Real Estate Definitions › Property Types & Ownership

Accessory Dwelling Unit (ADU)

Outland and Associates Real EstateJames Outland, Broker AssociateDRE #01314390

What is Accessory Dwelling Unit (ADU)?

An accessory dwelling unit is a secondary, smaller home on the same lot as a main residence — such as a converted garage, basement apartment, or backyard cottage. California has expanded laws encouraging ADUs to add housing. They can provide rental income or space for family.

Example: A homeowner builds a backyard ADU and rents it out for extra monthly income while keeping the main house as their residence.

Important Disclaimer

This definition is provided for general educational purposes only and is not legal, tax, or financial advice. Real estate laws and lending rules change and vary by situation. Before acting, consult a licensed attorney, CPA, lender, or other qualified professional in the State of California regarding your specific circumstances.

Copied