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What is an ADU? A complete guide to Accessory Dwelling Units


Cozy wooden cabin interior at dusk with warm lighting, visible sofa, desk, and chair. Glass doors open to a garden setting.


Overview


An Accessory Dwelling Unit (ADU) is additional living space on the lot that can become a room, office, guest house, etc. ADUs are becoming increasingly popular among homeowners looking for extra living space, rental revenue, or a private home office.


With rising urban housing demands and flexible living arrangements, ADUs are a smart, effective approach to increase property value and livability.


Types of ADUs


ADUs come in various forms, depending on the available space, local zoning laws, and homeowner preferences. Here are the most common types:


1. Detached ADU

This is a completely separate residential building, separate from the main house.  A detached ADU is ideal for creating an independent living space.

 

Best for: Rental income, guest houses, or multigenerational living.


2. Attached ADU

A separate room that is attached to and integrated into an existing home is called an attached ADU. For people who want to maximize their space without leaving the main building, this ADU option is ideal. 


Best for: Expanding living space without sacrificing yard area.


3. Garage Conversion

Transforming an existing garage into a livable unit is a cost-effective way to create an ADU. These units can be fully equipped with a kitchen, bathroom, and living space.


Best for: Utilizing underused space without building a new structure.


4. Basement Conversion

A finished basement ADU can serve as a rental unit, home office, or guest suite while staying within the footprint of the main home.

Best for: Maximizing existing square footage.


5. Internal ADU (Jr. ADU)

An interior portion of the main house that has been sectioned off as an independent unit, often with a kitchenette and private entrance.


Best for: Small-scale housing needs, like a home for aging parents or a separate workspace.


Why Build an ADU? Key Benefits


ADUs offer multiple advantages for homeowners and communities alike. Here’s why they are gaining popularity:


Boosts property value – Adding an ADU can significantly increase resale value, making your home more attractive to future buyers. 


Rental income – Whether rented long-term or as an Airbnb-style short-term rental, an ADU can provide a steady income stream.


Flexible living arrangements – Ideal for multigenerational families, ADUs allow elderly parents, adult children, or guests to live independently while staying close.


Affordable housing solution – ADUs help address housing shortages by offering smaller, more affordable rental options in urban areas.


Utilizes underused space – Converting a garage, basement, or backyard into an ADU maximizes your property’s potential.


Sustainable & eco-friendly – Many ADUs are designed with energy-efficient materials and small carbon footprints, contributing to greener living.


ADU Regulations & Permitting: What You Need to Know


Before you start building an ADU, it’s essential to understand the local regulations in your city or state. These regulations typically include:


Size limitations (e.g., max square footage relative to the main home)

Zoning laws & setback requirements

Parking & utility connections

Occupancy restrictions (e.g., short-term rentals vs. long-term use)


Since these rules vary greatly, consulting with our specialists from MG Modern can save you time. We know the law well and take all the rules into account.


Final Thoughts: Is an ADU Right for You?


As housing needs evolve, ADUs offer a practical, cost-effective, and future-proof way to expand living space, generate income, or accommodate loved ones. Whether you’re looking to invest in rental income, create a home office, or provide independent living for family members, an ADU can be a game-changer.

Thinking about building an ADU? Contact EG Modern today for expert guidance and innovative design solutions.


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