Considering an ADU? Here’s what you need to know

Q: I want to add an Accessory Dwelling Unit to my backyard. What do I need to know? How do I get started, and what are my options?

A: You’re not alone! Thanks to the popularity of home improvement shows, rising home equity values and multigenerational living, many homeowners are getting creative in their quest to add space to their homes. ADUs are a great way to expand your square footage, house family and guests, bring in additional income and add resale value to your property.

When it comes to creating new units, there are two main options: accessory dwelling units (ADUs) and detached accessory dwelling units (DADUs). As their names suggest, DADUs are separate units detached from the main house, while ADUs are directly attached (e.g., converted garage, basement or an addition).

Which one you choose really comes down to your goals and project scope. If you don’t want to go through a complex construction project by adding a detached structure, you can simply remodel existing space to create an ADU, like converting a basement into a guest suite.    

DADU vs. ADU

One huge benefit of DADUs is they’re separate living spaces. This can be appealing for homeowners with aging parents, as it meets an immediate need — giving a relative a place to stay while creating a potential rental space for the future as family needs change. DADUs also make great home offices and workspaces as they offer convenience and privacy.

However, it’s likely easier — and more cost-effective — to simply renovate your basement or build above the garage. Budget can be a big factor, as well as your home’s current configuration.