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What Type of ADU is Right for You

Check out four types of ADUs and how to determine which accessory dwelling unit makes the best choice for your property.

Carly Reynolds
Carly Reynolds
Small dwelling in backyard

Accessory dwelling units, commonly referred to as ADUs, have grown in popularity with the steady increase of housing prices and the ongoing desire to achieve better work/life balance. These small but incredibly functional living spaces can be used to expand the footprint of your existing home, to welcome a younger or older generation onto your property, or even as a secondary income opportunity. We’ll break down the different types of ADUs, which ones make the best choice for your property, and the different things you need to consider when utilizing an accessory dwelling unit in general. 

What is an Accessory Dwelling Unit

Accessory dwelling units (ADUs) are smaller residential units that are located on the same property as a primary dwelling unit. They can include a casita, guest house, tiny home, granny flat, RV, prefabricated structure, and so much more. When it comes to different types of ADUs, you are only limited by your own imagination. Accessory dwelling units are a great way to expand on the living space in your existing home with an entirely new structure. 

ADU vs. Tiny Home

Both ADUs and tiny homes are trendy for their minimalistic and affordable approach to living, but they are not quite the same thing.

  • Tiny Home: Tiny houses are residences built on a very small scale. They can include many of the same types of home styles as ADUs, but they are not required to be located on the same property as another primary residence. Some tiny homes are mobile and can be moved from one property to another while others are a permanent build on their own piece of land.
  • ADU: Accessory dwelling units, by definition, are separate dwelling units that are on the same property as another primary dwelling. They can be either attached to the primary home or detached from the primary residence and placed somewhere else on the same property. 
Illustration of a small detached living space in a backyard

Types of ADUs

When you’re considering adding an ADU to your property, there are four primary types of ADUs to choose from. You can build a guest house or casita from the ground up to match the design of your existing home, you can opt for a prefabricated accessory dwelling unit that you can customize with finishes, or you can choose a portable ADU, such as a tiny home, trailer, or RV. Finally, you can repurpose an existing structure originally intended for something else. Understanding the pros and cons of each of these types of ADUs will help you determine which one best meets your specific needs. 

Built from the ground up icon

Ground-up Permanent Builds

Permanent accessory dwelling units are built from the ground up on a sturdy foundation, just as a full size home would be. It’s basically just a much smaller-scale version of building a house. This style of ADU build requires an architect for initial plans and a general contractor to manage the building process, making it the most ambitious option. But when you have the budget for the job, it can also produce the best end result. 

Pros:

  • Building a casita, guest house, or ADU from the ground up gives you the freedom to match it precisely to the design and color scheme of the main house.
  • Because it’s a permanent addition to the property, it will provide the biggest increase to the overall property value as well.
  • These ADUs can be built with the same exceptional quality as the rest of your home. 

Cons:

  • Building an ADU from the ground up is definitely the most expensive option and it will take the longest to complete. If a quick turn-around is necessary, this may not be the best option for you.
  • Permanent dwelling units can also be subject to more in-depth building codes than prefab and portable ADU spaces according to the rules in your specific area.
Prefab AUD icon

Prefab ADUs

When you want to drastically cut down on the time it takes to build your ADU and the number of professionals needed, choosing a prefab ADU option makes a fantastic choice. There are many prefab ADUs with various degrees of completion inside, depending upon your preferences.

Pros:

  • One of the biggest advantages of a prefabricated accessory dwelling unit is that you won’t have to invest in custom architectural or engineering plans for the building of the unit.
  • These units arrive to your property already built, and ready to place.
  • The pre-built arrival will drastically cut down on how long it takes to complete your ADU build. 

Cons:

  • When you select prefabricated ADUs, you’re restricted by the designs available. You may be able to find a unit that coordinates with your home, but you’ll be much less likely to find an exact match.
  • Another downside is that you will be locked into the overall design of the structure itself and have to work within those perimeters to finish designing the accessory dwelling unit. 
Mobile ADU icon

Mobile ADUs

Love the idea of tiny living but aren’t sure the ADU will provide a permanent solution? RVs, trailers, and tiny homes built on trailer bases are just a few of the many mobile options. Basically, if you put it on wheels, the future possibilities are endless.

Pros:

Mobile accessory dwelling units can provide you with the space you need, while you need it, and be relocated or sold when necessary. This is fantastic for younger generations because they can build the ADU and live in it on your property, then move it to a property of their own in the future.

Cons:

Portable ADU units are harder to make ADA accessible, so it will limit the people that can use them. This doesn’t just have to do with the elevation of the unit itself, but with the limited foot traffic space within the unit. Mobile ADUs can’t be wider than the lane of a highway or it makes them very difficult to move. Because of this, they are often smaller in size than both custom-built and prefabricated accessory dwelling units.

Renovated camper by designer Kristin Dion, matte black faucet, copper sink

Kristin Dion offers an exceptional example of how you can transform something as small as a camper into a fully functional and fashionable abode in her shop by look.

Repurposing Existing Structures

You may not need to start from scratch with your ADU at all. If you have an existing barn, carport, detached garage or other existing structure, it can be a fun renovation project to turn it into a fully functional accessory dwelling unit. 

Pros:

Because these structures already exist on your property, you don’t have to go to the expense of purchasing the structure itself. You just need to renovate the structure that’s already in place to turn it into the ADU of your dreams. 

Cons:

Repurposing any existing structure comes with its own limitations, especially if the structure was not originally intended to be used as a dwelling unit. This could include a limited floor plan, lack of insulation, poor subflooring, lack of access to water and electrical, local coding and zoning requirements, and more. Many of these issues can be remedied during the construction process but they may cause some headaches along the way.

Multi-purpose laundry and office space with dog washing station.

Who will use it?

One of the first considerations when determining which ADU makes the best choice for you is considering how the space will be used. While an ADU is an ideal place to create multipurpose rooms that can pull double-duty between things like guest rooms and home offices, it’s a good idea to know exactly what kinds of spaces you’re looking for before you sit down to the design table. Keeping the intended use in mind will help you determine what size unit you need, what spaces the unit needs to offer, and even how permanent of a structure you will want on your property.

Young woman looking at cell phone, modern black kitchen faucet

Young Adult Returning Home

Do you have a recent high school graduate, college graduate, or young adult that’s ready to move out of the house but doesn’t quite have the funds to invest in a place of their own? Rental situations, from apartments to homes and condos, can be a little bit pricey, though you can certainly make them every bit as personal as any other property with a few temporary style tips. Saving month-over-month would still be a boost up at a younger age when you have the resources.

 

ADUs placed on your property allow them to branch out and start taking on adult responsibilities without saddling them with a ton of debt. You can provide a finished ADU for them or encourage them to put their own ADU on your property. If they choose something portable, such as a tiny house, they could even take it with them when they’re ready to purchase property of their own. 

Office space with pendant light and mini-fridge

Work Space

Fully remote jobs are on the rise but what do you do when you don’t have a dedicated home work space? An ADU makes the work at home, remote-life easier every day. There are many ideas for setting up the perfect home office that can translate easily to an ADU.

Even the demands of school, whether remote schooling or just the nightly homework demand, can be hard to meet when your home isn’t prepared for it, a problem we look at in our article on Back to School necessities. An accessory dwelling unit can provide you with a quiet place to focus on work away from the distraction of spouses and children, siblings and pets, and daily chores. When you’re done with work, lock the doors and leave the stress of the day behind you. 

Birthday celebration of senior parent

Elder Generation Retirement

As parents settle into retirement, both the fixed income and their mobility may make owning a large home on property difficult. Help your parents age gracefully and let them be a little closer to family by creating an ADU on your property that’s ADA compliant and ready for their next phase in life. When you’re creating an ADU for an elder family member, make sure to consider how their condition and needs will progress and build for those possible scenarios in the first place.

Giving keys to tenant

Income Property

That extra space you have on your property can turn into major income potential when you utilize it by adding an accessory dwelling unit. If you plan on renting the unit out by the night, week, month or even year, it’s important for it to have everything a renter would require, including a living area, sleeping space, bathroom, and kitchen. Short term rentals will need to be fully furnished and outfitted with daily essentials but long-term rentals may not require that additional step, as the renter will bring in some of their own things. 

guest space with bed and sofa, modern ceiling fan

Guest Space

Do you love having friends and family visit but don’t have a spare bedroom in the house? Adding an ADU on your property is a great way to provide them with a private space when they’re in town. If guests are rare, you could even have the guest space double as one of the other functions above, as well.

Sewing room

Hobby Space

When you want a place that’s all your own to relax and spend time on your hobbies, using an ADU as a she shed or man cave is a great option. Because they are often detached from the home, they’re a great place to use noisy equipment, play with messy materials, and have an area that’s entirely dedicated to a favorite activity.

Benefits of ADUs 

Building an ADU is an initial expense, but there are many benefits to adding ADUs to your property, especially if your primary residence is not currently meeting all your needs or if you’re trying to lower the overhead of your current expenses.

Some of the most common benefits of ADUs include:

Income Potential

The initial cost of an ADU can be offset by using the finished unit as an income property. Rent out the unit itself or live in the unit and rent out the main house. ADUs can be used for both short-term and long-term rentals, depending on how quickly you want to change-out renters. Long-term rentals can be easier to maintain but short-term rentals can generate more income per night, especially in prime locations. 

Electric entry handle set, door opening to living space

Separate Entrances 

ADUs offer separate entrances, allowing people to come and go without disturbing the people in the main house on the property. This gives anyone living in the ADU their own access for daily errands and activities while remaining close to the main house, making it the perfect transition for a teen, young adult, or elderly family member.

Couple relaxing on sofa reading

Privacy & Autonomy 

One of the keys to successful multigenerational living is to make sure all parties have a feeling of privacy and autonomy, both of which are provided by ADUs. These units are a fantastic option because they are self-enclosed and private but still provide convenient proximity.

Efficiency 

ADUs are a fantastic way to achieve an environmentally friendly design. As a secondary home on the same property, it will inevitably add to the monthly electric and other services so it’s a good idea to minimize the impact as much as possible. As we explored in our article on technology for a healthy home, there are many ways to make a home green and clean rather than have to sink money into bills every month.  Take care to choose effective insulation, efficient appliances, and sustainable materials to create an ADU with minimal environmental impact. 

Lady in wheel chair, ADA accessible bathroom

Proximity for Care & Assistance

When you have a loved one that requires care, an ADU keeps them close enough to monitor, even as their needs progress. When you’re designing an ADU for this use, it’s important to make sure the ADU is designed to be ADA compliant. Keep ample floor space for mobility and allow more space for the bathroom, as well. 

Affordability 

Adding an ADU to your property is a more cost-effective alternative to purchasing an entirely separate income property. If the ADU is funded by an aging parent or young adult, building these units is much less expensive than having to purchase property somewhere.

Because they are on a smaller scale than a traditional home, you have the freedom to purchase higher quality appliances and finishes without breaking the overall budget because you’re filling a much smaller area. Higher-quality appliances help save you money in the long run because they improve efficiency and lower your water and electric costs.

Additional Considerations When Choosing an ADU

When you think an ADU might be right for your property, there are a few additional considerations that you’ll need to know before moving on to the step of building the ADU. 

Zoning & Restrictions

Any time you are adding any type of structure to your property, zoning rules and building codes are a major consideration. Once you’ve decided that an ADU is right for you, the next step is to consider any HOA covenants, zoning regulations, and building code considerations for your property.

 

Some of the rules and regulations could restrict the total height of a unit, the proximity of the unit to the edge of your property line, and whether or not you’re allowed to rent the unit out as an income property. 

Small organic modern kitchen, matte black kitchen faucet, compact fridge

Water & Electric Hook-Ups

The ADU you build needs to have water and electricity running to the unit. The way in which you accomplish this varies by what types of ADUs you build.

  • With ground-up construction, proper plumbing must be laid down before the foundation, just as it would be for any other additions to your home.
  • With other types of ADUs, adding proper water and electric hook-ups may not be quite so complicated.

We recommend calling in professionals at the very start of your project so you are well aware of any utility roadblocks that may come up, before the project is underway.

Person in wheelchair using kitchen in ADA compliant kitchen.

Consider Future Needs

When you’re using an ADU for an aging parent or a child that requires care, considering future needs is essential. Plan the interiors to be inclusive with the 7 principles of universal design. The ADU home should be accessible in more ways than just simply the ability to cross the threshold of the front door.

  • If a wheelchair or walker is required, allow more floor space and a larger bathroom with all the appropriate hand rails.
  • In the kitchen, provide lower cabinetry, lower countertops and perhaps touchless faucets. 
  • In the bathroom, a shorter vanity, touchless faucets, drawer pulls, and a roll-in, tiled shower area or a walk-in tub may be the most helpful.

The types of necessary adjustments will vary, so consider any known challenges carefully. Make sure the unit is fully ADA compliant from the start and it will continue working for them. Even as the level of care required progresses, the unit will continue working.

Shopping for Your ADU

Once you’ve decided on adding an ADU and the structure is in place, it’s time to choose the finishing touches inside the unit. 

Floating vanity sink, small kitchenette, beverage fridge, sink, faucet

Think Small to Live Big

Anytime you’re living in a small space, it’s important that every nook of the space provide as much functionality and versatility as possible. When you’re outfitting a bathroom, building out a kitchenette, or creating a dining area, make sure all the items you choose are small in size but big in functionality. 

Compact appliances provide all the same benefits as larger appliances, but take up less space. Because the ceilings are often just as tall as a typical home, don’t scrimp on utilizing that vertical space by installing plenty of tall cabinetry, floating shelves, and even stackable appliances like a washer and dryer or oven and microwave.

Choose Durable Materials

When you have a space with a small footprint, chances are that every square foot of that space will be utilized more. Make sure to choose durable materials for flooring, cabinets, and countertops that will stand up to the way you will use the ADU.

Innovative modern kitchen with high-tech appliances and smart lighting

Make it Innovative

If you’ve chosen an ADU to limit your carbon footprint, there’s so much more you can do than simply live small. Consider filling your space with a variety of sustainably sourced and eco-friendly finishes. You can also learn more about Smart lighting solutions, the best appliance features for multitasking kitchens, HVAC solutions, and home security essentials that will help you reduce water and energy consumption across the board.

Benefit from Your Accessory Dwelling Unit

With so many different ways to use an ADU and the many types of ADUs available, it really is easy to find a solution to nearly any residential problem. Best of all, an ADU is a self-contained and compact way to really express yourself with design. Don’t hesitate to jump into a new design style all together or to pack the property with top-quality items you’ve always thought about adding to your main house. See how big of an impact it can make when you build an ADU on your property.

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