Adding an ADU to Your Sarasota Home: Generate Income While Supporting Affordable Housing

As Sarasota continues to grow, so does the need for affordable housing. Homeowners looking to enhance their property’s value and earn additional income can do so while making a positive social impact by adding an Accessory Dwelling Unit (ADU). These small, self-contained living spaces offer a unique solution that benefits both homeowners and the community.

What Is an ADU?

An ADU, also known as a granny flat or in-law suite, is a secondary housing unit on your property. Whether it’s a detached unit in the backyard or an addition attached to the main house, ADUs are designed to provide a separate living space that includes a kitchen, bathroom, and sleeping area.

Why Build an ADU in Sarasota?

1. Generate Passive Income

Renting out your ADU can provide you with a steady stream of income. With Sarasota being a popular location for tourists and seasonal workers, there’s always a demand for rental units. Whether you’re considering long-term tenants or short-term vacation rentals, your ADU can become a reliable source of additional revenue.

2. Increase Property Value

Adding an ADU can significantly boost the value of your home. In a market like Sarasota, where home prices are rising, having a well-designed ADU can make your property more appealing to potential buyers.

3. Support Affordable Housing

Sarasota faces an affordable housing crisis, making it difficult for many residents to find suitable living arrangements. By renting out your ADU at an affordable rate, you can help alleviate this issue. ADUs provide flexible housing options for those in need, including young professionals, seniors, or families struggling to find a place to live.

4. Adaptable Space for Family Use

Beyond renting, ADUs are perfect for multi-generational living. If you have aging parents or adult children who need an independent space, an ADU offers a private yet connected solution. It can also serve as a guesthouse or home office, giving you flexibility in how the space is used.

Considerations Before Adding an ADU

Before moving forward with an ADU, it’s essential to familiarize yourself with Sarasota’s zoning laws and guidelines. Here are some key considerations from the City of Sarasota ADU Guide

1. Size and Height Restrictions 

• The maximum size for an ADU is 650 square feet

• The maximum height is 24 feet in residential zone districts and 2 stories in the Downtown Neighborhood zone district. 

2. Location Restrictions 

• ADUs are not permitted within the boundaries of the Coastal Islands Overlay District, which includes the Barrier Islands. 

3. Design Standards 

• ADUs must be designed to ensure compatibility with the neighborhood’s character and maintain the desired livability. This means the appearance, scale, and location of the ADU should blend well with surrounding homes. 

4. Additional Requirements for Residential Single-Family (RSF) Zones 

• The property owner must reside in either the primary dwelling or the ADU. 

• For new ADU building permits, the applicant must provide an affidavit to the city confirming that the ADU will be rented at an affordable rate to individuals with qualifying household incomes. 

By adhering to these guidelines, you can ensure that your ADU meets Sarasota’s regulations and contributes positively to both your property and the community. 

Final Thoughts 

Adding an ADU can be a rewarding investment that not only increases your property’s value but also supports the Sarasota community by providing much-needed affordable housing. Whether you choose to rent it out for extra income or use it for personal reasons, an ADU adds both versatility and value to your home.