Renter Demand for ADUs?

[Jemini Patel]

Hi All! My parents have a (legal) ADU in their backyard and I floated the idea of them possibly fixing it up and renting it out as a form of income since they are retired.

It doesn't seem like it's uncommon for people to rent out their ADUs, but I'm curious for anyone who has, what type of tenants are generally interested in this set up. 

It's about 750 sq ft. and would probably be furnished and a mid-term or month-to-month set up to allow for flexibility when family is in town.

I'm just starting to learn about these types of units and currently the idea of living in someone's backyard is very foreign to me coming from NYC. We are just trying to gauge if there is enough demand for this type of set up to justify the cost of renovating.

Any thoughts are much appreciated!