What Is an ADU? Everything You Need to Know
Accessory Dwelling Units, commonly known as ADUs, are rapidly becoming a popular housing solution across the United States. Whether you’re looking to house a family member, generate rental income, or add value to your property, an ADU might be the perfect solution. This comprehensive guide’ll cover everything you need to know before you build one.
What Is an ADU
An Accessory Dwelling Unit (ADU) is a secondary housing unit located on the same lot as a primary residence. Sometimes referred to as granny flats, in-law suites, backyard cottages, or garage apartments, ADUs are fully functional living spaces. They typically include a kitchen, bathroom, living area, and sleeping quarters.
Types of ADUs
ADUs come in various forms, depending on your property layout, budget, and goals:
Detached ADU
A standalone structure built separately from the main home, usually in the backyard.
Attached ADU
Connected to the primary residence, often built as an extension.
Garage Conversion ADU
Transforms an existing garage into a livable dwelling.
Basement or Interior Conversion
A remodel of existing space within the main home, such as a basement or attic.
Above-Garage ADU
Constructed above a detached garage to maximize vertical space.
Why Build an ADU
There’s a lot of great reasons to build an ADU, too many to list…check out our list below
Additional Income
You can rent your ADU for passive income. Earn money without working, the true American dream.
Multigenerational Living
Turn your garage into your own old-folks home or safety net for extended family. (I admit maybe this isn’t the biggest selling point).
Increased Property Value
An ADU can significantly increase your property value. Studies show that lines and smiles form coincidence lines.
Flexible Use
You can also use your ADU as an office, short-term rental (please don’t), guest house, gym you’ll never use, or storage room for failed art projects. The possibilities are endless, you could even turn it into a mini stone oven pizza restaurant for you and your family, or a pool house in the summer.
Sustainable Living
If you wanna go hardcore eco-friendly and your family can fit, you could even use the ADU as your main house. This avoids the use of unnecessary electricity, water, and other utilities. Then you could rent out the main house for even more passive income than the ADU would bring in.
Legal Considerations and Permitting
Before breaking ground, it’s crucial to understand local zoning laws and permit requirements. Regulations vary widely by city and state. You will want to double-check all city requirements and their potential associated costs to be sure the ADU you’re considering is even worth the effort. I even left-aligned this entire section to iterate how important this step is. Some important things to at least vaugley remember to check before giving up and hiring a pro can be found below.
Check your local zoning code for ADU allowances
Determine size, height, and setback requirements
Understand parking and occupancy limitations
Apply for all necessary building permits
Reach out today and let us take care of your entire ADU project from start to finish.
No need to deal with the hassles of permitting and dealing with the city.
Design and Construction Tips
Maximize Natural Light
Smaller spaces benefit greatly from large windows and open layouts.
Use Multi-Functional Furniture
Murphy beds, fold-out tables, and built-in storage help conserve space.
Ensure Privacy
Thoughtful placement and landscaping can ensure privacy for both the main house and the ADU.
Match Aesthetic
Design your ADU to complement the main home’s architecture and style.
Costs and Financing
ADU construction costs vary widely based on type, size, location, and materials. On average, you can expect:
Garage Conversions: $60,000 – $120,000+
Detached ADUs: $100,000 – $300,000+
Interior Conversions: $50,000 – $100,000+
Financing Options
Home equity loans
Construction loans
Cash-out refinancing
California also has every changing grants and incentive programs which can help save some money.
Common Challenges and How to Avoid Them
Underestimating Costs
Always include a contingency budget (10–20%) for unexpected expenses.
Delays in Permitting
Work with professionals who are familiar with local permit processes.
Inadequate Design Planning
Invest in professional design services to ensure the space is efficient, livable, and up to code.
ADUs and Property Taxes
Building an ADU may affect your property tax assessment. In many areas, only the value added by the ADU is reassessed, not the entire property. Check with your local assessor’s office for accurate information.
Is an ADU Right for You?
Whether or not an ADU makes sense for you, your situation, and your property depends on several variables. A Few good questions to start with would be:
Do you have enough space on your property?
Can you afford the construction costs?
Do local regulations allow for an ADU?
What’s your primary purpose—rental, family, resale?
If the answer to most of these is “yes,” an ADU might be a smart investment.
You can always reach out to us for a free in-home estimate or to answer any questions you might have over the phone by calling us here.
An ADU can provide incredible value, flexibility, and functionality for homeowners. Whether you’re planning to generate income, support family, or increase your home’s worth, building an ADU is a project worth considering. Your ADU can be a seamless and rewarding addition to your property with the right planning, team, and vision.
Ready to build an ADU? Contact Supreme Remodeling INC. today for a free consultation and discover how we can help you create the perfect space.
