Wall Street Journal: Your Garage May Hold the Keys to a New Rental Opportunity

By Robyn A. Friedman

Aug. 25, 2021 12:46 pm ET

If you’re looking for a way to create some passive income, look no farther than your own garage. You may be able to convert it into an accessory dwelling unit (ADU) that you can rent out.

That’s what Amy O’Dorisio did. In 2019, the real-estate agent with Coldwell Banker West in San Diego spent $130,000 to convert a detached one-car garage on the property of a two-bedroom investment property to create an additional rental unit. Due to the strong demand for affordable rentals in her market, especially among older adults seeking single-story living, Ms. O’Dorisio, now 40, has an income stream of $2,000 per month from the one-bedroom, one-bath ADU.

“The tenant is a woman in her late 60s, and that’s part of the reason why I decided to do this,” said Ms. O’Dorisio. “I knew there was an aging baby-boomer population in San Diego.”

Ms. O’Dorisio’s venture was so successful that she’s now planning to build an ADU at another property she owns by adding a second story to an existing garage.