ADU / DADU FAQ

Lots of place, but there are also a lot of places in which they are limited. Some HOAs, environmentally-critical areas, some areas served by septic, etc, are locations that may be limited. If you currently own a property and are thinking about adding an ADU or DADU, I can see what I can ascertain. Just give me a call or send an email.

No! Actually, there are a number of lenders who have programs that might be a good fit depending on if you are adding the structure to your primary residence or investment property. You might be able to take out a second mortgage or a HELOC without affecting your primary mortgage (important if you have a low interest rate that you don’t want to trade in.

If you are already thinking about adding another entrance or cooking facilities, I would suggest talking to your local planning department. The requirements for upgrading to an ADU may not be more expensive than what you are already planning AND it might increase the value for the next buyer.

Great question! If you have an attached garage that you are not using, developing an ADU may be a great way to bring in extra income. Just for rough numbers, let’s say your garage can be converted to the tune of $100,000. If you can bring in $1500 a month for that space, you could earn back those funds in about five years (assuming you paid for the improvement outright). And then remember, you will have an asset that should appreciate at a higher rate.

Maybe! The first step would be to make sure it is actually on your property and has the proper setbacks for code in your area.

Again, maybe! There are three big issues for basement conversion – water intrusion, ceiling height, and forms of egress. However, if you have these covered, a basement conversion may be worth taking a look at.

Yes! But choosing a property in the right area is important. Critical areas, those in HOAs, or those on a septic may not be viable candidates. It is also important to understand how setbacks, height, etc, can affect the plans. Other issues include utilities, how the primary residence is put together, how it sits on the property, etc. Although I am putting up a number of warnings here, I am actually really excited about helping neighborhoods become denser in a way that is natural to the way they are already laid out. Planning for ADUs or DADUs takes some creativity and I would love to help!

Yes! If your property is indeed a good candidate to build a couple of DADUs (which can be determined via a site analysis with The ADU Crew, there are two ways to do that depending on what you are looking for:

  1. Stick-built DADU – Using this method, you can work with an architect and builder (or see TThe ADU Crew webpage for our pre-engineered smart ADU floorplan process and work with our builders) to build the DADU in your yard from the ground up.
  2. Modular DADU – The ADU Crew works with a number of DADU modular specialists who can not only make quick work of your DADU build, but they can also save money by keeping costs as expected. These are not the manufactured homes of yesteryear. Modular homes are big on style and green building techniques.

This is a very interesting transition period in which we are going from ADUs only being allowed on a small number of properties to being allowed in most urban areas. Increasing the income possibilities for a property will increase the value in the eyes of many buyers as well as the lender. Just how much it will increase depends on a number of factors – just like determining the market value of a property. Potential income, proven income, improvement value, land value, and more are all items that need to be reviewed when analyzing a property with an ADU / DADU.

Many people are in your same position and this is something I am in communication with your state and local representatives about. I am trying to get additional state resources available for “mom and pop” landlords who have built ADUs on their property.
In the meantime, there are a few options to consider:

  • Renting on your own – The Rental Housing Association of Washington (RHAWA.org) is a great resource. They hold classes, provide forms, provide tenant vetting options, and even are available for advice if you run into a sticky situation. I am a member of RHAWA and feel they are a must-have resource for managing your own rental.
  • Property Management Company – Another option is to look at hiring a property management company. Some offer just vetting and transition services while others will manage all aspects of your rental. However, if you live on site, know this won’t likely help you avoid all interaction with your tenant. Property management may run you about 10% of your income per month.