Boost Your Retirement Income with This Rental Hack

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Retirement is a time of transition for many individuals, as they adjust to a new lifestyle and budget with a potentially reduced income. Some retirees choose to downsize or move to areas with lower costs of living to make ends meet. However, there is a rental hack that some retirees have discovered, which allows them to not only generate extra income in retirement but also enjoy benefits such as aging in place, tax advantages, and more.

Real estate experts Sean Phillips and Dawn David have highlighted the benefits of building or converting an accessory dwelling unit (ADU) on your property in retirement. Building an ADU can provide retirees with the option to live in one unit while renting out the other to help cover expenses. This can be a great way to maximize income and make the most of your property.

There are various ways to finance the construction of an ADU, including using a home equity line of credit (HELOC) to tap into the equity of your existing property. Additionally, some cities, counties, and states offer incentives or assistance programs to make it easier to build an ADU, especially in areas with low rental inventory.

Many retirees are designing their ADUs with aging in place features, allowing them to stay in their homes as they grow older. These features include zero-height thresholds, wider doorways, roll-in showers, and more, making the space accessible and comfortable for seniors.

In addition to generating rental income, ADUs can also be used to house live-in caregivers, saving retirees money on assisted living facilities. For retirees on a limited income, an ADU can provide additional income to help cover expenses and make ends meet.

While building an ADU can be a great financial decision for retirees, it is important not to rush the process. Taking the time to plan and ensure compliance with building codes is crucial to avoid legal issues down the line. Building or converting an ADU may require careful consideration and investment, but it can ultimately make a significant difference in your financial and physical comfort in retirement.

In conclusion, exploring the option of building or converting an ADU on your property can be a smart financial move for retirees looking to supplement their income and age in place. With careful planning and consideration, an ADU can provide retirees with a valuable source of income and flexibility in their retirement years.