Accessory Dwelling Units (ADUs)
ADUs are secondary housing units on the same parcel as a primary or multifamily property, with local rules shaping feasibility.
Definition
Accessory Dwelling Units (ADUs) are secondary homes on the same parcel as a primary residence or multifamily property. They have their own living, sleeping, eating, cooking, and sanitation facilities, and may be detached, attached, or created by converting existing space. Local rules often determine where ADUs are allowed and what limits apply, such as parking, setbacks, unit size, and review standards.
Example
A multifamily owner evaluates an older apartment community with underused ground-floor storage space and a large rear lot. The operations team reviews local ADU rules to determine whether some interior space can be converted into rental units and whether detached ADUs are allowed on the same parcel.
Why It Matters?
ADUs can affect unit counts, staffing plans, maintenance coverage, parking management, leasing workflows, and compliance obligations. For operations leaders, they are important because local policy changes may create opportunities to add smaller rental homes, while zoning, parking, lot-size, and fee requirements can determine whether those units are practical to operate.

