Are you considering adding additional housing to your backyard? If so, you have a few options to choose from. Two of the most popular options are accessory dwelling units (ADUs) and condominium regimes. But how do you choose between the two?
First, let’s define what these two options are. An ADU is a secondary housing unit that is located on the same lot as a single-family home or duplex. It can be used for a variety of purposes, such as a guest house, a rental unit, or a home office.
A condominium regime, on the other hand, is a form of property ownership in which individual units are owned privately, while the common areas are owned jointly by all unit owners.
If you are considering creating a condominium regime for your ADU, Stateful could help you get the regime set up while following all the applicable laws and regulations.
So, what are the differences between these two options? The main difference is ownership. With an ADU, the unit is owned by the same person or entity that owns the main house. With a condominium regime, the unit can be owned separately from the main house. This can be beneficial if you ever decide to rent out the ADU, as it will be easier to do so if it is owned separately from your main house.
Another difference between ADUs and condominium regimes is the amount of flexibility they offer. With an ADU, you have a lot of flexibility in terms of how you use the unit. You can use it for a variety of purposes, and you can change its use over time. With a condominium regime, you have less flexibility, as the unit will be subject to the rules and regulations of the owners’ association.
When it comes to cost, ADUs are generally less expensive to create than condominium regimes. However, condominium regimes can make your ADU more valuable, as it will be considered a separate property. This can be beneficial if you ever decide to sell your property.
So, how do you choose between an ADU and a condominium regime? It really depends on your specific needs and goals. If you want a lot of flexibility and don’t plan on renting out your ADU, an ADU might be the best option for you. However, if you want to rent out your ADU or if you want to increase the value of your property, a condominium regime might be the better option.
In the end, it’s important to consult with an attorney to ensure that you are following all applicable laws and regulations. We, at Stateful, can help you get your backyard evaluated at the best prices. Creating an ADU or a condominium regime can be a complex process, but it can be a valuable way to add additional housing to your backyard. To know how and to get your backyard valued, get in touch with us or visit our website.
