Multitaskr Blog

Take Care of Granny

An accessory dwelling unit, or ADU, or Granny Flat, is an additional residential building that occupies the same lot as a primary residence.
May 17, 2020 09:00am
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Examples of an ADU could be a guest house or a detached garage with a rented apartment above.

A recent Pew Research Center study showed that 66.5 million Americans live in a multigenerational home with two or more adult generations under the same roof. This means that 20% of us are living with grandchildren or grandparents, up from 12% in the 1980s. It also means that having a granny flat that an elderly relative can live in might be more important now than it has ever been in the past.

For many, granny flats are being viewed as insurance against the financial hardship of elder care housing. Families have accelerated bringing their loved ones home as the coronavirus is particularly lethal in older populations: Seniors in a home where residents share bathrooms, dining facilities, and often bedrooms are particularly vulnerable.

There are more than 25,000 assisted living facilities across the country, and the median monthly cost to live in one is $4,000, according to the National Center for Assisted Living.

Assisted home living models are in danger. If you add the challenges of deepening financial pressures, sicker residents, limited oversight and too few employees, they now face a crisis that could force companies into bankruptcy, roil the industry and close facilities — putting frail seniors at greater-than-ever risk.

If you don't have a granny to take care of, a great way to turn a granny flat into a source of guaranteed income is to ask tenants to sign a lease. If you live in a heavily populated area or a place tourists often visit, an ADU could become a passive income stream. And if you’re strapped for cash, you could move into your granny flat and rent out the rest of your home.

If you’re not interested in handing the keys to your home over to a tenant for a full year, consider renting out your granny flat temporarily. There are several online resources that you can use to list your unit, including VRBO, HomeAway, Rent.com and Airbnb.

The choice is yours.

Claudio Robertson
Financial Expert at Multitaskr