Not using the garage on your property? Get extra income

Especially nowadays, when real estate prices are high and the demand for housing is still increasing, many owners of such space decide to use the garage effectively. That is why so-called ADUs are created and people earn passive income as a result of ADUs.

How people in United States do not use their garages? 

According to a study published by the US Department of Energy, up to 25% of households with a double garage do not park a single car in it. Another 32% of households park only one vehicle, with the remaining space often used as storage for seasonal items, old furniture, bicycles and other junk that has nowhere else to go.
In many cases, the garage is an underutilized space that could be used as a full-fledged home or generate income.

And what about Los Angeles specifically?

In Los Angeles, the situation is a little different - as a densely populated metropolis with limited building options, people are forced to make the most of every square meter. That's why garage conversions to ADUs are increasingly popular in LA. The city even encourages this form of housing through simplified permitting processes and changes to laws.

Have you heard of an ADU?

An ADU, also known as an accessory dwelling unit, is a small residential unit located on the same property as a main residence. There are several forms of ADU:
• Garage conversion (the most common form in LA),
• A detached small house in the yard,
• An addition to the main house,
• A basement or attic conversion.
An ADU has its own entrance, kitchen, bathroom, and living space, providing a full-fledged residence. In California, ADUs are considered an important solution to the housing shortage, and the state supports their construction by law.

Why to convert a garage to an ADU?

Converting a garage to an ADU brings with it a number of advantages - both financial and practical:

1. Extra rental income
You can rent out a converted garage:
• Short-term - for example, through platforms like Airbnb, ideal for tourists or business travelers,
• Long-term - ideal for students, singles, or couples looking for affordable housing in expensive areas like LA.
To learn how much you can earn with an ADU, read our article  How Much Can I Make Renting Out an ADU?

2. Family or Guest Housing
An ADU can also serve as:
• Housing for adult children who are returning home,
• Home for grandparents or caregivers,
• Accommodation for visitors

3. Increase in Property Value
Investing in an ADU increases the overall value of your property. When selling a home, the presence of an ADU can be a key deciding factor for buyers looking for additional income or living flexibility.

4. Adaptability
You can adapt an ADU over time to suit your current needs – today as an office, tomorrow as a guest house, in a few years as a separate residence for a family member.

If you have a garage on your property that you don’t use or is just used as storage for things you haven’t seen in years, consider converting it into an ADU. This is an investment that can generate passive income, increase the value of your home, and at the same time solve the need for housing in a high-cost city.