An Additional Dwelling Unit (ADU), also known as a granny flat, backyard cottage, or casita, is a self-contained living space on the same lot as a single-family home. ADUs have become increasingly popular as a way to provide affordable housing, generate rental income, and increase property value. If you own an ADU or are thinking about building one, you might be wondering how you can maximize your income potential. In this blog post, we’ll share five tips to help you increase ADU income.
Tip #1: Know Your Rental Value
Before you set your rental price, research the rental market in your area. Check websites like Zillow or Craigslist to see what other ADUs are renting for in your area. You can also consult with a local real estate agent or property management company for their input. Keep in mind that your rental value will depend on the size, location, and amenities of your ADU, as well as the current rental market.
Tip #2: Offer Furnished Rentals
If your ADU is furnished, you can charge more for rent. Many renters prefer furnished apartments because they don’t have to worry about moving their own furniture or buying new furniture. If you don’t want to invest in furniture, you can still provide basic necessities like a bed, table, and chairs. Offering a furnished rental can make your ADU more attractive to renters and increase your rental income.
Tip #3: Allow Pets
Many renters have pets and are willing to pay extra for pet-friendly rentals. By allowing pets, you can increase your rental income and attract a larger pool of renters. However, it’s important to set restrictions and guidelines for pets to protect your property and ensure the safety of other tenants. For example, you may want to limit the number of pets or require a pet deposit.
Tip #4: Advertise on Multiple Platforms
In today’s digital age, there are many platforms to advertise your rental property. You can list your ADU on websites like Zillow, Craigslist, or Airbnb. You can also create a rental listing on social media platforms like Facebook or Instagram. By advertising on multiple platforms, you can increase your reach and attract more renters.
Tip #5: Provide Extra Services
Providing extra services can make your ADU more attractive to tenants and increase your rental income. For example, you could offer a cleaning or laundry service for an extra fee. You could also provide access to a gym or pool, or offer parking. By providing extra services, you can set your ADU apart from others and increase your rental income.