How ADUs Generate Income for Homeowners as an Investment

Adding a room is a significant construction project. In some ways, it is more extensive than building a new house. Why is that? Because adding a room requires the same construction steps and subcontractors as creating a custom home, with the bonus of careful demolition. In addition, it requires more complexity to ensure that it fits well and comfortably with the existing living space. For this reason, when planning an ADU project, it is best to work with an architect during the design phase of the room addition and hire a general contractor to oversee the entire project. That is, if the plan to add to the house is simple and the owner has experience in building homes and working with subcontractors, then working as a general contractor is possible. . Working as their general contractor can save a homeowner 15-30% on the total cost of a room extension.

Decide On Goals To Add To Your Room

The first step when planning a room addition is understanding your goals for your new living space. For example, it is a new living space to support a growing family, and if so, the new area will be a bedroom, a family room, or an extension of an existing room, for example. Expand the kitchen. Clearly defining the purpose of the extra living space can help you plan the next big job when adding a room.

Developing A Project Budget

Once you have a clear idea of ​​what you want to build for your home addition, you need a budget for your next project, including ten emergency funds. Therefore, your project’s first target expected cost should be set at ninety percent of the maximum budget. An emergency fund will help ensure you have enough money to complete the project if many expenses arise during the construction.

Contact Your Local Building Inspector

Check with your local building inspector to see if any legal issues may prevent you from adding to your room. For example, are any requirements, lot size restrictions, or covenants limiting your ability to build an addition to your home?

Hire An Architect

Hiring an architect is not necessarily cost-effective, depending on the type of room extension you propose. An architect can provide various services, from just giving building plans to managing the entire construction process. However, for many homeowners, hiring an architect for a design job is enough to make the bedroom blend well with the existing home.

Hiring A General Contractor

Get quotes from several general contractors and interview them carefully to see which one you think will have the best chemistry to work consistently for two to three months.

Make sure you check the references and don’t have to choose the lowest price. Look for a quote that includes a fixed price, comprehensive and detailed materials, important closing information, and transparent payment terms. This way, you will know in advance what you will get in terms of construction cost, when the project will be completed and when you will have to pay for the services provided.

When checking your general contractor’s references, check the contractor’s current and past clients, such as the Better Business Bureau, your state, and your insurance company. Leave no stone unturned when evaluating a general contractor for a large residential building project.

Remember that the general contractor will hire subcontractors for your room addition project. The last thing you want is a subcontractor to lock your home into a public contract you don’t pay much for. It is essential to ensure you hire a reputable contractor you can trust and rely on.

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