Leveraging ADUs as Rental Income in Seattle

Accessory dwelling units (ADUs) present an appealing opportunity for Seattle homeowners to generate rental income. Here’s what to know about constructing and renting out ADUs.

ADU Basics

ADUs, also known as mother-in-law suites, are secondary dwellings added to existing properties. They have their own kitchen, bathroom, living area, and entrance.

Seattle has zoning allowances and programs to encourage ADU development. This includes pre-approved designs to simplify permitting.

Lucrative Rentals

The average monthly rent for a Seattle ADU is $1,600-$2,200. After expenses, leasing an ADU can provide over $15,000 in annual rental income.

High demand and favorable rental rates make ADUs a stable source of profit for Seattle homeowners. Especially when designed smartly to maximize appeal and functionality.

Financing Options

Building an ADU involves significant upfront costs. Many homeowners utilize funds from a cash-out mortgage refinance or home equity loan.

Investing in an ADU costs far less than buying another investment property. And financing helps fund construction to start collecting rental income sooner.

ADUs are an attractive option for Seattle homeowners to leverage their existing property and add a cash-flowing rental unit through strategic financing.

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