Portland Oregon, like many cities in the United States, has a shortage of rental properties, and this has led many owners to consider investing in an accessory dwelling unit for their homes.
With an accessory dwelling unit (ADU), a homeowner can earn rental income from their property without having to build onto their home.
In this article, we will break down what to expect when investing in an ADU so that you will know if this decision is right for you.
Tips For Choosing The Right ADU
Since the start of the rental crisis in Portland, ADU’s have gotten easier to build because the city council has understandably made it easier for homeowners to build ADU’s on their properties. After all, one new ADU potentially means one less person on the streets.
Ultimately, choosing the right ADU depends on your budget, and desire because you can spend up to $100K or more building one from the ground up. Or you can buy a pre-built ADU and have one brought to your property for well under $100K
Things To Do Before Building An ADU
- Get your permits first – Always get the right permits first because there’s nothing worse than starting a project, only to have to stop, because you don’t have the right permits for your project.
- Check the area first – Depending on where you live in the PDX area, you may live in a neighborhood where there are a lot of NIMBY’s (not in my backyard) people who will oppose your ADU. This is why you should also make sure there’s no neighborhood opposition before you get started.
- Talk to a lender – Unless you plan on paying cash for your ADU, you will have to finance the project but keep in mind that some lenders are pickier about financing ADU’s, and requiring 25% down, so it’s best to also wrap up financing before moving forward.
Contact Rent Portland Homes
At Rent Portland Homes, we specialize in local property management and will save you the time, money, and hassle of managing your rental property yourself.
For more information about building an ADU, or to speak with us about the services that we can offer you, contact us today by clicking here.