Part 8: Top 10 Ways an ADU Can Make You Passive Income
This is the eighth article in Pinnacle Design and Build’s 10-part remodel and ADU series. Accessory Dwelling Units (ADUs) aren’t just for extra space—they can be powerful income generating assets. Here are 10 smart ways your ADU can start making you money.
1. Long-Term Rental
Rent your ADU to a tenant on a 12-month lease for reliable monthly income.
2. Short-Term Rental (Airbnb/VRBO)
List your ADU for vacation or travel stays. Great for locations near city centers or tourist spots.
3. Traveling Nurse or Business Housing
Offer furnished stays for healthcare professionals or remote workers who need flexible leases.
4. ADU for Adult Child with Rent
Provide space for grown children while still charging below-market rent.
5. Rent to Seniors or Retirees
Offer quiet, ground-level living space to retirees looking to downsize.
6. Create a Home Office Rental
Lease your ADU as a dedicated workspace for entrepreneurs or therapists.
7. Film or Photo Location
Use your ADU as a set for photo shoots, commercials, or TV productions (especially in LA).
8. Split the Lot (SB-9 Opportunity)
Convert your ADU into a standalone legal residence under new CA laws, then sell or lease it.
9. Live in the ADU, Rent the Main Home
Flip the equation: downsize into the ADU and rent out your primary house for higher monthly income.
10. Future Resale Value
Even if you don’t rent today, your property will appraise higher and attract more buyers when it includes an income-ready ADU.
Curious how much income your ADU could generate? Contact Pinnacle Design and Build for a free feasibility and rental income analysis. We’ll help you plan, design, and build your ADU to match your financial goals.