What Is an ADU? Can it enhance your Destin Real Estate Investment?

If you've been exploring real estate opportunities in the Destin area, you might have come across the term ADU. But what is an ADU, and why are they gaining popularity? Let’s break it down.

ADU stands for Accessory Dwelling Unit. Simply put, an ADU is a secondary housing unit on a single-family residential lot. It’s often referred to as a guest house, carriage house, Mother-in-law suite, granny flat, or even a backyard cottage. ADUs can be attached to your main home, like a basement apartment, or they can be detached as a standalone structure.

Why Are ADUs Popular?

There are several reasons homeowners and investors appreciate ADUs:

• Additional Income: Many homeowners rent out their ADUs for extra income, especially in desirable vacation spots or high-demand rental markets.
• Multi-generational Living: ADUs provide a comfortable space for aging parents, adult children, or extended family members while maintaining privacy.
• Property Value Boost: Adding an ADU can increase your home’s overall value and appeal to future buyers.
• Affordable Housing Solutions: ADUs are often a more affordable option for renters compared to traditional apartments.

Types of ADUs

When considering an ADU, it’s helpful to understand the different types available:

• Detached ADU: A separate structure, often built in the backyard.
• Attached ADU: Connected to the main home, typically with a separate entrance.
• Garage Conversion: Transforming an existing garage into a livable space.
• Basement or Attic ADU: Utilizing unused basement or attic space for an apartment.

How to Build an ADU

Building an ADU involves careful planning and navigating local regulations. Here are some steps to get started:

1. Check Local Zoning Laws: Each city or county has rules governing ADUs, including size restrictions and setback requirements.
2. Design Your ADU: Work with an architect or contractor to create a functional and comfortable layout.
3. Secure Permits: Obtain the necessary permits before construction begins.
4. Consider Utilities and Access: Ensure proper plumbing, electrical connections, and a safe entrance.

Is an ADU Right for You?

If you’re looking to generate rental income, accommodate family members, or add value to your property, an ADU could be a great solution. With increasing demand for flexible housing options, ADUs are becoming a smart investment for homeowners in Destin, Florida and around the country.

By understanding the basics and exploring your options, you can make an informed decision about adding an ADU to your real estate portfolio.

Newman-Dailey Resort Properties has been a trusted name in Emerald Coast real estate since 1985, consistently ranking among the top 10% of real estate companies in the Emerald Coast Association of Realtors. The firm's continued success is driven by a team of seasoned professionals who prioritize client satisfaction and excellence in service.

For more information about Newman-Dailey Resort Properties and their real estate services, visit www.DestinSales.com or call 850.837.1071.

For more real estate tips and investment insights, stay tuned to our Real Estate blog!

Published on Monday, June 23, 2025