As you may know, Salt Lake City passed an ordinance last October that allowed all homeowners to have accessory dwelling units (ADUs) on their property. If you’re looking to make some extra money through real estate investing or you’d like to have additional family members (such as in-laws) live on your property, ADUs are a great option.
However, today we want to remind you that there are different types of legislation being considered for different cities regarding ADUs, so it’s important that you check with your local municipality before deciding to rent one.
The reason we mention this is because companies that specialize in ADUs, such as Airbnb and VRBO, were market disruptors when they first came on the scene. They gave homeowners a platform to rent their ADUs, and as more and more started doing it, state and city governments became concerned that a surplus of ADUs would become a potential neighborhood nuisance. They don’t want streets to become overcrowded with cars or households with ADUs to become disruptive, so they stepped in and established some ground rules for renting them.
There are a lot of great opportunities to be had with ADUs, but you need to make sure that you follow these rules before adding one to your property. Also, you should consider the management aspect of renting out an ADU because that responsibility falls on you.
As always, if you have any more questions about this or any other real estate topic, don’t hesitate to reach out to us. We’d be glad to help you.