ADU vs. Guest House: Which Is Right for You?

Homeowners looking to add property value and functionality to their homes have multiple options, one of those being an Accessory Dwelling Unit or ADU. Another option? A guest house. Depending on your needs, both of these can provide differences. And which one is right for you? In this post, I will provide:

• A detailed comparison of an ADU and a guest house.
• Highlighting their differences and benefits.
• The potential limitations they may impose.

What is an ADU?

An accessory dwelling unit (ADU) is a secondary housing unit located on the same lot as a larger main residence. ADUs can take many forms; they might be detached (separate from the main house, such as a backyard cottage), attached to or within the main residence (such as a basement suite or garage conversion), or an apartment above a garage. An ADU must typically have a kitchen, bathroom, and sleeping area, and it must be fully functional as a living space that can be separate and independent of the primary residence.

Benefits of an ADU

• Versatility: ADUs can be used as a primary residence for aging parents, for example, or serve as a rental property.
• Value Addition: Properly constructed ADUs can increase property value and attractiveness to future buyers.
• Zoning advantages: Many urban areas import zoning laws, making ADUs more likely to be permitted and built.

What is a Guest House?

Guest houses, meanwhile, are similar to ADUs in sharing the characteristic that they are a separate living unit on a property, but are more likely intended for short-term stays when friends or family come to town, and they might not be fully self-contained units with a kitchen or only have limited cooking facilities.

Benefits of a Guest House

• Hospitality: Provides private space for guests, even if they are separated from the main house.
• Multi-purpose: Doubles as a private sanctuary like a bedroom or hobby space and as a versatile home office when guests are not present.
• Regulatory ease: According to local regulations, guest houses might have fewer building and zoning requirements than ADUs.

Key Considerations

Zoning and Regulations

Make sure you understand your local zoning laws and building codes and what restrictions they can put on creating an ADU, as that could help you decide whether to add an ADU or a guest house. Many ADUs, for example, are subject to strict limits on size, design and occupancy that don't apply to guest houses.

Cost and Construction

The question arises: how much money does building an ADU cost?

While this may be a way to get some extra income from your property, the costs can be quite high. An ADU is typically much more involved than building a guesthouse, as the requirements of living as an independent tenant need to be further developed when building an ADU.

Use and Functionality

Consider your addition's primary purpose: Is it going to be a rental property? A place for family members? Those use cases might suggest an ADU. Is it just a small space for occasional guests and personal use? If so, a guest house could be all you need.

Long-Term Impact

So, while both ADUs and guest houses can add value to your property, an ADU does allow more flexibility in how you might use a property in your circumstance, which may be more desirable over time as your needs change.

ADUs Vs Guest Houses: Which Is The Best Option?

Ultimately, whether you choose to build an ADU, a guest house, or neither largely depends on your particular needs and circumstances. Adding an ADU or a guest house to your property has the potential to increase your living space and the value of your property. The specifics, from the size of your lot to the prevailing zoning regulations, should be weighed carefully when making your decision.

If it's a versatile solution, ADU will work for you. If it's a space mainly for guests and occasional use, a guest house may be more cost-effective. Whichever option you choose, do your research and talk to somebody who can guide you through the process. Neither – an ADU nor a guest house – is cheap. However, it's a decision that will give a lot back in value for years to come.  Take stock and determine the right solution for your needs and budget.

If you're a homeowner looking to get into the granny flat game by building an ADU with Grand Rapids Remodeling Pros, we're your go-to. We know all the paperwork and local zoning laws you'll need for your ADU project. We'll help you plan, gather documents, submit plans, and manage your project to completion. This way, your project is ready to go, and you can enjoy your property again. With an ADU we build for you, we aim to make your experience smooth and enhance your property's value. Contact us today to see how an ADU can meet your needs!