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Do you have a lot of extra space in your backyard that isn’t being used effectively? Have you ever thought about using the space for an ADU, or accessory dwelling unit? That is just a fancy legal term for a secondary living space on the same property lot. Building an ADU in your backyard can be beneficial in a lot of ways. Here are a few reasons why you should build an ADU in your backyard.

Grow Your Space

First of all, installing an ADU in your backyard can help you to grow your space. You can create an additional dwelling space that will be useful for you over the years. This is particularly useful if you have a family member or friend that needs a long-term space to stay, but there isn’t room in your house for them. This could even function as a study space if you have college kids that need a quiet place to stay. Building an accessory dwelling unit can help you to provide a place to stay that has sufficient privacy.

Make Rental Income

Another benefit of building an ADU in your backyard is that it can be used as a rental property. Since the building will be built on the same land and property as your primary living space, you can’t sell it to a different owner. However, you can rent the space to bring in some helpful secondary income to your family. Just make sure that you take enough time to find the right renter, since they’ll be so close to your home. It’s important to screen your tenants so you minimize mortgage issues.

Increase Your Property Value

If you think that you’ll be refinancing your home or trying to dip into your home equity at some point in the future, building an ADU could be very beneficial for you. Having an additional dwelling space can add additional value to your property. It will be an investment of money up front as you construct the ADU, but that investment will pay off as it increases the value of your home.

So, if you have unused space in your backyard that could be functioning with a better purpose, remember the suggestions made in this article. Having an ADU on your property can help to grow your living space, make a rental income, and increase your property value. Building an ADU could be a huge financial benefit for you in the future.

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