ADU With Garage: 6 Steps to Building Your ADU

ADU with garage is a secondary housing unit on a single-family residential lot with a dedicated garage space. It has its own living area, kitchen, bathroom, and bedroom. But what makes the ADU with garage concept so interesting is that it combines this delightful living space with a practical garage area. 

For starters, an ADU, often called a secondary suite, granny flat, or in-law suite, is a self-contained living unit on the same property as a single-family home. 

Some homeowners combine an ADU with a garage to maximize their property’s functionality and value. This provides them with additional living space for rental income or family members while maintaining the utility of a garage for vehicle storage or other uses.

Steps to Building Your New ADU With Garage

Some of the essential steps to guide you through the process of building an ADU with a garage from conception to completion include:

1. Conduct Research and Planning. Before you start, make sure to perform the following:
2. 1. Ensure you research and understand your area’s local regulations, building codes, and permitting requirements.
   2. Determine the type of ADU that best suits your property and needs.
   3. Create a preliminary design and budget.
3. Secure Financing. Speak with a RenoFi professional about your financing options. This is an important step because financing ensures that you have the funds you need to cover the costs of the design and construction of your ADU along with any unexpected expenses that could arise. 
4. Obtain Permits. Visit your local building department and apply for the necessary permits, such as zoning approval and building and utility permits. Ensure that all your plans comply with local codes and regulations.
5. Hire Professionals. Engage professionals such as architects, designers, and contractors to ensure the construction process runs smoothly. They will help you develop detailed plans and ensure all elements are functional and aesthetically pleasing.
6. Start with the Construction. The construction process starts by clearing the land where the ADU with garage will be built. If you are constructing a detached ADU, ensure the site is accessible for construction equipment and materials. Also, follow the approved plans and schedule regular inspections to ensure compliance with building codes.
7. Proceed with the Finishing Touches. After construction, you can add finishing touches such as landscaping, interior design, and furnishings. Once you are sure the ADU with garage meets all safety standards, you can welcome tenants to your new ADU!

Benefits of Adding an ADU With Garage

An ADU with a garage offers several advantages for homeowners:

Increased Property Value 

If you are considering increasing your property’s value, add an ADU with a garage. An exciting trend in the United States is that most potential buyers prefer purchasing properties with ADUs, as they provide versatile living solutions.

The growing demand for an ADU with a garage is because it provides additional income opportunities, a private guesthouse, and extra living space for family members. This not only translates into higher resale value for your property but makes it more attractive on the market.

Additional Income 

An ADU with a garage is a smart strategy for creating additional income and adding value to your property. You can rent it out long-term or use it as a short-term rental on platforms like Airbnb to generate a steady income stream. 

If you live in an urban area where rental demand is high, you can use the rental income from the ADU to offset your mortgage or even cover it entirely. What will make the unit even more attractive to renters is the inclusion of a garage, especially in areas where parking is at a premium.

Sustainable Living

Some states, such as Washington, have passed bills to make building ADUs in urban areas easier to protect the environment while addressing issues such as housing and population density. ADUs are energy-efficient, minimize urban sprawl, and require fewer resources during construction, thus supporting sustainable development plans. 

This approach conserves land and resources, promoting more responsible land use. Overall, an ADU with a garage offers practical benefits while supporting a sustainable and environmentally conscious lifestyle that aligns with growing trends toward green living and responsible development.

Flexible Usage of Garage Space

The garage component of the ADU is highly versatile. In addition to vehicle storage, you can use it as a gym, workshop, art studio, or storage space for recreational equipment. Therefore, you can enhance the overall utility of your property by easily tailoring your space to your specific hobbies and needs.

Types of ADUs With Garages

ADUs with garages come in various forms to cater to different needs and preferences. Some of these include:

Attached ADU With Garage

An attached ADU shares a wall with the main house and includes an integrated garage. It involves transforming a garage or building a new structure that combines living space and a garage. The attached ADU with a garage provides a balance between independence and proximity to the main house. Therefore, it suits family members who need privacy but still want to remain close.

In addition, these structures make it easier to connect utilities, and their construction costs are low. If your property has limited space, then this setup is ideal. It also offers easy access between the main house and the ADU.

Detached ADU With Garage

A detached ADU with a garage is a standalone structure separate from the main house. It resembles a small cottage or guesthouse and includes living space and an attached or integrated garage. Because these ADUs offer the highest level of privacy and independence, they are ideal for private retreats, rental units, or guesthouses. 

You can custom-design a detached ADU to match the aesthetics of the main house. Also, detached ADUs can include multiple floors, with the living space above and the garage on the ground floor.

Garage Conversion ADU

If you want to avoid the high construction costs associated with building a detached ADU with a garage, you can convert your existing garage into an ADU. Garage conversion ADUs involve transforming the garage into a livable space with kitchens, bathrooms, and living rooms. This structure is cost-effective and fast to implement because it leverages the existing structure.

Basement ADUs With Garages

If your home has a basement, you can create an ADU by converting it into a living space and incorporating a garage into the design, either as an extension or at ground level. Once complete, the basement becomes a comfortable, independent living area, while the garage provides additional utility.

Design Tips for ADUs With Garages

Designing an ADU with a garage requires balancing the functionality of the living space and the garage. Below are some design tips to help you create an ADU that maximizes style, utility, and comfort.

• Optimize Space Utilization. When designing an ADU, maximize the available space. Consider multi-purpose furniture, such as foldable tables, sofa beds, and built-in storage solutions, to make the most of the limited square footage.
• Ensure Privacy. You must ensure privacy for both the main house and the ADU while maintaining a harmonious connection between them. You can achieve this by using fences, landscaping, and strategically placing doors and windows to create a sense of separation. If it’s an attached ADU, you can consider soundproofing floors and walls to enhance privacy.
• Focus on Natural Light and Ventilation. By incorporating natural light and proper ventilation, you can make a small space feel larger and more inviting. To achieve this, you can use large windows, skylights, and glass doors to bring in daylight and provide views of the outdoors. Remember to ensure the ADU has adequate ventilation to maintain air quality and comfort, especially if it has a kitchen or bathroom.
• Incorporate Energy Efficiency. Design your ADU with energy efficiency in mind to lower the ADU’s operating costs and environmental impact. Incorporate energy-efficient appliances, LED lighting, and high-performance insulation. Also, don’t forget to install solar panels, a tankless water heater, and low-flow plumbing fixtures. These features not only reduce energy consumption but also enhance the marketability of the ADU.

Considerations for Building an ADU With Garage 

While building an ADU with a garage can significantly enhance your property’s value and utility, it requires careful planning and consideration of various factors to ensure a successful project. Below are some key considerations to keep in mind.

Cost Considerations

Cost is a major factor when building an ADU with a garage. Here’s a breakdown of the cost considerations to keep in mind. 

Construction Costs

This is the biggest variable, depending on the size, complexity, and materials used for the ADU and garage conversion. Converting a garage can be cheaper than building a detached ADU from scratch, but it still involves labor, materials, permits, and potentially foundation work. On average, construction costs range from $100,000 to $300,000, including labor, materials, and permits.

Utility Upgrades

The ADU will have separate utility bills for electricity, water, and possibly gas or trash collection, adding to the overall cost. Therefore, ensure your budget accounts for these expenses.

Budget and Financing

For any construction project, a clear budget is essential. The cost of constructing an ADU with a garage can vary widely based on size, design, materials, and labor. To be safe, include a contingency fund for unexpected expenses that may arise during construction. 

ADUs not only increase your home’s value after renovation - i.e. once the ADU build is completed - but can also generate rental income. However, ADUs are costly. If you don’t have enough equity in your current home, funding ADU construction with a home equity loan is impossible.

For example, let’s say your current home value is $500,000, and your outstanding mortgage balance is $400,000. You are planning on adding an ADU and expect the value of your home to increase to $640,000. Your current loan-to-value ratio (LTV) is already at 80%, which means that most home equity loans are out of reach because that’s the maximum LTV they allow. So, your borrowing power using your current equity is $0.

RenoFi, on the other hand, would allow you to go as high as 150% LTV of your current value or 90% of your after renovation value, whichever is lower. So, in this example, while using a standard home equity loan results in your borrowing power being $0, a RenoFi loan allows you to borrow up to $176,000 by using the after renovation value of your home!

Legal and Regulatory Considerations

To avoid costly delays and ensure your ADU with a garage is built according to code, you must understand and comply with your area’s legal and regulatory requirements. 

• Zoning Laws: Zoning laws dictate where and how an ADU can be built. Different municipalities have specific regulations regarding ADU size, height, setbacks, and occupancy limits. Therefore, your ADU plans should comply with these regulations to avoid legal complications and delays. Consult with local planning departments and consider hiring a professional familiar with the local building codes to guide you through the permitting.
• Building Codes: An ADU with a garage must comply with all applicable building codes to ensure safety and structural integrity. These codes cover areas like plumbing, electrical, fire safety, and accessibility. Additional work may be necessary to meet these codes when converting a garage, such as modifying the foundation or adding firewalls. Therefore, you should work with professionals to design and construct your ADU compliant with local codes.
• Permitting Process: The permitting process involves submitting plans and obtaining approvals from local authorities. It’s always better to start early and ensure all documentation is in order because this can be a lengthy process.

Renting Out Your ADU With Garage

Whether you convert your existing garage or build a detached unit, renting out your ADU with a garage can be a wise investment. However, it’s not just about collecting rent checks. Here are some tips to help you navigate renting out your ADU. 

• Research on Rental Rates: Renting out your ADU can generate significant income. Start by researching local rental rates to determine the potential earnings from your unit. Consider both short and long-term rental options. Tools like Zillow and local property management companies can provide valuable rental data.
• Tenant Screening: To minimize the risk of late payments and property damage, screen potential tenants carefully to ensure they are a good fit for your property. Conduct background checks, verify income, and check references.
• Lease Agreements: To prevent misunderstandings and legal disputes, create a comprehensive lease agreement outlining the rental terms and conditions. Include details such as rent amount, house rules, payment schedule, and maintenance responsibilities.

Maintenance and Upkeep

Like any property, an ADU with a garage requires regular maintenance and upkeep to ensure its longevity and value. Some best practices for the maintenance and upkeep of an ADU with a garage include:

• Regular Inspections: Regularly check the interior and exterior of the ADU with a garage for signs of water damage, wear and tear, pest infestations, leaks, or potential safety hazards. Test smoke detectors and carbon monoxide detectors and replace batteries as needed. Address any maintenance issues promptly to prevent costly repairs.
• Property Management: If you plan on renting out your ADU with a garage, consider hiring a property management company. This will let you focus on other responsibilities while the company handles tenant screening, maintenance, and rent collection.
• Long-Term Planning: To ensure the safety, functionality, and aesthetic appeal of an ADU with a garage, plan for the long-term maintenance and upkeep of your ADU. Budget for repairs, upgrades, and routine maintenance to ensure your unit remains in excellent condition.

Conclusion

Whether you’re looking for additional living space, rental income, or a sustainable housing solution, an ADU with garage offers numerous benefits. You can successfully plan and build an ADU that meets your needs by understanding the types, design considerations, costs, and legal requirements.

RenoFi loans are the most innovative way to finance a home renovation project. Unlike traditional loans, which are based on your current home value or require you to refinance your primary mortgage and give up your low rate, RenoFi loans are based on the after renovation value of your home. This allows you to borrow, on average, 11x more, get a low monthly payment, and keep your low rate on your first mortgage.

For more information on financing your ADU project, consider a RenoFi loan to make your dream a reality. At RenoFi, we offer streamlined financing solutions specifically designed for ADUs with garages with clear terms and competitive rates.