Skip to main content

THE ROOTS

ADU

All Terms
ProfessionalProperty Types & StylesBuyingSellingInvesting

Definition

An ADU is basically a second home on your property—a smaller, independent unit separate from your main house. Think of it as a blank canvas for extra rental income, a guest space, or housing for aging family members, all on the same land. It's becoming a smart way to maximize what your property can do for you.

Not sure where this fits?

Answer a few questions and we’ll open the path that fits, at the right step.

Find my path

About this term

ADUs offer property owners opportunities for rental income, housing family members, or creating guest accommodations. Common ADU types include granny flats, guest houses, and converted garage apartments. Many jurisdictions have relaxed ADU restrictions to address housing shortages. ADUs can significantly increase property value through rental income or increased flexibility for multigenerational living.

Pro Tip

Zoning rules for ADUs vary wildly by location. Before buying a property with ADU potential, verify what your local government actually allows.

Example

A primary residence with a detached ADU generates $1,500 monthly rental income while remaining on the same property.

Share this term

Help others learn what “ADU” means

Share