ADU and DADU: Are They Worth the Investment?

In 2019, Seattle revised its policies on accessory dwelling units (ADUs) and detached accessory dwelling units (DADUs). The changes have created massive opportunities for real estate owners and investors looking to generate additional income.

Seattle real estate expert Blue Pacific Real Estate discusses these recent developments and shares tips on how you can maximize your ADU or DADU dwellings.

But first, what are ADUs and DADUs?

ADU vs. DADU: What’s the Difference?

ADUs are compact living spaces located within an existing single-family home. They go by many names: in-law or mother-in-law unit, carriage house, granny flat, and secondary dwelling unit are some examples. These typically have their own kitchen, living space, bathroom, and separate entrance.

DADUs are very similar, except they are not attached to the main property. In Seattle, the maximum ADU and DADU size is 1,000 square feet for single-family zones and 650 square feet for low-rise zones.

Seattle’s Revised ADU and DADU Legislation

The City of Seattle’s revised guidelines on ADU and DADU properties highlight the following changes:

  1. Previously, homeowners were required to live on the property to rent out the ADU. The new legislation abolishes this rule, enabling them to convert the entire property into a rental unit.
  2. Off-street parking is no longer a requirement.
  3. Two ADUs can be constructed on a single lot instead of just one.
  4. The maximum ADU size is increased from 800 square feet to 1,000.

Why You Should Invest in ADUs or DADUs

ADUs and DADUs provide the following benefits:

Increases Your Property’s Resale Value

If you’re not having much luck selling your property, adding an ADU or DADU attracts a much different market. Right off the bat, these additions boost your home’s value by about 20-30%. More importantly, you can negotiate a higher price considering that potential buyers can capitalize on the property by converting it into a rental unit.

Provides an Additional Income Stream

Accessory dwellings are especially popular because they give homeowners an additional source of income. They can become landlords without needing to buy a different property.

Likewise, if you live near a tourist destination, you can enroll your ADU or DADU in a service such as Airbnb. The income from short-term rentals can help with covering mortgage expenses. Just remember to check the laws and regulations in your area, as some locations prohibit this type of rental.

Affordable Housing Opportunities for Senior Family Members

Assisted living facilities cost over $7,000 per month. On the other hand, building an ADU is only 10-20% of that amount. Beyond being affordable, these dwellings enable seniors to maintain an independent lifestyle while staying close to their loved ones. Plus, you can easily monitor them and offer assistance should they need it.

Doubles as a Work-from-Home Space

The versatility of ADUs allows homeowners to transform them into the perfect work-from-home space. Whether you plan to use your ADU as a workshop, an art studio, or a home office, having a separate space helps promote a healthy work-life balance. Also, it can double as a receiving area for guests or an exercise room.

Make the Most Out of Your ADU Investment

Blue Pacific Real Estate has extensive experience in ADU dwellings in the Seattle area. If you’re looking to invest in real estate, we’ll help you find properties suited for ADU additions. If you’re selling, our team will assist in the valuation of your property, including the ADU and DADU.

Blue Pacific Real Estate helps you secure the best prices for your real estate deals. Entrust the buying or selling of your property to industry experts. Call us at (206) 582-7812 now for a home valuation or listing consultation.

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