Accessory Dwelling Units 101: Adding Value & Space to Your Home the Smart Way

Discover how Accessory Dwelling Units (ADUs) can revolutionize your property! In this video, I am taking you through the benefits, requirements, and financial insights of adding an ADU to your home. Learn to maximize space and income in this must-watch for homeowners and investors alike.

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In the current housing market, the concept of accessory dwelling units (ADUs) is becoming increasingly popular. Today, we're diving into what ADUs are, their benefits, and some crucial considerations if you're thinking about adding one to your property.

What is an Accessory Dwelling Unit (ADU)?
An ADU is essentially a secondary housing unit on a single residential lot. It's complete with its own kitchen, living area, and bathroom facilities. These units can be attached to or detached from the primary residence, such as an apartment over a garage, a converted basement, or a standalone structure. The key feature of an ADU is its separate entrance, maintaining privacy and independence from the main house.

Basic Requirements for ADUs
To qualify as an ADU, there are several requirements:

It must be smaller than the main living unit.
A separate entrance is a must.
The kitchen should include necessary amenities like cabinets, a sink, a stove (or hookup), and a refrigerator.
It needs a designated sleeping area.
For financing, some ADUs can be manufactured homes, depending on the loan.
Most importantly, your property must be zoned for an ADU.
The Rising Trend
ADUs are gaining momentum for several reasons. Housing costs are on the rise, making ADUs an attractive option to add living space. Additionally, the increase in multi-generational living arrangements has families looking for ways to stay close without sacrificing privacy and independence.

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We are licensed to operate in Colorado and can guide you on everything that you need to know about the housing market and the home loan process to make your home buying experience easy and exciting for you!

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Carrie Bakunas & Scott Baade
Managing Brokers/Loan Officers

Carrie NMLS #1658297
Scott NMLS #345757
Company NMLS #1788837

7887 E Belleview Ave #1100
Englewood CO 80111

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About Colorado Lending Team
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