Top 3 Ways a DADU Can Generate Income

DADUs, also known as detached additional dwelling units, can be a lucrative form of passive income when built and managed as a smart investment. DADUs live as separate structures on your main house’s property and can be perfect for in-law quarters, rental properties, and more. If you have the land and meet all the zoning requirements to add a DADU to your property, it may generate income as well.

So, how does one use a DADU to generate income?

DADU cottages make great vacation getaways.

Especially if you live in a prime vacation destination, outfitting your DADU to be a cozy little cottage for two to stay in on vacation is a great way to generate passive income. Make sure to invest in the DADU design and make the accommodation easily accessible for guests who come from out of town. You can list it on rental sites like Airbnb, VRBO, and more when it’s finished.

DADUs can act as apartments and provide steady rental income.

Don’t want to accommodate travelers always coming and going from your property? Find a reliable renter who wants to live in your DADU for a standard lease term. Depending on how you want to find your renters, posting your DADU on travel nursing accommodation websites may be a great way to find a professional to stay in your rental.

House your in-laws in the DADU.

Although this technically isn’t an income-generating move unless you charge your in-laws rent, housing your in-laws in your DADU provides them with a place to stay nearby but not in your house. This gives both you and your in-laws privacy, and it saves you both money if rent isn’t in the picture.

Are you curious if building an addition on your property is a possibility? Give The Dan Company a call at (615) 395-6910. We have dozens of years of experience in the construction industry and are able to do remodeling jobs, new builds, additions, and more.