{"id":18700,"date":"2020-08-31T12:31:05","date_gmt":"2020-08-31T19:31:05","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=18700"},"modified":"2026-04-03T06:44:42","modified_gmt":"2026-04-03T13:44:42","slug":"building-a-guest-house","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/building-a-guest-house\/","title":{"rendered":"Building a Guest House 101: Get Your Accessory Dwelling Unit Up and Running"},"content":{"rendered":"

Guest houses are no longer just for the lucky friends of Hampton hopping, tennis swinging socialites. Today homeowners are building guest houses as creative solutions to multi-generational housing<\/a> and house hacking<\/a> their mortgages. And in the midst of a pandemic, guest homes are helping families save costs in times of economic turmoil,<\/a> housing remote college students, and providing an alternative living arrangement to retirement communities.<\/p>\n

\u201cThe trend is very, very, significantly<\/i> rising,\u201d shares Taylor Cresswell<\/a>, a top real estate agent who sells 86% more properties than the average agent in Tampa, Florida. In Florida, 4% of homes are multi-generational<\/a> and another 45,000 homes<\/a> function as Airbnbs, more than any other state<\/a>.<\/p>\n

\u201cIn the past two to three years, I’ve seen a lot more [multi-generational] families who are looking for something specifically for their income and, as real estate prices go up, many first time homebuyers looking to owner occupy a property with an in-law suite. It\u2019s the easiest way to cover their mortgage payment.\u201d<\/p>\n

Let\u2019s dive into the ins and outs of building a guest house and how to achieve the greatest return on investment to make your project worthwhile.<\/p>\n

Guest houses by definition<\/h2>\n

Guest houses go by many regional colloquialisms: casitas, granny flats, in-law suites, cottages, tiny houses. In the eyes of the law, these mini-me versions of the main home are divided into two categories:<\/p>\n

    \n
  1. Guest house:<\/b>
    \nA living quarter subordinate to the main house lacking a full kitchen and\/or the necessary plumbing and electricity systems to function as an independent unit.<\/li>\n
  2. Accessory Dwelling Unit (ADU):<\/b>
    \nA self-contained unit with a full kitchen and bathroom, meeting necessary legal plumbing and electrical standards to independently house family members or tenants.<\/li>\n<\/ol>\n

    We\u2019ll focus primarily on ADUs, though will use the colloquial term \u201cguest house.\u201d ADUs cost more to build, but yield a higher ROI as they may function as legal rentals. Plus, these units\u2019 full facilities bless both houses with privacy and independence, so you can keep your boisterous mother-in-law or twenty somethings Airbnb guests at a comfortable distance.<\/p>\n

    \"A<\/a>
    (Source: Arwin Basdew \/ Unsplash)<\/figcaption><\/figure>\n

    1. Getting started: Learn the local laws on ADUs<\/h2>\n

    Before you frolic in fantasyland with your extra casita cash, learn the local laws to see what\u2019s possible in your area. In response to Airbnb and VRBO, many cities are placing restrictions on short-term rentals<\/a> to prevent local housing from morphing into hotels. More positively, areas with housing shortages are loosening laws<\/a> on ADUs so they may serve as much-needed rentals.<\/p>\n

    Zoning laws<\/h3>\n

    Find your housing zone on your city\u2019s website under \u201ccommunity development\u201d or \u201cplanning\u201d sections. The website Accessory Dwellings also provides a crowd sourced catalog of ADU laws<\/a> in cities across the U.S. for reference. Zoning determines:<\/p>\n