Wednesday, October 16, 2024
Utah property owners can help the housing shortage and make some money by adding an ADU.
Urban Living
Posted By Babs De Lay on October 16, 2024, 4:00 AM
I'm always surprised at how many buyers and sellers don't know what an accessory dwelling unit is—or ADU—and, on the flip side, surprised at the creativity of those who add them to their properties.
With such a housing crunch in our state, ADUs are a great option to add another dwelling unit to a property, as in a second tiny home on a lot where a home currently stands or an interior unit like a mother-in-law apartment.
An accessory dwelling unit is a permitted use in Salt Lake City, Provo, Ogden, St. George and most major cities in the state. But there are rules you have to follow to add one to your property no matter where you choose to live.
I heard from a wise old veteran that tens of thousands of troops came through Utah each month during WWII on their way to fight in foreign lands, and that often their loved ones might follow them to the state to spend as much time as they could before the soldiers went to war. We had a housing crisis then, as we do now, and my friend said city officials would knock on homeowners' doors to see if there was any way a makeshift bedroom or apartment could be squeezed into the home—regardless whether the basement was dirt or the attic unfinished.
Apart from knocking on doors, nowadays homeowners have seen the advantages of adding ADUs because they can be rented out for added income to help make primary mortgage payments or simply to provide housing for friends, family and/or caregivers.
There are several companies now building "tiny homes" that are no bigger than a shed, which can be dropped by crane into a back yard or delivered in kits that can be erected in a day once a foundation is poured—if it's an exterior unit—or built into your home in a month or two.
There are also ways to attach or add an ADU to an existing property and the state now allows for "interior" ADUs, which would legalize apartments already operating inside homes (aka "mother-in-law" apartments).
According to aduutah.com, standalones can cost between $60,000 and $100,000 to build. And this commercial website, which is owned by a local contractor, can give ideas on how much income an ADU can generate for you (if your city allows them), what the rules might be, financing options and designs, etc.
Etsy has prefab tiny homes starting at $27,000. Dwellito ships prefab homes to Utah, and Stack Homes builds shipping container dwellings you can customize for a home that's 480 to 960 square feet when finished.
If you think you have spare room in your yard or home for an ADU, start with a simple drawing you do yourself and take it to your local city hall. Talk with a planning and zoning person there, show them your idea and they will help educate you about local rules and regulations.
About The Author
Babs De Lay
A full-time broker/owner of Urban Utah Homes and Estates, Babs De Lay serves on the Salt Lake City Historic Landmark Commission. A writer and golfer, you'll find them working as a staff guardian at the Temple at Burning Man each year.
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