Need More Space for Guests Or to Generate Rental Income? Turn Your Garage Into An ADU

Custom 2 Story Garage With ADU

Do you ever feel like your house could use more space? Maybe you’ve got family coming to stay and you’re not sure where to put them, or perhaps you’d like to make some extra income by renting out a part of your property. Either way, you might want to consider converting your garage into an ADU – an accessory dwelling unit. ADUs have been growing in popularity over the years, as they offer homeowners a way to expand their living space and generate rental income at the same time.

In the last few years rental income has skyrocketed and many young adults are struggling to pay these high rental costs for very little square footage. Many families are converting their garages or the second floor of the garage into apartments for their adult children to live in, so they have a better chance of saving money towards home ownership themselves. This helps the family on both ends as the rental income helps pay the costs of the build, and when the adult children move on, the homeowner still has the benefit of rental income for years to come, and eventually making a profit from the yearly income.

In this blog post, we’ll explore some of the benefits of turning your garage into an ADU and how you can make it happen.

What is an ADU?

First things first – let’s define what an ADU is. An ADU, or accessory dwelling unit, is a secondary living space on the same property as a primary residence. ADUs have their own entrance, kitchen, bathroom, and living area – they’re basically like a separate apartment. They can be attached to the main house, or they can be detached (such as in a converted garage). ADUs can be rented out for extra income or used to house family members or guests.

Why convert your garage into an ADU?

There are several benefits to converting your garage into an ADU. One of the biggest perks is the potential rental income – depending on where you live, you could make thousands of dollars per month by renting out your ADU. Additionally, ADUs can add value to your property, which can be a big selling point if you ever decide to put your home on the market. Converting your garage into an ADU also gives you more space – whether you use it to house guests, family members, or as a rental property, you’ll have more room to work with.

How do you convert your garage into an ADU?

The process of converting your garage into an ADU can be a bit complicated, but it’s definitely doable. You’ll need to make sure your garage is up to code, which may involve installing plumbing, electrical, and HVAC systems. You’ll also need to make sure your ADU has a separate entrance and meets local zoning requirements. It’s a good idea to hire a contractor or architect to help with the process, as they’ll be able to guide you through the various steps involved like permits and variances.

Other Options for Creating an ADU

If you don’t have a garage, or if you don’t want to convert your current garage into an ADU, there are other options available. You could build a new garage with an ADU on your property, either as a standalone structure or as an addition to your existing home. Adding a garage for your families cars and building the AUD above. If you already have an attached garage and your property has enough space to add an AUD, you can just build a separate entry AUD.

And as monthly rents keep increasing, so will your rental income over the years. So, it’s worth the income investment especially if it’s all brand new and desirable for many years.

What Makes an AUD Desirable for Renters

Let’s talk about what makes an AUD (Accessory Dwelling Unit) desirable for a renter. First off, who wants to live in a typical building complex with shared walls? That’s why having an AUD on its own property is an exciting option. And let’s be real, who doesn’t want to live in a desirable neighborhood? A designated parking spot is a game changer when it comes to apartment living, but having access to your own outdoor space is the icing on the cake. Even if it’s just a deck or balcony, somewhere to catch some sun and throw a BBQ is a must-have for anyone who appreciates soaking up the fresh air. And can we talk about the perks of newer design, appliances, and windows? I mean, who wouldn’t want to live in a space that feels up-to-date and beautiful? Lastly, laundry in the unit is definitely a must-have for any renter. No more hauling your dirty clothes to the laundromat or figuring out a schedule with other tenants. It’s your own space to live in, it should feel like your own little oasis.

Conversion or Build Cost VS Rental Income

Are you considering converting your garage to an Accessory Dwelling Unit (AUD) or building one on your property to bring in some extra rental income? It’s a smart move, but before you dive in headfirst, it’s important to consider the costs versus the potential rental income. To get a better understanding of the financials, it’s best to speak with a garage builder or general contractor to get an accurate estimate of the project costs. Additionally, consult with a lending company to determine the loan terms and monthly payments. But that’s only half the equation! Speaking to a local real estate agent can help you get a sense of what your rental income could be, based on your location and square footage. When you have all this information, you can confidently decide how to move forward with your goal of generating extra income through your garage conversion or AUD build.


Converting your garage into an ADU can be a smart move if you’re looking to make some extra income or expand your living space. ADUs offer a lot of potential benefits, but they do require some planning and investment. If you’re thinking about converting your garage into an ADU, it’s important to do your research and work with experienced professionals to make sure the process goes smoothly. Overall, an ADU can be a great way to get more out of your home – and your garage.