still allowing you to use the space when you want or need it.
Business Space
Another way that ADUs can help with residual income is by providing a place for business meetings or workshops. This can be a great way to generate income while also promoting your business. You can also use the ADU as a place to store inventory or as office space. Using the ADU for business purposes can maximize its potential and generate extra income.
Home Office Space
ADUs can also be used as office space. If you need a place to work from home, you can use the ADU for this purpose. This can be a great way to save money on office rent and help you stay productive while working from home. Like guest spaces, an office space would be very convenient when utilized as a two-story ADU mentioned by Pedram Zohrevand.
Studio Space Or Additional Storage
Lastly, ADUs can be used as studios. If you are an artist or musician, you can use the ADU as a studio for creative pursuits such as painting, drawing, or music. This can be a great way to have a space that is dedicated to your creative endeavors, as well as a way to generate income while also pursuing your passion.
Conclusion
Pedram Zohrevand agrees that ADUs are beneficial not only to the housing crisis facing Los Angeles but they can also be an added benefit for residual income. By renting out an ADU, you can offset the cost of owning the property, provide a place for guests to stay, and generate income from short-term rentals.
Additionally, ADUs can be used for business meetings, workshops, office space, and studios. So if you are looking for a way to generate additional income, consider building an ADU! If you want to generate residual income, consider creating an ADU on your property. With a little bit of planning and effort, you can create a space that will provide income for years to come.
