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Accessory dwelling units (ADUs) are small, self-contained living spaces located on the same lot as a primary residence, offering privacy and flexibility for homeowners. Boarding houses provide multiple rented rooms with shared common areas, targeting short-term or long-term tenants, often in urban settings. Explore the benefits and regulations of both to determine the best housing solution for your needs.
Why it is important
Understanding the difference between Accessory Dwelling Units (ADUs) and boarding houses is crucial as ADUs are legally defined secondary residences often regulated for homeowner use, while boarding houses provide shared accommodations primarily for renters and have distinct zoning and licensing requirements. Investment decisions hinge on compliance with local ordinances, impacting property value and rental income potential. ADUs typically support long-term housing growth, whereas boarding houses cater to transient populations, influencing community planning and demographic trends. Accurate differentiation ensures proper legal adherence, maximizing real estate asset utilization and minimizing regulatory risks.
Comparison Table
| Feature | Accessory Dwelling Units (ADUs) | Boarding House |
|---|---|---|
| Definition | Separate living units on the same property as a main home. | Single building where multiple tenants rent individual rooms, sharing common areas. |
| Typical Size | Up to 1,000 sq ft, varies by local regulations. | Varies widely; often larger multi-room setups. |
| Ownership | Usually owned by the primary homeowner. | Often owned by a landlord renting out rooms. |
| Renting Style | Entire unit rented as one apartment. | Individual rooms rented to separate tenants. |
| Zoning Regulations | Subject to local ADU zoning and building codes. | Often requires commercial boarding or multi-family zoning. |
| Privacy | High privacy; self-contained living space. | Shared common areas reduce privacy. |
| Use Case | Extra income, housing family members, aging in place. | Affordable housing option; short or long-term stays. |
| Typical Rental Income | Consistent monthly rent for full unit. | Multiple room rents can increase income but management-intensive. |
Which is better?
Accessory dwelling units (ADUs) provide homeowners with private, self-contained living spaces that enhance property value and offer long-term rental income opportunities. Boarding houses typically involve shared facilities and communal living, which may limit privacy and appeal to a narrower tenant market. ADUs often comply with zoning regulations more easily and attract higher-quality tenants, making them a preferable real estate investment for many property owners.
Connection
Accessory dwelling units (ADUs) and boarding houses are connected through their role in increasing residential density and providing affordable housing options within urban real estate markets. Both ADUs and boarding houses maximize the use of existing properties by allowing multiple tenants or families to live on a single lot, contributing to efficient land use and addressing housing shortages. Real estate investors and developers often leverage ADUs and boarding houses to generate additional rental income and enhance property value in high-demand neighborhoods.
Key Terms
Occupancy Limits
Boarding houses traditionally allow higher occupancy limits by renting individual rooms to tenants, often subject to local zoning regulations that specify maximum residents per unit. Accessory dwelling units (ADUs) typically have stricter occupancy restrictions, frequently limited to family members or a small number of unrelated occupants to maintain neighborhood character. Explore detailed regulations and occupancy standards to determine which housing option best fits your needs.
Zoning Regulations
Boarding houses and accessory dwelling units (ADUs) are governed by distinct zoning regulations that affect their placement, size, and occupancy limits in residential areas. Boarding houses typically require commercial zoning or special permits due to their multiple unrelated tenants, whereas ADUs are often permitted as secondary residential structures within single-family zoning districts. Explore the specific zoning codes in your area to determine how these regulations impact your property development options.
Rental Agreements
Boarding houses typically involve rental agreements that cover individual rooms with shared common areas, often requiring more detailed rules about communal living and guest policies. Accessory dwelling units (ADUs) have rental agreements akin to traditional leases, focusing on the entire unit's privacy and separate utilities, streamlining tenant-landlord interactions. Explore the specific rental agreement requirements for both housing types to ensure compliance and tenant satisfaction.
Source and External Links
Boarding house - A boarding house is a residence where lodgers rent rooms for varying periods, typically including meals and shared facilities, often found in family homes and historically common in seaside and college towns.
What is a Rooming House? - A rooming house, also known as a boarding house or single-room-occupancy dwelling, is a rental property with multiple unrelated renters sharing facilities such as kitchens and bathrooms, with rentals often paid weekly or daily.
What Is A Boarding House? - CountyOffice.org - Boarding houses provide affordable lodging with meals and communal living spaces, serving students, workers, and travelers with various accommodation styles and amenities.