With the housing market on the rise, renting out basements or creating Airbnbs is continuing to gain popularity. With an accessory dwelling unit (ADU) you can achieve these goals, all you need is extra space on your property! An ADU can be used as an Airbnb, rental, home office, etc.
The sky’s the limit.
Questions like “Do modular homes hold their value?” and “How much value does an ADU add?” are some of the top deciding factors for people looking to invest in an ADU, Modal has compiled a list of reasons to add one in 2022.
#1. Increase Your Income
With the ever-growing popularity of companies like Airbnb and Vrbo, countless individuals have started renting out their extra space to increase their income. The greatest challenge with creating Airbnb or Vrbo listings is finding room on your property for them. With an ADU, this challenge becomes much easier to solve. Instead of clearing out old storage rooms or remodeling the basement, you can purchase an extra building on your property to rent out (with minimal effort on your part!).
Airbnb hosts make an average of $924 a month in extra income (that’s $11,088 yearly!). This number could be even higher once you consider factors like where you live, how large the space is, and how long you rent the space out for. The income made from hosting or renting out property can increase substantially with these factors and increase that extra monthly income.
#2. Utilize Your Space
Spacious backyards are pretty, but they don’t serve many purposes. With the increasing prices of rentals and Airbnbs, turning that extra space into a dwelling can make a huge difference on your income and property value. With ADUs, you can still maintain a beautiful backyard while investing in a compact building to rent out or host on Airbnb.
Maintaining a beautiful backyard with an added dwelling is one of the best ways to use your extra property space and increase income and property value. You can save on landscaping costs while earning additional income from renters and guests in the unit. ADUs are one of the best investments you can make for your property and are worthy of serious consideration for property improvement projects in 2022.
Detached ADUs require an investment to begin, but with companies like Modal that plan out and prepare every aspect of the process, it is an investment well worth the initial price. The continual income you’ll make from renting out the property not only invests in itself but also greatly increases your property value. Some ADU projects can even add double to the property value compared to building costs – almost an instant return on investment. With 2022 underway, adding an ADU to your property is one of the best investments you could make. Check out Modal now to see if your property qualifies!