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Maximize Your ADU ROI by Focusing on This Overlooked Upgrade

Thinking about an ADU project? Whether you're looking to generate rental income or add value to your property, one often-overlooked upgrade can dramatically boost your return on investment: landscaping. It’s easy to assume that kitchens and bathrooms are the top value drivers, but for ADUs, the exterior plays a key role in maximizing both appeal and equity.

Why First Impressions Are Everything for Your ADU?

Homeowners tend to focus their budgets on interior updates, often neglecting the outdoors. But curb appeal is just as important for an ADU as it is for the main house. A thoughtfully designed landscape will make your ADU feel like a seamless part of your property, rather than an afterthought.

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Don’t Throw All your Money on Plumbing or Electrical Updates

Improving plumbing or upgrading electrical wiring may enhance functionality, but they won’t always offer a solid return on investment. Renters and buyers expect basic functionality.

On the other hand, investing in landscaping creates an immediate visual impact that can justify higher rents and appraised values.

The Cost-Effective Boost Landscaping Provides

Landscaping is a budget-friendly way to enhance your ADU’s value with impressive returns. Simple upgrades, like:

  • Adding a sprinkler system
  • Installing drought-resistant plants
  • Creating defined pathways and patio spaces
  • Installing outdoor lighting

When you get a good contractor, you could update your lawn, add a sprinkler system, flowers, etc. for $7,000 to $15,000, and in many markets, see an ROI of at least twice. If your property’s exterior is in bad shape, you could see even greater returns. It’s almost like getting an infinite return on your investment.

These changes don’t just improve the curb appeal, they enhance your ADU’s livability and desirability, which can lead to higher rental income and a better overall property value.

How Landscaping Affects Appraisals and Renter Interest

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Even if your goal is to rent out your ADU rather than personally use it, landscaping still matters. Appraisers take into account the overall presentation of a property, and a neglected ADU exterior can negatively influence their valuation. Similarly, prospective tenants are more likely to choose a well-landscaped unit over one that looks untidy or poorly maintained.

Allocate Part of Your ADU Budget to Landscaping

For any project, set aside at least 5% of your budget for landscaping improvements. Small additions like greenery, hardscaping, and specific outdoor spaces make a substantial difference in the perceived value of the ADU. Whether you plan to rent, refinance, or sell, these enhancements will ensure a greater return on investment than many high-cost interior renovations.

Interested to find out the market value of an ADU for your property?