All About ADUs

I recently participated in a fantastic training on Accessory Dwelling Units (ADUs).  Mike Robbins, the attorney running the class referred to ADUs now being allowed by right as "the biggest change in real estate in (his) whole career."  And he's no spring chicken.

Simply put, a new law removes the need for special permits or zoning variances for ADUs, making it easier for homeowners to build them.  Previous restrictions - such as requiring owner occupancy or a familiar relationship between occupancy - are no longer allowed.

So, perhaps you're looking to offset your mortgage in today's high-rate market...the solution might be right in your backyard – literally.  ADUs may very well become a smart strategy for homeowners looking to maximize property value and generate income.

But hey, what exactly is an ADU, after all?  Think beyond the traditional in-law apartment.  Modern ADUs include converted garages, basement apartments, backyard cottages, attic transformations, and above-garage apartments.  They make sense due to rental income potential (average ADU rentals command $2,000-3,000/month), a boost in property value (adds functional square footage), and flexibility for families (e.g. multi-generational living options).  However, it's important to know local regulations (Boston's ADU Pilot Program, Cambridge's updated zoning for family units, Somerville's overlay district allowances, parking requirements by municipality, required permits and inspections).  And if you're planning on creating an ADU, make sure to work with an experienced contractor familiar with the requirements for your specific community.

In a market where housing costs continue to climb, ADUs offer a creative solution for homeowners to generate income while providing much-needed housing inventory in Greater Boston.  Converting unused space into an ADU typically costs between $20,000-150,000, depending on scope. With Greater Boston's robust rental market, many homeowners could see ROI within 2-5 years.

Ready to explore whether an ADU makes sense for your property? Let's connect to discuss your options and run the numbers for your specific situation!