Pros and Cons of Accessory Dwelling Units

Pros and Cons of Accessory Dwelling Units

Accessory Dwelling Unit is an individual single housing area on any residential property. It may be attached or detached from the primary house. These tiny units can only be constructed on your property if you get a permit from the relevant government department and follow all rules and regulations religiously.

This housing scheme is gaining popularity in various countries as they are an affordable option for tenants, a source of revenue for owners, they are moderately priced if you want to rent, they add a great value to your property and lastly, they are a fine addition to the community.

These houses are built behind or just beside your primary house, facing the lane and they can hold up to 4 people in them easily. Before investing in building an Accessory Dwelling Unit, you should know the pros and cons of building them and then decide.

Pros of Accessory Dwelling Units

  • If you have some elderly people living at your house, like your grandparents or your children who are above 18 and you want them to live separately, then these units are best for them as they would be under your constant supervision but on their own as well.
  • You can always accommodate guests which are visiting you for a longer span of time like a couple of months.
  • You can rent these out to tourists, travelers, students who are looking for hostels, or working people looking for housing options.
  • A great choice to build a home studio, your small office, a mini gym or a playing area for your kids.
  • Can generate a minimum of 7500$ per month by renting these out.
  • If your ADU is spacious then you may get some social benefits from it like you can bring your best friend or partners to live nearby you and discuss all the genius ideas with them right away.
  • The interiors of these houses can be unique and can be used for any purpose you can think you.
  • Who would not love an additional space created in the territory and comfort of your own house?

Cons of Accessory Dwelling Units

  • Sometimes the homeowners of neighbors feel that their privacy is being invaded if you rent out the carriage house.
  • Adding an accessory dwelling unit to your property is costly. It may cost a minimum of $40,000 upfront to build one. The interior decorations and setting are entirely a different story.
  • A permit is required to build an ADU, which is a complicated procedure and may take a few months time.
  • You can not sell the Accessory Dwelling Unit separately. There are rules that indicate that the dwelling unit has got to be the owner’s own property.
  • By building an ADU, you would have to be liable to give more property tax. Our annual property tax would increase significantly.
  • Adding an ADU to your property would mean an increase in the money you take out for maintenance. Even if you rent it out, it would be your responsibility to keep it in terrific condition.
  • In case you rent it, you would have to be extra careful regarding your own, your family’s and your thing’s security.

Hopefully these advantages and disadvantages of building a Laneway house would help you with your final decision.


Accessory Dwelling Units or the Laneway houses are the new addition to the communities and societies which are looking for ways to progress. In the long run, there are per year, thousands of families opt for this living style. Mostly if you cover up some minimal cons, they are a great livable housing option. Apart from being modern, they are sustainable and offer additional space and monetary help to the owners.