What is the difference between an ADU and a guest house?

ADUs have their own kitchens, allowing them to be more self-contained from the main home on the site, whereas guest houses do not have kitchens. To be called an ADU, the structure must contain a full kitchen and a full bathroom.

uniteddwelling.com - Build a Guesthouse: Cost, Benefits, & Other Considerations

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Do you want to expand your living space? If so, you may want to consider building a guesthouse in your backyard. Doing so will not only increase your space but also improve your home’s value. Plus, a backyard home can also be used to generate extra income as they are ideal rental properties. While there are many ways to go about building a guesthouse, traditional methods can include a lot of hassles. You can avoid those headaches by opting for an accessory dwelling unit (ADU). These units, also known as bungalows, casitas, granny flats, mother-in-law apartments, and in-law suites, can transform your backyard into an affordable, high-quality home. However, before you begin building a casita in the backyard, you must first determine what is legal in your area. But how do you know what your HOA will allow? And how much does it cost to build a small guest house? To help you find the best solution, we’ll examine the general cost to build a guesthouse and what considerations to keep in mind. We’ll also highlight the rising trend of building ADUs rather than guesthouses and explore why this alternative might be the best choice for you.

Building A Guesthouse On Your Property

Before you begin the process of building a guesthouse, you need to do your homework. After all, the process is complex and without a plan, you can quickly derail your efforts for maximizing your living space. First, you’ll need to check with your local ordinances. Then, you’ll need to factor in expenses such as the foundation, utilities, and building permits. When calculating the mother-in-law cottage cost, you may want to research if an Accessory Dwelling Unit (ADU) is a better fit for your project.

Guesthouse vs. Accessory Dwelling Unit

The terms guesthouse and Accessory Dwelling Unit are often used interchangeably. However, some features distinguish a guest home from an ADU. ADUs have their own kitchens, allowing them to be more self-contained from the main home on the site, whereas guest houses do not have kitchens. To be called an ADU, the structure must contain a full kitchen and a full bathroom. A guest home cannot have a kitchen, and only the most basic bathroom facilities are required. This is because a guesthouse is supposed to be a temporary residence for guests of the primary residence. There's also a type of accessory dwelling unit designed to fit between these two form factors. Junior accessory dwelling units, or JADUs, might fall anywhere between these two criteria. These Junior units are usually significantly smaller than a traditional ADU, created by subdividing a section of the original residence by adding an outside access door to an existing bedroom or converting an attached garage into an outdoor-accessible living area. JADUs must be attached to the existing residence and are not required to have a private bathroom. Another significant difference between a guesthouse and an ADU is that a guest home must always be a separate and permanent structure. ADUs can be part of the main home (such as a garage), erected as an addition to the original structure, or constructed as a separate unit. When creating a guesthouse, homeowners may choose to include a full bathroom or simply a half bathroom. As you can see from these distinctions, ADUs are more permanent residences than guesthouses. For this reason, they are quickly becoming popular in areas with housing shortages. As we just mentioned, ADUs are a trendy new way to add functional living space to your home. In fact, the New York Times recently wrote an article discussing the merits of ADUs and how they can benefit the Los Angeles housing crisis. Because ADUs are less expensive to build, as well as rent, they’re a fairly obvious way to increase the housing supply. As such, they are responsible for more than 20% of new houses in Los Angeles. ADUs are also increasing in popularity because they are more efficient to build, providing quick solutions for homeowners desperate for additional space. California state laws have also streamlined the permit process, so adding an ADU to your property is easier than ever before.

Build A Guesthouse: Benefits and Challenges

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There are several benefits of building a guesthouse, with the most prevalent including:

Increasing living space (plus the resale value of your home)

Choosing to build a guesthouse adds additional living space to an existing home. However, keep in mind that ADUs are typically easier to get permits for as state governments have recently reduced standards and permitting requirements. One of the most significant benefits that offset the cost of an ADU compared to a guest house cost is that an ADU has the potential to increase the value of your current home. Even if you don't plan on selling your home right away, the additional living space appeals to potential purchasers who are searching for a method to supplement their initial investment.

Allow a family member to be self-sufficient

The prospect of their children leaving home is frequently a source of anxiety for parents. A guesthouse can help by allowing young adults to be independent while near their parents and receiving care if required. This allows individuals to live their own lives while being close to their families in case of medical crises. The same applies to an older relative or family member. Of course, if you want the person to truly be self-sufficient, they’ll most likely need a full kitchen. In which case, building an ADU is the preferable option.

Set up a Rental Business

Renting out an ADU can be a simple method for property owners to supplement their income while also helping to solve the shortage of affordable housing in cities like Los Angeles. This is especially helpful for families and single persons who are facing financial difficulties. Keep in mind that some cities define guesthouses separately from ADUs and stipulate that guesthouses are not allowed to be rented apart from the main residence. You should check with the codes in their cities to find out the rules that apply to their property.

Can You Build A Guest House In Your Backyard?

Before you begin construction on a guest home, you must first determine what is legal and what is not in your municipality, as different regulations apply to guesthouses depending on where you live. Various jurisdictions in various states will, of course, have different rules and standards when it comes to these sorts of housing. Make sure you don't live in a community where the homeowner's association (HOA) prohibits guest houses. Each of these jurisdictions has its own set of rules, but the fundamental concepts are the same. A guesthouse is usually a separate, detached structure specified by law, and although accessory housing units are acceptable for long-term rental, guest homes are not. New regulations went into effect in California at the beginning of 2020, superseding all prior municipal zoning restrictions that regulated accessory dwelling units. Some of these regulations may have also had an impact on the criteria for guest homes. As a result of these changes, information on the current legislation is difficult to find on local websites. Los Angeles has an informational website that highlights the city's aim to actively encourage building these sorts of units.

Zoning regulations

Look for your housing zone under the "community development" or "planning" sections on your city's website. Factors to research include:

The guest home’s maximum square footage

The distance between a guest house and the main home

The minimum number of parking spaces required per main home and a guest house (In some cases, no new or replacement parking is required.)

Long-term rental legality

Lengths of short-term rentals that must be met

The annual maximum number of days that a guest house can be used as a short-term rental

Maximum number of residents per unit

The necessary permits for construction

Keep in mind, your homeowners' organization may disapprove of your guest house designs, mandating rental types and terms, even if the zoning permits it. Check the HOA regulations for your plan and see whether your guest home will be grandfathered in if the restrictions change in the future.

What Size Guesthouse Should You Build?

To get the most bang for your buck, it’s typically recommended you build a guesthouse at least 500 to 600 square feet, or the maximum permitted square footage in your area. Set an objective for your guest home, keeping local laws in mind, and explore how its purpose will affect design. The size of an ideal guest house will need to be adjusted depending on its intended purpose.

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How Much Does It Cost To Build A Guest House In The Backyard?

Regarding the cost to build a guest house, location is the most important factor (since the more costly a place is to live, the more it will cost to build) with material quality coming in second. Because new buildings are best left to the professionals, labor will account for at least a third of the total cost, and as much as 60%. The majority of the expenditures here (in addition to labor) are for structural improvements like installing windows, insulation, drywall, a ceiling, and flooring, but if you want to build a full-fledged apartment with a bathroom and kitchen, expect to spend considerably more. With all of that information in mind, the average cost to build 600 sq ft house is $55,000.

Modular Units

The cheapest option is a modular construction that comes as a kit of parts—some items are advertised for as little as $5,000 for a steel frame structure. However, these prices are rarely what you’ll end up paying, as you’ll receive little more than an empty box. Plus, there's a lot more to these constructions than simply purchasing one online and setting it up in the backyard.

Foundation

First, make sure the area where your construction will be installed is well prepared. This includes grading and leveling the ground, as well as laying a foundation. While a modest garden shed may be built on a concrete block and timber-grade base, anything bigger than 160 square feet needs a more substantial foundation to avoid sinking into the earth. This might be a concrete slab ($4 per square foot on average) or a pier and beam foundation ($5 per square foot on average). A foundation for a 600-square-foot cottage will cost between $2,500 and $4,000, although this can vary significantly.

How Long Does It Take To Build A Guest House?

Depending on the weather and site circumstances, a guest home might take anywhere from four months to a year to build. Keep in mind that this is just the building timeline; design, permits, and contractor bidding can take anywhere from six to ten months. Of course, time is usually of the essence when it comes to creating additional living and/or workspace That’s why adding a prefabricated ADU is a great alternative. United Dwelling offers Studio, One Bedroom, and Two Bedroom designs that, after the permitting process, which can vary by neighborhood, can be installed in a matter of weeks. In addition to our quick and efficient building practices, we construct your ADU offsite. Doing so minimizes the noise and disruption to your everyday life.

Get a Free Consultation

As you’ve just learned, building a guesthouse is a multi-step, time-consuming process. If you’re going to dedicate your resources and money to a new living space, we highly recommend building an accessory dwelling unit (ADU). They are much easier to turn into a rental property as they have a kitchen. Plus, ADUs have easier permitting and fees than building a guest house. United Dwelling is one of the few builders of accessory dwelling units in Los Angeles that include permits in the building cost and by choosing us, you won’t be surprised by any hidden fees. Let our Community Development Manager know what you're looking for and our innovative, cost-saving process gets you the ADU you want at a guaranteed fixed price with zero hidden fees. Earn more from your home and call us at (310) 853-5954 today to get started.

uniteddwelling.com - Build a Guesthouse: Cost, Benefits, & Other Considerations

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