Way before 2020, accessory dwelling units (ADU) were only permitted on single-family properties. This meant that multi-family dwellings did not enjoy the boom of ADU. In recent years, times have changed and so have a lot of things. Opportunities for multi-family building structures in ADU have already taken off. It’s possible to add many ADUs to your multi-family dwelling if you own one. You can either develop a family compound or earn more income. There are many changes to the state regulations on multi-family ADUs. A lot of people are not aware. It is the job of any top construction firm to know these things. This is why you need professionals like S3DA design firm experts. 


Having an extra dwelling unit on your multi-family property helps. It allows you to maximize your earnings. This is done without needing to go through a long construction procedure. Or even purchasing a new property. 


Multi-family property ADU is a very smart way to diversify investments. It also increases your income at a fast growth rate. It is necessary to do your research and use our tips to help you stay away from unwanted issues. 


What Makes it a Multi-Family Building Structure


The zoning or the property doesn’t make a building regarded as a multi-family building. It is the structure of it. This is something a lot of people get confused about. 


To classify a building as multi-family, the structure should consist of at least two residential dwellings. These dwellings should be attached to each other. When they are not attached but on the same lot, they are not called multi-family dwellings. 


Apartment buildings are often referred to as multi-family. A duplex, triplex, or fourplex with attached units as also a multi-family dwelling.


What is an ADU?


ADU stands for Accessory Dwelling Unit. It is a small home built on the same property as a larger one. It often goes by different names in various regions. You can hear terms like ‘garage conversion’ or ‘carriage house’ 


ADUs can be either attached to or detached from the main house. It can be converted from an old structure or be a new construction. In some cases, it can be large enough to stand on its own or be as small as a single room. 


The main thing with them is they provide that extra income you need. Renting out an ADU can help take care of other expenses. Like property taxes, mortgages, and others. 


ADUs can provide a place where families can live close to one another. Imagine having the ability to assist your adult children and also give them the privacy they need. Multi-family ADUs can be a great downsizing option. You wouldn’t have to leave your neighborhood or give up your lot. 


How to Maximize ADUs


There are a few things you need to be aware of. That is before you begin designing the perfect multi-family property ADU. That is if you’re ready to take advantage of the new permitting process for building an ADU. 


There are ways you can maximize return on investment with your multifamily ADU. Below are some tips on how you can do that;


  • Rent it out:


This option is very self-explanatory. Renting it out to tenants is a sure way to increase the return on investment (ROI). Income from rent can always supplement your regular income. It provides a means for you to make money while sleeping. This is because it comes as a passive income stream. 


For sure there might be other factors to consider that might affect your return on investment. Factors like existing mortgage payments for instance. Regardless, renting out your new ADU is a way to cause a significant rise in your return on investment. It can also give you a much-needed break on property taxes. 


  • Create a Home Office:


Transforming your new space to an office is another way to increase your ROI with a multi-family ADU. The Covid pandemic created a shift that increased the number of people working from home. Some employees are being offered incentives to build home offices. 


If you run your own business, it’s possible your home office helps you get tax breaks. That space dedicated to work can help create an income tax deduction when the time comes. Consult S3DA design firm experts for more on how and when this deduction takes place. 


  • Adhere to Guidelines:


If you don’t wish to rent it out or turn it into an office for personal reasons, it still doesn’t mean you’ve lost. 

There are ways you can maximize multi-family property ADU. You can maximize it without using the above options. All you need to do is adhere to the simple laid-down guidelines. This way, you can still maximize your return on investment. 


Some guidelines are;


  • The land meets with the road either by an easement or a driveway
  • An extra parking space for the ADU resident should be available. 
  • A single-family dwelling already exists on the property and the owner lives on the land as well.
  • The lot is in a residential district that permits ADUs and should be at least 3,500 square feet. 
  • Must adhere to the floor space limitations for new ADUs. 


Final Thought:


Multi-family property ADU is easy to make investments with. You are always sure you will get a return on investment with your ADU. All you need to do is stick to the guidelines and do the right things. 


Make your research and seek expert advice where necessary. Constructing multi-family ADUs is not a DIY job so don’t treat it as one. 


If you need experts to help you out, contact us at S3DA design firm. As always, our experts are ready and available to give you the best.