Homeowners smart enough to build a granny flat on their property reap the financial benefits for decades — but they aren’t the only ones that stand to benefit.

Granny flats have huge benefits for cities, homeowners, and renters. Let’s explore the benefits of building a granny flat.

benefits of building a granny flat

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Benefits of Building a Granny Flat for the Homeowner:

Benefit #1: House an aging parent or family member

Building a granny flat is a great way to keep aging parents close, while still affording everyone the level of privacy and respect they want. Portland homeowners, Jill and Kevin, built a granny flat for Jill’s aging mother after she was confined to a wheel chair. She loves being close and they appreciate the extra baby sitter for their two young children. They’re all able to share meals together and it’s brought a lot of joy to their lives having everyone closer.

benefits of building a granny flat aging in place opportunities

Benefit #2: Bring in consistent monthly income

Granny flats are a great real estate investment and can help families accrue wealth over time. You can look on Craigslist for what apartments in your neighborhood rent for to get an idea of what your monthly rental income might be.

benefits of a granny flat: passive rental income

Benefit #3: Downsize into the granny flat and live mortgage-free

Owning a house is the quintessential American Dream, but it often comes at the steep price of being chained to a mortgage. Feel like traveling more? Starting your own business? Having more financial freedom? Some couples explore downsizing options that include moving into their granny flat and renting out their main house. This often covers their full mortgage leaving them free to do more of what they love.

Benefit #4: Increase your property value

It’s no surprise that building a granny flat on your property increases your home value. It’s expected that a granny flat brings an ROI of approximately 70 percent. So, if you spend, $100,000 building your secondary unit, your house appraisal value would increase by $70,000. Now, because building a granny flat isn’t as common as say, renovating your kitchen, these numbers can vary from appraisal to appraisal. As more people built granny flats you can expect the ROI to stabilize and possibly increase. Granny flats are a long-term investment, not a get-rich-quick scheme.

Benefit #5: Stay in a great neighborhood, but increase space

Pam lives in a wonderful neighborhood, but her house is only 1,000 square feet. She’s owned the property for nearly 13 years and doesn’t want to move or incur a new higher property tax. Yet, she needs more space. A granny flat offered a great solution.

beautiful neighborhood benefits of a granny flat

Benefit #6: a Home office that offers privacy to work

Many people work remotely or have their own business that they run out of their home. Building a granny flat can provide extra space and privacy to keep a healthy life-work balance. Lynn quit her job at the Los Angeles Times when her daughter was born. After her son arrived a few years later, she decided to establish her own freelance business. Working from home with two young children made it essential for Lynn to have a private space where she could conduct interviews.

benefits of a granny flat having a home office

Benefit #7: Friends and family can stay for extended visits comfortably

It’s nice to have friends or family be able to stay for longer than a 3-day weekend without everyone fighting for a bathroom. A granny flat provides a dedicated space so that family can stay comfortably for longer periods. For example, Chirranjeevi lives in San Diego, but his family still lives in India. He built a granny flat because his mom likes to come and stay for 2-month visits. It’s nice for everyone to be close and have their own space to retire to at night.

Benefit #8: Flexibility

People’s housing needs change over time and having a granny flat provides you the flexibility to use it however you wish.

Benefits of Building a Granny Flat for the City:

There are some huge economic incentives for relaxing granny flat regulations and some cities are finally taking note.

  1. Provide more affordable housing options
  2. Reduce urban sprawl
  3. Develop green and environmentally friendly
  4. Increase city revenue through property tax increases
  5. Higher density near public transit
  6. Increase housing stock without compromising neighborhood character
  7. Increase revenue for local businesses
  8. Makes neighborhoods more walkable
  9. Stabilizes neighborhoods

benefits of granny flats for renters

Benefits of Building a Granny Flat For the Renters:

Lastly, renters also reap the positive impacts of granny flats. They include:

  1. Provide affordable rental options
  2. Give renters access to better neighborhoods that normally too expensive
  3. Access to better schools and safer places to live
  4. Privacy of your own space
  5. No roommates

Plan, hire, and manage your ADU project with Maxable.

At Maxable, we believe that building an ADU should be fun and exciting. You shouldn’t have to be the one to deal with confusing obstacles like permitting snafus or ever-changing regulations. We’ll be by your side every step of the way and connect you to experienced designers and general contractors in your area to make sure your project goes as smoothly as possible.

Leave the headaches to us! Check your address and see what Maxable can do for your home during a free ADU Planning Call.