On July 15th 2023 the City of Greenville, SC published an updated zoning code that includes changes on a popular topic with both residents, and real estate investors. ADU’s or Accessory Dwelling Units.
What’s an ADU? For those not in the know the ADU has become a popular form of expanding ones usable living space on a parcel. ADU’s are smaller secondary homes located on your property that provide additional housing. “In-law suites” and “Carriage Houses” are some commonly used names for these types of dwellings.
What Did The City of Greenville Change?
The new code modifications can be found and read directly here. A few key highlights are that ADU’s are permitted in certain zones and have several restrictions regarding where and how they can be constructed on a property.
One key note is the maximum size of 1,000 square feet and this is also relative to a % of the primary dwelling unit. In other words you can not by default build to the max limit of the structure size, and don’t forget there are height restrictions too. (Building a 5 story skyscraper in your back yard isn’t going to fly.)
Can ADU’s Be An Opportunity For Real Estate Investors In Greenville, SC?
At Bird Dog Group we work with many real estate investor clients who have a keen interest in ways to add value to their properties and increase income. The new ADU’s zoning rules do allow for a very minor increase in density to ones property but in our opinion this is not a significant change that’s going to bring ADU’s to every backyard.
One detail of note is that the City rules on STR’s (Short-Term Rentals) have not changed with this allowance of ADUs. You still can not generally operate a Short-Term rental within the city limits in an area zoned residential. There are also additional requirements that the property (primary residence) be owner-occupied. A Mid or Long-term rental would be the only option; allowing home owners to potentially “house hack” or supplement their monthly housing costs with the additional rental income from a tenant of an ADU.
Should I Build An ADU On My Property?
Many homeowners will review the new zoning/code rules and consider an ADU addition to their property. The question ultimately is “is it worth it?” A fully built, ADU is not a small project, and the costs will likely be considerable with a licensed contractor performing permitted work. An ADU to be functional needs a foundation, framing, HVAC, windows, doors, and much more. We would expect the typical ADU construction project from scratch in the city limits to average at least $75,000 – $200,000 or more.
Despite the costs, for some residents and ADU will be a worthwhile investment. An increasing number of families are staying put in their homes for longer periods of time and “stacking up” with multiple generations living under one roof. The quintessential use of an ADU often referred to as the “In-law suite” is just that. To give a private space for family members who visit on occasion or those who need to occupy full-time. Giving a property additional beds/baths is typically a solid way to increase it’s value and when that living space offers the flexibility of income or housing a family member we belive this will positively increase the value of the home in most cases.
Looking for a home with an ADU conversion opportunity? Use our search function to look for properties with current detached garages that could be renovated or use our keyword search to search “ADU” or “In-Law Suite” in the filter options!