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The Portland housing shortage is driving up real estate prices making owning and renting out an ADU (accessory dwelling unit)  to offset mortgages attractive to homeowners and buyers. On the flip side…  according to an article in accessorydwellings.org., in 2015 property owners who recently completed a detached ADU saw their property taxes increase as much as 500% in some cases!!!  When buying or selling a property with an ADU or considering building one, it is essential to know the questions to ask to achieve your goals.


Inform the prospective buyers of any potential or actual rental income from the ADU. If it is currently rented, what is the current rent and is there a lease in place?  What are the terms of that lease?  If it is not currently rented, research the potential rental income for the property.  Potential rental income is a desirable characteristic to offset mortgages in a market where prices are rising.
Include an architectural diagram/floorplan and as many pictures of the ADU as possible in the RMLS. Help people visualize how they would use the space!
 Have answers to important questions readily available to buyers:
a. Is the ADU a fully permitted, legal ADU? Are all permits finalized?
b. Due to the 2015 tax implications on recently built detached ADUs, disclose current property taxes as well as whether the taxes have been reassessed since the completion of construction.
c. List whether the ADU utilities are separate from the main house.
Use words like “ADU, income potential, many possible uses, studio” in your property description.  Buyers search for these words and this way they can find your special feature home!
Hire a real estate agent who knows the ins-and-outs of the ADU market. This will facilitate a smooth, successful experience and help you to avoid any undesirable surprises during or after the transaction.
For more expert advice on listing or purchasing a home with an ADU or ADU potential, contact YogaBug Real Estate at pam@yogabugrealestate.com. It would be a pleasure to serve you. Thanks for your referrals and trust.

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