The ADU Guide Logo
additional dwelling unit ADU Woodland Hills, CA. Bedroom.

7 Ways to Make Extra Income with an Accessory Dwelling Unit

An accessory dwelling unit, also known as an ADU, is a home that’s a built-in addition to an existing one. An ADU could be anything from a garage converted into living space to an extra bedroom tucked into the basement—basically, it’s any type of living area that isn’t your main house. The idea behind ADUs is that you can create more space and therefore more income on your property while also preserving it so that it won’t become overdeveloped and sprawl out of control. Here are seven ways to make extra income with an accessory dwelling unit.


#1: Short-Term Rentals: The popularity of short-term rentals has grown dramatically over recent years. If you build an ADU, you could use it as a way to earn extra income by renting it out short-term—either through a vacation rental site like Airbnb or HomeAway or by renting directly to individual guests who want a more personalized experience than staying at a hotel provides. 


#2: Long-Term Rental: If you’d rather focus on long-term renters, then using your ADU as a rental property may be right for you. Although there are some legal hurdles to overcome when converting an existing structure into a long-term rental (especially if it was previously used as anything other than residential), doing so can provide steady income over time. 


#3: House Sitter Service: If you’re going to be away from home for an extended period of time, offering your ADU up as a house sitter service can give you peace of mind while also providing another source of income. Simply put an ad online and let people know you’ll be available to watch their homes during vacations, business trips, etc. 


#4: Room Rental: Similar to a house-sitting service, renting out rooms in your ADU can help bring in additional income. Depending on how many rooms you have available, you could make enough money each month to cover mortgage payments or even pay off student loans faster! 


#5: Bed & Breakfast: Another way to monetize your ADU is by turning it into a bed & breakfast. While keeping things simple will allow you to keep costs down, adding amenities such as breakfast and Wi-Fi can attract customers looking for unique experiences while traveling.


 #6: AirBnB Alternative: An option for making money with an ADU is creating something similar to AirBnB…but better! Instead of just renting out bedrooms in your home, create a network of properties within driving distance from one another that travelers can stay at for longer periods of time. Not only does this method help travelers save money on lodging fees, but it also gives them access to private communities where they can meet others who share their interests.


 #7: Resell Your Property: If you decide not to continue living in your ADU after construction is complete, you can always sell it! If you’ve done a good job maintaining the property, you should be able to recoup most of your investment in it and more! However, before you sell it, make sure to check local zoning laws first. In some areas, ADUs aren’t allowed as standalone structures, so you may need to convert it back into a garage or storage area before selling.

Considering making an extra $20,000-$35,000 a year by investing in an ADU?
Check if you property is eligible for an accessory dwelling unit using The ADU Guide’s completely free Property Report!

Discover New Possibilities for Your Property with an ADU!

Input your address and instantly get a complimentary report to find out if you qualify.


Leave a Reply

Your email address will not be published. Required fields are marked *

Social Media

Most Popular

Get The Latest Updates

Subscribe to Our Newsletter

No spam, notifications only about new products, updates.


On Key

Related Posts