Table of Contents
- Introduction
- Real Stories, Real Income: What I’m Seeing Firsthand
- Understanding ADU Lingo: Let Me Break It Down For You
- Utah ADU Rules: What You Need to Know
- The Money Talk: Let’s Get Real About Finances
- A Success Story That Still Excites Me: The 700 E Property
- Why I’m Passionate About ADUs for Utah Homeowners
- My ADU Advice
- Wrapping Up: Wisdom from My Card-Playing Grandpa
- The ADU Effect: Lower Costs for Buyers, Increased Value for Sellers
- Bonus: Quick Guide to Secondary Units
- ADU Resources for Current and Future Utah Homeowners
Introduction
It’s amazing how things change. When I started in real estate, buyers often wondered why homes had second kitchens in their basements, viewing them as unnecessary or odd. Fast forward to today, and it’s a whole different ball game.
Now, I’m watching homeowners add kitchens, convert basements into apartments, and transform garages into living spaces. ADUs (Accessory Dwelling Units) are popping up everywhere, and it’s exciting to see. Buyers are actively looking for homes that offer these additional living spaces, recognizing their potential for rental income, multi-generational living, or flexible use.
Why the shift? Simple – people are getting smart about making their homes work harder for them. They’re turning extra space into an asset, not a liability.
I’ve seen a dramatic change in how homeowners view their spaces. Not too long ago, I had clients eager to remove extra kitchenettes from their basements. Now, those same types of spaces are being transformed into valuable rental units. In fact, I now have buyers specifically looking for homes that have spaces that could easily convert to rentals. It’s a complete reversal in how these additional living areas are perceived and valued.
It’s a complete 180 that I’m seeing all across Utah, and particularly in and around the SLC metro area. This trend spans renovated homes, new construction, and neighborhoods at all price points. From working-class areas like Rose Park and Taylorsville to well-heeled suburbs like Granite and Draper, and even in luxury properties priced over $1 million, the desire for convertible spaces is universal.
Whether it’s a modest bungalow or a sprawling estate, buyers are increasingly looking for homes with the potential for additional living units.
This isn’t just about extra income. It’s about adapting to changing times. With sky-high housing costs, these additional living spaces are becoming lifelines for families. They’re helping young adults save, providing homes for aging parents, and giving homeowners unexpected financial flexibility.
Real Stories, Real Income: What I’m Seeing Firsthand
I’ve been having some eye-opening conversations regarding ADUs lately. Last week, I caught up with three homeowners who’ve added ADUs to their properties. Their experiences really show how these units can impact a family’s finances.
One couple converted their basement, now earning $1,500 monthly from it. Another homeowner transformed a detached garage into a studio, bringing in $2,000 a month. And a family I know added a mother-in-law suite, which is saving them money on elderly care while keeping grandma close.
These additional incomes range from $18,000 to $24,000 annually. It’s interesting to see how this extra money affects different families. For many, it’s not about luxury or savings, but simply helping to pay the bills. This additional income can make a significant difference in managing day-to-day expenses, easing the financial strain on homeowners in our increasingly costly housing market.
Each situation is unique, but it’s clear that ADUs are easing monetary burdens and opening up new financial possibilities for renters and homeowners alike. It’s a trend that’s making a real difference in people’s lives.
Understanding ADU Lingo: Let Me Break It Down For You
In my years in real estate, I’ve heard all sorts of terms thrown around for extra living spaces. ADU, duplex, basement apartment, casita, mother-in-law suite – it can get confusing. But here’s the thing: they all basically mean the same thing. It’s a secondary living space on your property.
An ADU (Accessory Dwelling Unit) is the official term, but don’t get hung up on the jargon. What matters is what these spaces can do for you.
Now, here’s a crucial bit I learned from an on-the-ground experience: permits matter. A lot. You might have a great space, but without the right permits, it’s just a fancy guest room in the eyes of the law. So, whether you call it a granny flat or a backyard cottage, make sure it’s legal. It’ll save you a world of trouble down the line.
Utah ADU Rules: What You Need to Know
Let’s talk rules, because they can make or break your ADU plans.
First off, Airbnb in Salt Lake City? It’s a no-go for most residential areas. I know it’s tempting, but I can’t recommend it. Instead, consider long-term rentals – they’re often more stable anyway.
Now, about duplexes. There are homes that may be in zones where duplexes are permitted. It’s not just about having two units; you need the official okay. We can help you find out the requirements, how to fill out the application, and help you determine feasibility. It’s a bit of work, involving zoning checks, meetings with city development teams, and some paperwork. But in the end? Worth it.
And here’s some good news: many Utah cities are actually encouraging ADUs now. They see it as a way to address housing shortages without drastically changing neighborhoods. Salt Lake City, for instance, has streamlined its ADU approval process.
Remember, rules can vary by city and even by neighborhood. Always check with your local planning department before you start any work. It might seem like a hassle, but it’s way easier than dealing with fines or having to undo work later. I’ve seen it happen, and it’s not pretty.
The Money Talk: Let’s Get Real About Finances
When it comes to ADUs and duplexes, the financial details can get tricky. ADUs and duplexes are zoned differently, which affects financing. In most cases, ADUs are part of an owner-occupied home with a shared utility meter. This often means cheaper loan rates. Duplexes, on the other hand, usually have separate meters and don’t require owner occupancy. But heads up – they often come with higher interest rates.
Here’s an insider tip: look at the meters. Two gas meters? It might be a duplex, even if it’s not advertised as one. This happened with a client recently, and it opened up new possibilities for them.
Remember, cities require licenses for most rental properties. There are some exceptions, like renting to family. It’s always worth checking with your local zoning department.
In my experience, these rules aren’t just red tape. They’re there for safety, parking management, and to keep the peace in neighborhoods. Understanding them can help you make smarter financial decisions about your property.
A Success Story That Still Excites Me: The 700 E Property
Let me tell you about a recent win that still has me grinning. A buyer called me, dead set on finding a duplex. Now, duplexes are rare birds in our market, and the ones you do find are often… well, let’s just say they’ve seen better days.
So I suggested we think outside the box. We stumbled upon this single-family home on 700 E. It was advertised as just that – single-family. But here’s where it gets interesting: it had two units that were being rented out as Airbnbs.
I noticed two gas meters – often a clue that a property might be more than meets the eye. We called the city, and lo and behold, it was actually a permitted duplex! But wait, it gets better.
We asked the city if we could add an ADU on top of the existing garage. They said yes! Of course, we’d need to go through the application process, but suddenly we were looking at the potential for three units.
From a single-family home to a triple income property – now that’s what I call a transformation. This is why I love digging deeper and thinking creatively. Sometimes the best opportunities aren’t obvious at first glance.
Why I’m Passionate About ADUs for Utah Homeowners
It’s important to me that you understand that ADUs aren’t just a passing trend – they’re a big deal for Utah homeowners, and that’s why I talk about them so much. These additional living spaces are transforming our communities and offering new opportunities for homeowners, which is why they’re a frequent topic in my conversations with clients.
First, let’s talk money. I’ve seen ADUs offset mortgages in ways that transform financial lives. One client went from stressed about monthly payments to comfortably saving for retirement. It’s like finding an extra paycheck in your own backyard.
But it’s not all about cash. ADUs create space for family, and those stories warm my heart. I’ve watched grandparents move closer to grandkids, adult children save for their first home, and families stay together during tough times. These units build more than just walls – they strengthen family bonds.
And here’s something that might surprise you: ADUs can seriously boost property values, with a recent NAR study finding that the addition of an ADU can increase a home’s value by as much as 35% compared to similarly appointed non-ADU properties.
What really gets me fired up is how ADUs can solve problems. They’re addressing Utah’s housing shortage, providing affordable options, and allowing homeowners to age in place. It’s a win-win-win situation.
That’s why I’m passionate about ADUs. They’re not just changing houses – they’re changing lives.
My ADU Advice
After years in this business, here’s the nugget of wisdom I always share: check with the city first. It’s tempting to dive in and start building, but trust me, that path can lead to headaches and hefty fines. I’ve seen too many excited homeowners hit roadblocks because they skipped this crucial step.
Understanding what you have is key. Is your basement apartment actually permitted? Can your garage legally become a living space? Knowing the answers can save you time, money, and stress. You wouldn’t want to purchase a property thinking it’s a legal duplex, only to discover it’s actually a single-family home with an unpermitted secondary unit. Talk about a rude awakening!
That’s where I come in. I’m not just here to sell houses – I’m here to guide you through the process of finding a property that suits your needs. My experience in the local real estate market can help you identify homes with ADU potential or existing ADUs that align with your goals.
Remember, every property is unique. What worked for your neighbor might not work for you. But don’t let that discourage you. With the right approach, you might be surprised at what’s possible. Let’s explore your options together and find the best solution for your home and your goals.
Wrapping Up: Wisdom from My Card-Playing Grandpa
My grandpa was quite the card player, and he’d always say, “Just tell me the rules so I can play the game.” You know, that’s stuck with me, especially when it comes to ADUs.
In this world of accessory dwelling units, knowing the rules is half the battle. Each city has its own regulations, but once you understand them, you can really start to play – and win. It’s not about bending rules; it’s about knowing how to work within them to maximize your property’s potential.
Think about it: once you know what’s allowed, you can get creative. Maybe that old garage could become a cozy studio, or that unused attic space could turn into a rental unit. The possibilities are endless, but only if you know the game you’re playing.
So here’s my invitation to you: let’s chat about your unique situation. Every property is different, and so is every homeowner’s goal. Whether you’re looking to boost your income, create space for family, or increase your property value, there might be an ADU solution that’s perfect for you.
Don’t let the rules intimidate you. Let’s figure them out together and see how we can make them work in your favor. After all, once you know the rules, you can play the game – and maybe even hit the jackpot with your property.
The ADU Effect: Lower Costs for Buyers, Increased Value for Sellers
Utah’s housing shortage isn’t news to anyone who’s tried to buy or rent here lately. It’s a tough market, but that’s where ADUs come in. They’re not just a trend; they’re a smart solution to a real problem.
Buyers are increasingly seeking homes with existing ADUs or the potential to add one, recognizing their ability to offset housing costs through rental income or multi-generational living. For sellers, ADUs are a valuable asset, adding immediate value to their property and boosting appeal when it’s time to sell.
Think about it: ADUs add housing without changing the character of our neighborhoods. They’re like secret weapons in our battle against the housing crunch. I’ve seen them turn tight situations into win-wins for homeowners and renters alike.
But it’s more than just numbers. ADUs are breathing new life into our communities. They’re bringing generations together, helping young folks get a start, and letting older folks age in place. They’re creating opportunities for people who might otherwise be priced out of their own neighborhoods.
Utah’s communities are becoming more flexible, diverse, and connected than ever before. Relaxed ADU regulations are key to unlocking the full potential of our neighborhoods. Young couples can now live in and contribute to the areas they love by renting out someone’s converted garage apartment. Grandparents are able to live just next door to their grandkids in backyard cottages, strengthening family bonds.
These aren’t hypothetical scenarios – they’re happening right now across Utah.
ADUs aren’t just about adding square footage; they’re about adding possibilities. They’re about making our communities more resilient and adaptable. And that’s why I believe in them – not just for today, but for Utah’s future.
Shoot me a text or give me a call at 801-949-9878, email me at Julia@JuliaSplan.com, or fill out this form and me or someone from my team will get in touch with you ASAP.
And don’t forget to subscribe to our newsletter for more of my on-the-ground real estate insights in Salt Lake City and the Greater Salt Lake metro area.
Looking for more resources on Utah ADUs? Check out my bonus guide to secondary units below, as well as a list of resources you can use to learn more about ADUs in Utah.
Bonus: Quick Guide to Secondary Units
Let’s break down the lingo without the jargon, shall we?
Here’s my simple take on these secondary units:
- ADUs (Accessory Dwelling Units): Think of these as the Swiss Army knives of housing. They’re versatile, compact, and can be attached or detached from your main house.
- Basement Apartments: Your underground oasis. Great for privacy and naturally cool in summer.
- Casitas: The fancy name for a guest house. Perfect for that holiday vibe in your own backyard.
- Mother-in-Law Suites: Despite the name, not just for in-laws! These attached units offer closeness with a dash of independence.
- Rooms Over the Garage: The ultimate space maximizer. Turn that attic into an apartment!
Now, choosing the right type isn’t one-size-fits-all. When clients ask me what’s best, I fire back with questions:
- What’s your main goal? Extra income? Family space?
- How much privacy do you want between units?
- What’s your budget?
- Any mobility concerns to consider?
Your answers shape the perfect secondary unit for you. Remember, the best choice is one that fits your lifestyle, property, and dreams. Let’s find that sweet spot together!
Book a Call Today
ADU Resources for Current and Future Utah Homeowners
- Salt Lake City Corporation. “Building an ADU: Guide to Accessory Dwelling Units.” Salt Lake City Planning Division, https://www.slcdocs.com/Planning/Guides/ADU_Handbook.pdf. Accessed 27 Sep. 2024.
- Hawkins, Samantha. “Cities on the Wasatch Front are cutting red tape to allow more houses in backyards.” Building Salt Lake, 10 Jun. 2024, https://buildingsaltlake.com/cities-on-the-wasatch-front-are-cutting-red-tape-to-allow-more-houses-in-backyards/. Accessed 27 Sep. 2024.
- Harper, Zoe. “ADU Laws and Regulations in Utah.” Steadily, 18 Jan. 2024, https://www.steadily.com/blog/adu-laws-and-regulations-in-utah. Accessed 27 Sep. 2024.
- Clark, Melanie. “Accessory Dwelling Units: Utah Land Use Regulation Topical Series.” Utah Land Use Institute, Mar. 2023, https://utahlanduse.org/wp-content/uploads/2023/04/ADR-Outline.pdf. Accessed 27 Sep. 2024.
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