Rental Income

Homeowners can generate rental income by renting out their ADU. This rental income can help cover living expenses, pay off debt, or save for travel or retirement.

Increases Home Value

This can be beneficial if you or your heirs sell in the future. The added value can also provide a source of equity to tap into if you need extra funds.

Tax Benefits

Homeowners may be able to deduct a portion of the construction costs on their taxes or qualify for property tax exemptions for certain types of ADUs. It is important to recognize that your ADU will increase your property taxes once it increases the value of your property. However, this increase may be offset by reductions to your income tax due to increased deductions and write-offs of shared expenses with the primary home.. See your tax advisor for specifics.

Aging in Place

By building an ADU, seniors can age in place and avoid the high costs associated with institutional care or assisted living facilities. This can help seniors preserve their savings and assets for other purposes. 



Home Sharing

Seniors or people with disabilities can also use their ADU as a home sharing solution, where they can rent out their space to a younger person in exchange for help with household tasks or companionship. This can provide seniors with additional income and social support.