ADA Units and Their Market Value

[Aaron Sweat]

Hello! First time posting here. I quickly made an account because my partner got tired of me asking her to post questions.

My question is: Currently, we are not required to build to ADA standards, but our unit is perfectly set up to be ADA accessible. The cost of construction would not be much more for compliance, mainly just a no-curb shower. I see better diversity, but I'm trying to understand the ROI. Is there more value to ADA units? Can we get more rent? Any feedback would be helpful.

[Melanie P.]

There is no value to putting in these type of upgrades in advance. If a prospective tenant needs them they will let you know and pay the cost to have them installed. Anything that is already there you can highlight in your listing, but people who need these items generally don't move around a lot after paying to put them in wherever they are living. 

[Aaron Sweat]

Thank you for the feedback Melanie. Some upgrades afterwards would be very costly. 

[Jacopo Iasiello]

Making your unit ADA accessible can offer several benefits, including a larger tenant pool, potential for higher rents, and future-proofing against regulatory changes. While the initial costs are a consideration, the long-term ROI can be favorable if there's sufficient demand in your market. Anyway welcome here! :)

[Melanie P.]

Quote from @Jacopo Iasiello:

Making your unit ADA accessible can offer several benefits, including a larger tenant pool, potential for higher rents, and future-proofing against regulatory changes. While the initial costs are a consideration, the long-term ROI can be favorable if there's sufficient demand in your market. Anyway welcome here! :)

You're a Realtor. Let's see two comparable rental listings one with ADA upgrades (grab bars, wheel in shower, etc) one without. Let's see any example of where it's generating more money in dollars. Over doing this 30 years my experience has been that able-bodied applicants are turned off by that stuff in the shower. We took a seat out once. New tenant didn't want it. Probably the same reason hotels sell their unbooked ADA compliant rooms at a discount. 

There's no such thing as "future proofing against regulatory changes." You think 30 years ago we had any idea they'd one day be after gas stoves and lightbulbs?

[John Lubin]

I'm also curious on this topic, less from a home value perspective and more from a STR or MTR strategy.

I'm about to buy and remodel a property 1 mile from a Mayo Clinic.  Aside from nurses, a lot of patients do long-term stays in the area.  I'm wondering if anyone has experience catering to this rental demographic, and what key things should I be including in my rehab (e.g. bars in shower/tub, ramps on any steps, etc.)?

[Bonnie Low]

If you have the ability to do it now, do it. I completely disagree that able bodied people are "turned off" by these amenities and if they are, how sad is that. Nowadays, design is so advanced you'd often not even know it's built to be accessible. That said, there is a considerable lack of accessible properties everywhere and there definitely IS demand. I have a vacation rental in North Carolina and I'd say at least once a month I get asked by someone looking to book whether or not it's accessible. And while it's not currently, this is something my husband and I had talked about doing and were planning to do before (ironically and sadly) he got very, very ill. After he became completely paralyzed, I found myself wondering if we'd ever be able to use our own vacation home because it wasn't accessible for him and it made me realize just how limited and unwelcoming the world is for people with disabilities. In the midterm rental community, it is regularly discussed how frequently people inquire about accessible properties, particularly in the highest end insurance placement niche where there is, indeed, a price premium on accessible properties. Personally, I'm sick of the "what's in it for me" mentality. You can be a business minded person and someone who wants to provide opportunity for others. The two can and should co-exist. It sounds like you're at a point in your project where you could make these modifications in a cost effective manner. I commend you for considering that. While few people will ever tell you they passed on renting your property because they didn't like the accessibility features, you'll know for sure when someone doesn't rent it because of the lack of these features.

[Aaron Sweat]

Thank you for the feedback, everyone. Great perspectives. If more information were available to developers and homeowners about ADA compliance and units, we would all benefit. Currently, the CBC mandates a percentage of new dwelling units to be ADA compliant, but I wonder if these units are quickly filled or if there is excess in certain regions. For those of us who have most of the necessary elements, why wouldn't we diversify our units? There is a lot to consider.

I believe in unit diversity. While I've explored full ADA compliance, we don't have the space or budget to achieve it completely. ADA units are more expensive and require more from the permitting process to construction. Therefore, I will make the units as close to ADA-accessible as possible with the least additional cost.

[Aaron Sweat]

Quote from @John Lubin:

I'm also curious on this topic, less from a home value perspective and more from a STR or MTR strategy.

I'm about to buy and remodel a property 1 mile from a Mayo Clinic.  Aside from nurses, a lot of patients do long-term stays in the area.  I'm wondering if anyone has experience catering to this rental demographic, and what key things should I be including in my rehab (e.g. bars in shower/tub, ramps on any steps, etc.)?

You can start at CBC Chapter 11. ADA compliance can get very technical. Cheers! https://up.codes/viewer/california/ca-building-code-2022/cha...

[Aaron Sweat]

Quote from @Melanie P.:

Quote from @Jacopo Iasiello:

Making your unit ADA accessible can offer several benefits, including a larger tenant pool, potential for higher rents, and future-proofing against regulatory changes. While the initial costs are a consideration, the long-term ROI can be favorable if there's sufficient demand in your market. Anyway welcome here! :)

You're a Realtor. Let's see two comparable rental listings one with ADA upgrades (grab bars, wheel in shower, etc) one without. Let's see any example of where it's generating more money in dollars. Over doing this 30 years my experience has been that able-bodied applicants are turned off by that stuff in the shower. We took a seat out once. New tenant didn't want it. Probably the same reason hotels sell their unbooked ADA compliant rooms at a discount. 

There's no such thing as "future proofing against regulatory changes." You think 30 years ago we had any idea they'd one day be after gas stoves and lightbulbs?

 Thanks Melanie for your feedback! Thank goodness for "existing non conforming!"

[Bonnie Low]

Quote from @Aaron Sweat:

Thank you for the feedback, everyone. Great perspectives. If more information were available to developers and homeowners about ADA compliance and units, we would all benefit. Currently, the CBC mandates a percentage of new dwelling units to be ADA compliant, but I wonder if these units are quickly filled or if there is excess in certain regions. For those of us who have most of the necessary elements, why wouldn't we diversify our units? There is a lot to consider.

I believe in unit diversity. While I've explored full ADA compliance, we don't have the space or budget to achieve it completely. ADA units are more expensive and require more from the permitting process to construction. Therefore, I will make the units as close to ADA-accessible as possible with the least additional cost.

You make some great points. I think of "accessible" as slightly different than ADA compliant. Much like there's "organic" produce and "certified organic." For a farmer's products to be certified organic, there are all kinds of hoops to jump through. But you can do just the same or even better raising truly organic produce without earning the "certified organic" label for marketing purposes. There's a lot you can do to make your property accessible without earning the ADA compliant stamp of approval. Providing a ramp if you have any steps. Wide doorways to accommodate walkers and wheel chairs, a floating sink in the bathroom, a walk in shower, grab bars, etc. I also find that the entire property doesn't necessarily have to be accessible. Even just one bedroom and one level of the home may be sufficient depending on who is using it. There are lots of possibilities!

[Tim Bee]

Quote from @Bonnie Low:

If you have the ability to do it now, do it. I completely disagree that able bodied people are "turned off" by these amenities and if they are, how sad is that. Nowadays, design is so advanced you'd often not even know it's built to be accessible. That said, there is a considerable lack of accessible properties everywhere and there definitely IS demand. I have a vacation rental in North Carolina and I'd say at least once a month I get asked by someone looking to book whether or not it's accessible. And while it's not currently, this is something my husband and I had talked about doing and were planning to do before (ironically and sadly) he got very, very ill. After he became completely paralyzed, I found myself wondering if we'd ever be able to use our own vacation home because it wasn't accessible for him and it made me realize just how limited and unwelcoming the world is for people with disabilities. In the midterm rental community, it is regularly discussed how frequently people inquire about accessible properties, particularly in the highest end insurance placement niche where there is, indeed, a price premium on accessible properties. Personally, I'm sick of the "what's in it for me" mentality. You can be a business minded person and someone who wants to provide opportunity for others. The two can and should co-exist. It sounds like you're at a point in your project where you could make these modifications in a cost effective manner. I commend you for considering that. While few people will ever tell you they passed on renting your property because they didn't like the accessibility features, you'll know for sure when someone doesn't rent it because of the lack of these features.

I can tell you that as a buyer I would not want hand rails, ramps, these weird wide doors to walk through and some walk in bath tub that has a door on it.  I'd pass up on an ADA home unless I'm an ADA patient.  These days homes can be extremely expensive and I'm not going to spend my hard earned money to settle for a home that has all these funky changes.  

[Bonnie Low]

Quote from @Tim Bee:

Quote from @Bonnie Low:

If you have the ability to do it now, do it. I completely disagree that able bodied people are "turned off" by these amenities and if they are, how sad is that. Nowadays, design is so advanced you'd often not even know it's built to be accessible. That said, there is a considerable lack of accessible properties everywhere and there definitely IS demand. I have a vacation rental in North Carolina and I'd say at least once a month I get asked by someone looking to book whether or not it's accessible. And while it's not currently, this is something my husband and I had talked about doing and were planning to do before (ironically and sadly) he got very, very ill. After he became completely paralyzed, I found myself wondering if we'd ever be able to use our own vacation home because it wasn't accessible for him and it made me realize just how limited and unwelcoming the world is for people with disabilities. In the midterm rental community, it is regularly discussed how frequently people inquire about accessible properties, particularly in the highest end insurance placement niche where there is, indeed, a price premium on accessible properties. Personally, I'm sick of the "what's in it for me" mentality. You can be a business minded person and someone who wants to provide opportunity for others. The two can and should co-exist. It sounds like you're at a point in your project where you could make these modifications in a cost effective manner. I commend you for considering that. While few people will ever tell you they passed on renting your property because they didn't like the accessibility features, you'll know for sure when someone doesn't rent it because of the lack of these features.

I can tell you that as a buyer I would not want hand rails, ramps, these weird wide doors to walk through and some walk in bath tub that has a door on it.  I'd pass up on an ADA home unless I'm an ADA patient.  These days homes can be extremely expensive and I'm not going to spend my hard earned money to settle for a home that has all these funky changes.  

It's too bad that physical limitations equate to "funky changes" in your mind. Just wait until you or someone you love becomes disabled and you'll find yourself viewing those funky features with new eyes. May it never come to that for you. I never thought it would for me....until it did. 

[Tim Bee]

Quote from @Bonnie Low:

Quote from @Tim Bee:

Quote from @Bonnie Low:

If you have the ability to do it now, do it. I completely disagree that able bodied people are "turned off" by these amenities and if they are, how sad is that. Nowadays, design is so advanced you'd often not even know it's built to be accessible. That said, there is a considerable lack of accessible properties everywhere and there definitely IS demand. I have a vacation rental in North Carolina and I'd say at least once a month I get asked by someone looking to book whether or not it's accessible. And while it's not currently, this is something my husband and I had talked about doing and were planning to do before (ironically and sadly) he got very, very ill. After he became completely paralyzed, I found myself wondering if we'd ever be able to use our own vacation home because it wasn't accessible for him and it made me realize just how limited and unwelcoming the world is for people with disabilities. In the midterm rental community, it is regularly discussed how frequently people inquire about accessible properties, particularly in the highest end insurance placement niche where there is, indeed, a price premium on accessible properties. Personally, I'm sick of the "what's in it for me" mentality. You can be a business minded person and someone who wants to provide opportunity for others. The two can and should co-exist. It sounds like you're at a point in your project where you could make these modifications in a cost effective manner. I commend you for considering that. While few people will ever tell you they passed on renting your property because they didn't like the accessibility features, you'll know for sure when someone doesn't rent it because of the lack of these features.

I can tell you that as a buyer I would not want hand rails, ramps, these weird wide doors to walk through and some walk in bath tub that has a door on it.  I'd pass up on an ADA home unless I'm an ADA patient.  These days homes can be extremely expensive and I'm not going to spend my hard earned money to settle for a home that has all these funky changes.  

It's too bad that physical limitations equate to "funky changes" in your mind. Just wait until you or someone you love becomes disabled and you'll find yourself viewing those funky features with new eyes. May it never come to that for you. I never thought it would for me....until it did. 

When I need it I will gladly invest in it.  Until then....I'm gonna pass on stuff like that

[Bonnie Low]

Quote from @Tim Bee:

Quote from @Bonnie Low:

Quote from @Tim Bee:

Quote from @Bonnie Low:

If you have the ability to do it now, do it. I completely disagree that able bodied people are "turned off" by these amenities and if they are, how sad is that. Nowadays, design is so advanced you'd often not even know it's built to be accessible. That said, there is a considerable lack of accessible properties everywhere and there definitely IS demand. I have a vacation rental in North Carolina and I'd say at least once a month I get asked by someone looking to book whether or not it's accessible. And while it's not currently, this is something my husband and I had talked about doing and were planning to do before (ironically and sadly) he got very, very ill. After he became completely paralyzed, I found myself wondering if we'd ever be able to use our own vacation home because it wasn't accessible for him and it made me realize just how limited and unwelcoming the world is for people with disabilities. In the midterm rental community, it is regularly discussed how frequently people inquire about accessible properties, particularly in the highest end insurance placement niche where there is, indeed, a price premium on accessible properties. Personally, I'm sick of the "what's in it for me" mentality. You can be a business minded person and someone who wants to provide opportunity for others. The two can and should co-exist. It sounds like you're at a point in your project where you could make these modifications in a cost effective manner. I commend you for considering that. While few people will ever tell you they passed on renting your property because they didn't like the accessibility features, you'll know for sure when someone doesn't rent it because of the lack of these features.

I can tell you that as a buyer I would not want hand rails, ramps, these weird wide doors to walk through and some walk in bath tub that has a door on it.  I'd pass up on an ADA home unless I'm an ADA patient.  These days homes can be extremely expensive and I'm not going to spend my hard earned money to settle for a home that has all these funky changes.  

It's too bad that physical limitations equate to "funky changes" in your mind. Just wait until you or someone you love becomes disabled and you'll find yourself viewing those funky features with new eyes. May it never come to that for you. I never thought it would for me....until it did. 

When I need it I will gladly invest in it.  Until then....I'm gonna pass on stuff like that

Very generous, but you do you. 

[Matt Devincenzo]

You aren't required to provide ADA compliant units, so you have two separate possible design accommodations. You can choose to accommodate without being obligated to make an ADA unit...

Option 1) Items that are more difficult or only of use to a specific disability could be excluded. You don't need to provide grab bars, interior or exterior ramps, wheelchair access in lower kitchen cabinets etc. You can if you want a truly ADA unit.

Option 2) There are ADA design elements that are easily implemented, low cost and don't really intrude for a non disabled tenant. Keep doors 36", or make at least one of every room type 36" doors e.g. 1 bed and 1 bath is 36" even if the rest are not. Add lever handles to doors instead of knobs. Have a roll in capable shower with a seat...this is pretty aesthetically pleasing to provide with a glass door and doesn't need to be a tub with a door. Most people wouldn't even recognize that this shower is ADA accessible it would just seem to be modern and no curb. You can do this without grab bars and its better than no ADA access...you could also include blocking in the wall for grab bars without installing them now. 

So you can make an ADA 'friendly' unit without making an actual ADA unit. 

[Bonnie Low]

Quote from @Matt Devincenzo:

You aren't required to provide ADA compliant units, so you have two separate possible design accommodations. You can choose to accommodate without being obligated to make an ADA unit...

Option 1) Items that are more difficult or only of use to a specific disability could be excluded. You don't need to provide grab bars, interior or exterior ramps, wheelchair access in lower kitchen cabinets etc. You can if you want a truly ADA unit.

Option 2) There are ADA design elements that are easily implemented, low cost and don't really intrude for a non disabled tenant. Keep doors 36", or make at least one of every room type 36" doors e.g. 1 bed and 1 bath is 36" even if the rest are not. Add lever handles to doors instead of knobs. Have a roll in capable shower with a seat...this is pretty aesthetically pleasing to provide with a glass door and doesn't need to be a tub with a door. Most people wouldn't even recognize that this shower is ADA accessible it would just seem to be modern and no curb. You can do this without grab bars and its better than no ADA access...you could also include blocking in the wall for grab bars without installing them now. 

So you can make an ADA 'friendly' unit without making an actual ADA unit. 

 Totally agree with this! Today's accessibility features are streamlined and often blend seamlessly with the aesthetic. And that's the point. Normalize accessible design so it's functional and welcoming for all.

[Aaron Sweat]

I completely agree—there are many ways to integrate good design into a more accessible space without increasing little to any cost. As long as you stay under four units, you're not governed by the Fair Housing Act, which has some accessibility requirements. Just to clarify, ADA requirements generally apply to commercial spaces or federally/state-subsidized housing, while accessibility requirements can apply to both public and private entities. I often use "ADA" as a blanket term, but that can be misleading.

I've made my Unit C (part of a three-unit property) more accessible, but it's not ADA compliant, nor would I claim that, nor am I forced to since I'm under 4 units. However, it can now better accommodate someone with a disability, and they can add any equipment needed to further improve accessibility. For instance, I didn’t install grab bars in the shower, since more penetrations can lead to more failure points based on my experience. Instead, I installed a curbless shower, which required fully waterproofing the bathroom. Helps with wheelchair access, but was more costly to waterproof the bathroom and not just the shower.

Exciting reads if you so choose: 

https://www.huduser.gov/portal/publications/destech/fairhous...

https://up.codes/viewer/california/ca-building-code-2022/cha...

Cheers!